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Kensey Nash Buys Synthes'' Norian Unit for $22 Million

May 25, 2011
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According to the Associated Press, medical device company Kensey Nash Corp. said Tuesday it acquired the assets of bone cement maker Norian for $22 million in cash. Kensey Nash is acquiring Norian from Synthes, which is itself being bought by health care giant Johnson & Johnson for $21.3 billion. Kensey Nash said it expects to get about $1 million in revenue from Norian in its fiscal fourth quarter, which ends June 30. It expects the deal to boost its fiscal 2012 profit by 15 cents per share and its revenue by $14 million. Kensey Nash will take over manufacturing of Norian''s products, and Synthes, a Swiss company, will distribute them. In morning trading, shares of Kensey Nash rallied $1.98, or 8.1 percent, to $26.39. Synthes agreed to sell Norian last year as part of the settlement of an illegal marketing case. In 2010, Synthes plead guilty to criminal charges related to unauthorized testing of a Norian product that is used to fill bone defects. Norian trained surgeons to use the product on patients who were having spinal surgery. Three patients died on the operating table before the testing was stopped. In 2010, Norian and Synthes agreed to pay $23 million in fines—the maximum amount—for failing to report the deaths to the Food and Drug Administration, and for lying to investigators. The unauthorized tests involved about 200 patients between 2002 and 2004.

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