Stryker Corporation SYK
announced today a definitive agreement to acquire Patient Safety Technologies,
Inc. (PSTX) for $2.22 per share, with an aggregate purchase price of $120
million. Patient Safety Technologies conducts its business through its wholly
owned subsidiary, SurgiCount Medical, Inc. The company's proprietary
Safety-Sponge® System and SurgiCount 360(TM) compliance software help prevent
Retained Foreign Objects (RFOs) in the operating room, thereby improving
patient safety and reducing healthcare costs. The System includes bar-coded
surgical sponges and towels, an integrated barcode scanner, and compliance
tracking software. 2013 actual revenue through nine months are $14.9 million.
RFOs are the most common operating room "Never Event" in the United States.
Sponges are the most common retained object, with approximately 2,300
incidents reported annually at an average cost per incident of over $400,000.
The SurgiCount Safety Sponge System offers a way to eliminate unnecessary
costs from the healthcare system while improving quality of care.
Since its launch in 2006, SurgiCount has established a strong customer base of
over 300 hospitals including several of the leading medical institutions in
the U.S. The Safety-Sponge System will become part of Stryker's Instruments
division's offerings and will augment Stryker Instruments' broad portfolio of
products that are designed to optimize the perioperative experience by
reducing hazards, streamlining operations, and improving outcomes for patients
and caregivers.
"We are committed to providing solutions that result in a higher quality of
care and level of safety for both patients and healthcare professionals," said
Timothy J. Scannell, Group President, MedSurg and Neurotechnology. "This
acquisition aligns with Stryker's focus on offering products and services that
have demonstrated cost effectiveness and clinical outcomes."
The transaction is subject to customary closing conditions including approval
by the stockholders of Patient Safety Technologies and the expiration or
termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting
period. The transaction is expected to close in the first quarter of 2014.
About Stryker
Stryker is one of the world's leading medical technology companies and is
dedicated to helping healthcare professionals perform their jobs more
efficiently while enhancing patient care. The Company offers a diverse array
of innovative medical technologies including reconstructive implants, medical
and surgical equipment, and neurotechnology and spine products to help people
lead more active and more satisfying lives. For more information about
Stryker, please visit www.stryker.com.
About Patient Safety Technologies, Inc. and SurgiCount Medical
Patient Safety Technologies, Inc., through its wholly-owned operating
subsidiary SurgiCount Medical, Inc., provides the Safety-Sponge® System, a
solution proven to improve patient safety and reduce healthcare costs by
preventing one of the most common errors in surgery, retained foreign objects.
Additional information can be found at www.surgicountmedical.com.
Contacts
For media inquiries please contact:
Yin Becker, Stryker Corporation, 201-831-5000 or yin.becker@stryker.com
For investor inquiries please contact:
Katherine A. Owen, Stryker Corporation, 269-385-2600 or
katherine.owen@stryker.com
This press release contains information that includes or is based on
forward-looking statements within the meaning of the federal securities law
that are subject to various risks and uncertainties that could cause our
actual results to differ materially from those expressed or implied in such
statements. Such factors include, but are not limited to: weakening of
economic conditions that could adversely affect the level of demand for our
products; pricing pressures generally, including cost-containment measures
that could adversely affect the price of or demand for our products; changes
in foreign exchange markets; legislative and regulatory actions; unanticipated
issues arising in connection with clinical studies and otherwise that affect
U.S. Food and Drug Administration approval of new products; changes in
reimbursement levels from third-party payors; a significant increase in
product liability claims; the ultimate total cost with respect to the
Rejuvenate and ABG II matter; the impact of investigative and legal
proceedings and compliance risks; resolution of tax audits; the impact of the
federal legislation to reform the United States healthcare system; changes in
financial markets; changes in the competitive environment; our ability to
integrate acquisitions, including the acquisition of MAKO Surgical Corp. and
Patient Safety Technologies, Inc.; and our ability to realize anticipated cost
savings as a result of workforce reductions and other restructuring
activities. Additional information concerning these and other factors are
contained in our filings with the U.S. Securities and Exchange Commission,
including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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