HealthTronics gains exclusive control of HMT's urology devices

Austin Texas, USA. Following the bankruptcy of Swiss company High Medical Deveices (HMT),  HealthTronics, Inc. has acquired all of its patents and other intellectual property for its urological devices. The acquisition ensures HealthTronics' exclusive ownership and control of the patents, trademarks and manufacturing rights pertaining to the LithoDiamond and LithoTron lithotripters and the patent-protected electrodes utilized by these devices. The acquisition gives HealthTronics flexibility to locate production in a cost-efficient environment and also enables market-specific modifications to the devices that can pave the way for greater sales opportunities in international markets.

In January 2005, HMT filed for bankruptcy in Switzerland after HealthTronics (which then owned a minority of the economic interests in HMT) elected to discontinue future funding of HMT's operations with the goal of defining control of HMT's technology. Following the bankruptcy filing, HealthTronics acquired HMT's commercial bank debt at a substantial discount to become HMT's largest creditor. HealthTronics was able to acquire HMT's intellectual property at a favourable price that ensures a quick return of its invested capital and should enhance operating margins in its Medical Device Division.

Christopher B. Schneider, President of HealthTronics' Medical Device Division, stated, "Our physician partners and customers drove our decision to acquire these technologies. Since January, we have seen continued strong global demand for new LithoDiamond systems and consumable electrodes for the existing installed base. Most importantly, our role as the leading provider of lithotripsy services and equipment in the United States was the key to our success in securing exclusive control of these technologies at a very attractive cost."

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