DEVICE MANUFACTURERS: UROHEALTH MAKES ACQUISITION
Urohealth Systems Inc., a California-based manufacturer ofThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
products used in treating urological disorders, said Monday it
has agreed to acquire Richard-Allan Medical Industries Inc. for
$55 million in cash and stock, DOW JONES NEWS SERVICE/NEW YORK
TIMES reports (7/9). Michigan-based Richard-Allan makes
"disposable products for the gynecological and general-surgery
markets" (WALL STREET JOURNAL, 7/9). Urohealth Chairman and CEO
Charles Laverty said, "Current cost containment trends in health
care dictate the need for offering minimally invasive, cost-
effective treatments with shorter recovery times. Richard-Allan
will give Urohealth additional products to compete in this
rapidly changing environment."
MORE: The merged companies will maintain a 140-person sales
force that will target urologists, gynecologists and general
surgeons (Urohealth release, 7/8). Last year, Richard-Allan
generated about $21 million in sales (WALL STREET JOURNAL, 7/9).