Baxter International Inc. (NYSE: BAX) put aside $200 million in equity to invest in early-stage companies that "complement" its portfolio.
The newly established " Baxter Ventures will invest globally and focus on innovative technologies with sustainable long-term growth" under the watch of the Deerfield, Ill.-based company’s chief scientific officer Norbert Riedel, according to a press release.
"Baxter Ventures will allow us to provide companies with promising, early-stage technologies with the capital and expertise needed to drive successful innovation," Riedel said in prepared remarks. "Through this additional investment, Baxter will expand its internal pipeline with the goal of further strengthening the company’s history of innovative ‘firsts’ in medical therapies."
The news comes as med-tech companies are facing increasing competition from private equity firms with renewed interest in medical device acquisitions.
Baxter, which ranked 6th on the MassDevice Big 100 list of the world’s largest medical device companies, recently posted double-digit growth in both its top and bottom line during the second quarter of fiscal year 2011 while cautioning that the the market is still stormy.
"While we’re pleased with improving fundamentals and enhanced financial performance as evidenced by our first half results, I highlight that we continue to navigate through a challenging macro environment that’s evolving on a global basis and continues to absorb ongoing pressures on our business and the healthcare industry more broadly," president & CEO Robert Parkinson said during a conference call with analysts.
Here’s a roundup of other dealflow and investment news:
- AccuVein raises $22.5 million in series B
Medical imaging company AccuVein Inc. raised $22.5 million in a series B funding round led by MVM Life Science Partners and Bessemer Venture Partners. The Long Island, N.Y.-based company plans to use the funds to expand into new markets and focus on international partners.
- Choice Therapeutics raises $582,000 of a $3 million round
Waltham, Mass.-based Choice Therapeutics Inc. raised just over half a million of a $3 million funding round spread across 12 investors, according to SEC filings. Choice Therapeutics develops wound management devices.
- Phraxis looks for $5 million
Minnesota startup Phraxis Inc. is hunting for $5 million to develop its alternative hemodialysis products, MedCity News reported. Phraxis’ device allows implantation of a permanent dialysis device that allows patient blood to be withdrawn and dialyzed.
- Profound Medical lands $1 million grant
Profound Medical Inc. landed a $1 million grant from Ontario’s Investment Accelerator Fund, a Canadian public-private partnership and charitable organization that helps handle dispersment of Toronto’s $1 billion in annual science and technology research spending. Profound is commercializing a device to treat localized prostate cancer on an out-patient basis.
- Smartphone heartrate app maker touts $2.5 million
Azumio, a Palo Alto, Calif.-based company that develops apps that allow users to check their pulse on the go, raised $2.5 million in series A financing from Founders Fund, Accel Partners and Felicis Ventures. The company will use the funds for product development.
Here’s a roundup of companies announcing mergers, acquisitions and divestitures.
- Brooks Automation picks up Nexus Biosystems for $79 million
Chelmsford, Mass.-based Brooks Automation Inc. (NSDQ:BRKS) announced that it acquired Poway, Calif.-based Nexus Biosystems Inc. for $79 million this week. Brooks paid an additional $6.7 for the value of unrestricted cash held by Nexus at closing. Nexus develops compound and sample management solutions for life sciences.
- Solar energy company acquires hospital bulk purchasing group
China Nuvo Solar Energy Inc. (PINK:CNUV), a development stage company with patent pending solar and photovoltaic related technology, announced a definitive agreement to acquire hospital supply discounter SurgLine Inc. via acquisition of 100 percent of SurgLine’s common stock.