Cardium acquires InnerCool Therapies

By Ted A. Knutson

Washington, March 9 - Cardium Therapeutics, Inc. said Thursday it acquired InnerCool Therapies Inc., a San Diego-based medical technology company focused on the emerging field of therapeutic hypothermia.

InnerCool develops, manufactures and markets endovascular, catheter-based therapeutic systems designed to rapidly and controllably cool the body. InnerCool's Celsius ControlSystem is being used in surgical and intensive care hospital units.

InnerCool's endovascular catheter-based system has received Food and Drug Administration 510(k) clearance for use in inducing, maintaining and reversing mild hypothermia in neurosurgical patients, both in surgery and in recovery or intensive care. The system has also received FDA clearance for use in cardiac patients in order to achieve or maintain normal body temperatures during surgery and in recovery/intensive care, and as an adjunctive treatment for fever control in patients with cerebral infarction and intracerebral hemorrhage.

Under the terms of the transaction, which is structured as an asset purchase, Cardium will issue to InnerCool 2.5 million shares of Cardium common stock representing less than 8% of the company's outstanding shares after giving effect to the acquisition. Cardium will also assume about $560,000 in outstanding liabilities.

InnerCool investors would also be entitled to a one-time product success payment of $5 million upon full calendar year revenues from the commercial sale of InnerCool products exceeding $20 million. The contingent payment based on product sales would be payable in cash or Cardium common stock at Cardium's election.

"Furthering Cardium's business strategy of developing important new products for the treatment of cardiovascular disease, our InnerCool acquisition brings a cutting-edge medical device business to complement and leverage our biologics approach to treating heart disease," said Christopher J. Reinhard, chairman and chief executive officer of Cardium, in a press release.

Cardium is a San Diego-based medical technology company primarily focused on the development, manufacture and sale of new and innovative therapeutic products for the interventional cardiology market.

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