CareFusion, the medical device spin-off company of Cardinal Health, has purchased Medegen, a needleless IV access product developer, for $225 million.
The acquisition will seek to expand CareFusion’s differentiated product and infection prevention portfolio to reduce catheter occlusions, the company said. The Medegen product lines will add to CareFusion’s products including the Alaris system and Guardrails safety software.
According to the San Diego-based CareFusion, catheter-related bloodstream infections have the potential to increase patient length of stay by 10 to 24 days, and almost 25 percent of the 250,000 incidents per year result in death. The company added that incidents of these infections cost $29,000 per patient case and noted that recently the Centers for Medicare & Medicaid Services ceased reimbursement for patient care related to these incidents.
Medegen's needleless IV products feature patented valve technology that enhance patient outcomes by assisting in the prevention of bloodstream infections and catheter occlusions, according to the company.
Under the purchase, the Ontario, Calif.-based Medegen employees will continue to be employed, according to CareFusion. The acquisition is expected to be complete by the end of the company’s 2010 fiscal year on June 30.