OR WAIT null SECS
LAKE FOREST, Calif. -- I-Flow Corporation announces that it has entered into a binding letter of intent to acquire AcryMed, Inc., a privately held Oregon-based developer of innovative infection control and wound healing products. AcryMed shareholders will receive $25 million in cash from I-Flow in the planned merger.
AcryMed developed the proprietary nanoparticle treatment process for the silver coating on I-Flow's ON-Q SilverSoakerTM Catheters and has been treating the catheters since I-Flow developed the product line in 2005. AcryMed will also manufacture for I-Flow a new line of silver transparent wound-site dressings, which I-Flow expects to bring to market early next year. In addition to providing silver coating for these I-Flow products, AcryMed is active in researching and developing new wound care technologies and has licensed a portion of these technologies for a range of infection control and wound care products.
AcryMed's patent portfolio consists of a total of 66 worldwide issued and pending patents, including 16 U.S. patents. In addition, their scientific staff includes four PhDs and 10 other scientists who have made AcryMed a leader in silver antimicrobial technologies.
I-Flow expects that the acquisition of AcryMed will enable I-Flow to realize synergies in the treatment of its ON-Q SilverSoaker Catheters and transparent wound dressings, as well as expand I-Flow's strategic focus to include general surgical site care management in addition to its leadership position in regional anesthesia for post-surgical pain management.
Donald M. Earhart, I-Flow's chairman and CEO, commented, "The acquisition of AcryMed, and the personal commitment of AcryMed's leaders, Dr. Bruce Gibbins and Jack McMaken, to join forces with I-Flow's team, are critical and exciting steps in our plan to expand into wound care products and new technologies in this important arena. AcryMed is a pioneer at the forefront of innovations in the fields of infection control and wound healing. The company's SilvaSorbÂ® products for advanced wound care and SilvaGardÂ® nanoparticle surface treatment for medical devices are among the silver-based technologies that have distinguished AcryMed as a leading innovator in the industry. This is especially significant in view of the recent announcement by the Centers for Medicare and Medicaid Services (CMS) that, for discharges occurring on or after October 1, 2008, hospitals will not receive additional payment for patients where certain conditions were not present on admission, such as hospital-acquired infections. This acquisition allows I-Flow to take more control over our expansion into an even bigger addressable market for the ON-Q franchise and will provide us with more innovative new products for our existing ON-Q sales force to sell."
I-Flow entered into the binding letter of intent with AcryMed and shareholders owning a majority of AcryMed's shares on Dec.13, 2007. The agreement contemplates the merger of a new subsidiary of I-Flow into AcryMed, with AcryMed being the surviving corporation as a wholly owned subsidiary of I-Flow. I-Flow's obligation to complete the acquisition is subject to certain customary conditions as well as I-Flow's completion of a due diligence investigation with the results of the investigation being satisfactory to I-Flow in its discretion. If these conditions are satisfied, I-Flow expects to consummate the acquisition during the first quarter of 2008.
As part of the acquisition, I-Flow also expects that Gibbins, AcryMed's founder, chief technology officer and chairman, and McMaken, AcryMed's CEO and president, will enter into new, full-time employment agreements to actively continue AcryMed's ongoing business and development.
Source: I-Flow Corporation