CardioTech International Inc. has sold its Catheter and Disposables Technology Inc. business to TACPRO Inc. for $1.2 million.
TACPRO is a medical device and design company specializing in catheters and delivery systems. CardioTech makes advanced materials and medical devices for the treatment of cardiovascular and other diseases.
About $240,000 of the purchase price will be held in a one-year escrow to fund any post-closing obligations to TACPRO, CardioTech said. Wilmington-based CardioTech will realize 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 Michael Adams, CardioTech president and CEO.
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 specialized materials to medical device manufacturers," Adams said.
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 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 and CEO of TACPRO, the acquisition of the CardioTech subsidiary gives TACPRO the opportunity to expand its presence in the Midwest.
CardioTech bought Catheter and Disposable Technology and its 15,000-sq.-ft. Plymouth, Mass., plant in mid-2001 from Colorado MedTech
Inc., with the aim of moving into component production.