A major figure in a play to repeal a federal tax on medical device makers’ revenue is coming to Orange County in October.
Rep. Erik Paulsen, a Minnesota Republican who co-chairs the Congressional MedTech Caucus, is a featured speaker at a medical device and investor forum put on by Octane, an Aliso Viejo-based booster group for startup companies. The forum runs Oct. 10 and 11 at the Hyatt Regency Irvine.
Paulsen is the main sponsor of HR 436, the proposed Defend Medical Innovation Act. His district is in the Twin Cities, home to a number of device makers. Several local Republicans in the House signed on as co-sponsors including John Campbell—who represents Irvine and parts of Newport Beach and South County—and Edward Royce, who represents part of North County.
Paulsen originally introduced HR 436 in 2010 and brought it back in January 2011.
HR 436 passed the GOP-controlled House in June and is now in the Senate.
The 2.3% tax on medical device makers’ revenue is scheduled to start in January. It is designed to raise more than $20 billion across a 10-year period to pay for federal healthcare reform.
The forum also will feature an ophthalmology industry update with William Link, a Newport Beach-based managing director with Versant Ventures, and Roger Steinert, director of the Gavin Herbert Eye Institute at the University of California, Irvine. There will also be time for device makers to meet up with potential investors.
In a separate upcoming medical industry event, the Hoag Hospital Foundation will present the Forum on Healthcare 2012 on Oct. 15, also at the Hyatt. The foundation will focus on healthcare reform and how medical professionals and employers can manage its impact, as well as rising healthcare costs.
Participants will include David Lansky, chief executive of the Pacific Business Group on Health. The San Francisco-based organization is a coalition of large healthcare purchasers including Wells Fargo & Co., and the University of California. Richard Afable, chief executive of Hoag Memorial Hospital Presbyterian, will join Lansky in a panel discussion.
Michael Mussallem, chief executive of Irvine-based heart valve maker Edwards Lifesciences Corp., is the meeting facilitator.
Hoag, which the foundation helps support, said last month it was teaming with Orange-based St. Joseph Health to create an integrated regional health network.
Alliance Outlook
Imaging and cancer-care provider Alliance HealthCare Services Inc. of Newport Beach received an upgrade from Standard & Poor’s Ratings Services toward the end of August.
S&P raised its rating on the medical imaging and oncology provider to “stable” from “negative.” The rating agency said that Alliance has stabilized its business despite a tough industry environment.
The agency also raised Alliance’s senior secured issue-level rating to BB- from B+ and what it calls its recovery rating from 2 to 3.
A recovery rating of 3 means investors would have a 70% to 90% chance of recovering their money in case of a default, according to S&P. The agency raised the recovery rate for Alliance because of a drop in the estimated amount of the company’s senior secured debt that would be outstanding if it defaulted.
Alliance’s recovery steps have included closing unprofitable sites, improving their mobile operations’ efficiency and cutting costs.
S&P expects that Alliance will continue to grow its profit while it continues to repay debt. Alliance’s shares saw a recent run-up after it cut some debt and announced that cost-cutting had generated $33 million in annualized savings, surpassing a goal.
Cortex Buy
Irvine drug developer Cortex Pharmaceuticals Inc. said it bought Pier Pharmaceuticals Inc. of Louisville, Colo., last month. Financial terms weren’t disclosed.
Pier becomes a wholly owned subsidiary of Cortex under the deal. It is developing dronabinol, which belongs to a class of chemicals called cannabinoid agonists and is being targeted toward obstructive sleep apnea patients. Cortex said a pending clinical study of dronabinol is entirely funded by a National Institutes of Health grant totaling nearly $5 million.
Cortex said the company will focus entirely on developing drugs for brain-controlled breathing disorders. The company also has CX1739, which is being looked at for respiratory depression as well as sleep apnea.
Bits and Pieces
St. Joseph Health expanded a relationship with Atlanta-based hospital buying group MedAssets Inc., while renewing subscriptions for MedAssets’ spend and clinical resource management technology. … First Choice Physician Partners, an Anaheim medical group affiliated with Dallas-based Tenet Healthcare, appointed former Blackhawk Management Group executive James Rodriguez as chief executive. … Amen Clinic in Newport Beach opened locations in New York and Atlanta. … Amen patient Terry Bradshaw was mentioned on the Grantland sports website in a story about traumatic brain injuries in the National Football League. The Pittsburgh Steelers’ Hall of Fame quarterback gets treatment for short-term memory loss at the Amen Newport Beach location.
