Wilmington, Massachusetts - CardioTech International Inc. has sold its Catheter and Disposables Technology Inc. subsidiary (CDT) to TACPRO Inc. for $1.2 million.
TACPRO is a medical device and design company specialising in catheters and delivery systems, while CardioTech makes advanced materials and medical devices for the treatment of cardiovascular and other diseases.
Some $240 000 of the purchase price will be held in a one-year escrow to fund any post-closing obligations to TACPRO. CardioTech said it will realise about $734 000 in cash from the sale.
"The sale of CDT provides TACPRO Inc. an excellent opportunity to expand its operations into the Minnesota medical device region," said CardioTech president and ceo Michael Adams, in the company's 31 March announcement.
CardioTech wants to focus on customer-driven solutions in the medical device industry, and the CDT sale will allow capital to be put into "our growth initiatives focused on licensing and selling specialised materials to medical device manufacturers," Adams added.
CardioTech makes a proprietary Chronoflex brand polyurethane for medical uses such as cardiac implants, urethane covered stents to treat cardiovascular disease and tissue engineering uses. The company is currently conducting clinical trials for regulatory approval in Europe for its CardioPass synthetic coronary bypass graft, and generates revenues from selling medical devices and materials, and from contracted product design and development.
According to Nitin Matani, president/ceo ofTACPRO, "CDT represents an opportunity for TACPRO to expand its presence in the Midwest region. The acquisition of CDT is the first step in achieving our strategic growth objective."
Cardiotech bought polyurethane medical part maker CDT and its Plymouth, Massachusetts, plant in mid 2001.