Say hello to MassDevice +5, a bite-sized view of the top five medtech stories of the day. This feature of MassDevice.com’s coverage highlights our 5 biggest and most influential stories from the day’s news to make sure you’re up to date on the headlines that continue to shape the medical device industry.
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5. Biotelemetry closes $16m VirtualScopics buy
BioTelemetry said yesterday that it closed its $15.5 million acquisition of clinical trial imaging provider VirtualScopics, approximately 6 weeks after the deal was 1st announced.
The all-cash buyout of Rochester, N.Y.-based VirtualScopics included a $4.05-per-share tender for roughly 3 million VirtualScopics shares. BioTelemetry also offered $336.50 per share for the company’s Series A and Series B stock, and $920 per share for VirtualScopics’ Series C-1 stock. With the deal complete, VirtualScopics is now a wholly-owned BioTelemetry subsidiary, according to a May 12 regulatory filing. Read more
4. ITC opens probe of China’s BMC Medical in patent war with ResMed
The U.S. International Trade Commission yesterday opened a probe into BMC Medical‘s importation of sleep apnea devices, as the long-running patent infringement war between the Chinese company and ResMed grinds on.
ResMed asked the ITC to investigate BMC and its U.S. distributor, 3B Medical, alleging that the Lunaflow and RESmart flow generators for its continuous positive airway pressure devices infringe a quartet of ResMed patents. The San Diego-based company wants the trade commission to ban the importation and sale of BMC’s allegedly offending devices in the U.S. Read more
3. FDA approves Biofrontera’s drug-device combo for sun-induced skin cancer
Biofrontera shares are up today after the said it won pre-market approval from the FDA for its drug-device combination treatment for a type of sun-induced skin cancer.
Leverkusen, Germany-based Biofrontera said the approval covers its Ameluz drug and BF-RhodoLED medical device for what it calls “photodynamic therapy” to treat mild to moderate actinic keratosis of the face and scalp. Read more
2. Shareholder sues as Cardiovascular Systems wins extension to settle kickbacks case
A Cardiovascular Systems shareholder sued the company in a derivative lawsuit this week, even as the medical device maker won an extension to negotiate a settlement in the very kickbacks case that prompted the derivative claim.
In the shareholder derivative suit filed yesterday, plaintiff Caroline Paradis alleged that Cardiovascular Systems and its management – including the late David Martin, the former CEO who stepped down after a stomach cancer diagnosis last year; Martin died May 1 – artificially inflated the company’s value with an off-label promotion scheme, even as executives sold portions of their stakes in CSI, according to the complaint filed in federal court in Minnesota. Read more
1. ConforMIS plunges on lowered outlook, search for new CEO
Shares of ConforMIS closed down nearly -8% yesterday and plunged another -40% in after-hours trading, after the medical device company lowered its outlook for the rest of the year and said it’s looking for a new CEO to replace founder Dr. Phillip Lang.
Losses widened 5.4% to -$15.0 million, or -37 per share, on sales of $20.3 million for the 3 months ended March 31 for Bedford, Mass.-based ConforMIS, for top-line growth of 37.8%. Read more
