CareFusion to Acquire Medegen – Analyst Blog

CareFusion Corporation (CFN) has decided to acquire Medegen for $225 million in cash. CareFusion expects the acquisition to be neutral to the adjusted earnings per share in the first year of operations and increasingly accretive thereafter. The acquisition is expected to be completed by June 30, 2010.

 

Medegen is a leading innovator in infusion therapy which consists of clinically differentiated needle-less access valves and administration sets that deliver intravenous (IV) medication to patients.

 

We believe Medegen would be a ‘strategic fit’ for CareFusion and it will be able to fully integrate Medegen’s operations. Both CareFusion and Medegen have matching infusion product lines and R&D investments. Furthermore, CareFusion’s products are also backed by clinical evidence and differentiation.  

 

CareFusion is a medical technology company formed by the spin-off of the Clinical and Medical Products business of Cardinal Health Inc. (CAH). The spin-off was completed in 2009 through a pro rata distribution of roughly 81% of CareFusion’s common stock.

 

CareFusion is a market leader in IV infusion devices. Its products are marketed under the brand names Alaris and Guardrails. Medegen markets clinically proven, needle-free IV disposable products under the brand name, MaxPlus and MaxGuard. 

 

Both CareFusion and Medegen products are designed to help hospitals reduce catheter-related blood stream infections and catheter occlusions. It has been tested that catheter-related blood stream infections increase a patient’s hospital stay by 10 to 24 days, with roughly 25% of cases resulting in death. Medegen products lower these infections up to 70%.