Medical software maker Quality Systems Inc. and a dissident shareholder have kissed and made up.
Irvine-based Quality said earlier this month it struck a deal with director Ahmed Hussein, an Egyptian businessman who owns 17% of the company. The deal ends Hussein’s lawsuit over the election of directors at Quality’s 2005 annual meeting.
The settlement calls for Quality’s board to increase to nine from eight members. Quality also said management and Hussein have agreed on a proposed slate of directors.
Quality Chairman Sheldon Razin said he was happy that the deal had been reached. He said he was looking forward “to working with the entire board in a collegial manner to focus on continued growth and share value.”
Hussein echoed that sentiment, saying the settlement allows he and Quality management to move forward for the good of the company.
That’s a far cry from last fall, when Hussein led a spirited proxy fight against Quality.
He claimed executives were making too much money and that insiders dominated the board.
Quality shareholders elected two members of Hussein’s slate,himself and Ibrahim Fawzi.
Six of the company’s nominees won seats.
Razin, Chief Executive Louis Silverman, Patrick Cline, Maurice DeWald, Vincent Love and Steven Plochocki were winners on the management slate.
Losing out were William Botts and Jonathan Javitt, a pair of management-backed candidates. Dissident candidate Ian Gordon also lost.
The proxy fight even led to some colorful dialogue between Hussein and Silverman at Quality’s annual meeting a year ago. Hussein kicked off the back-and-forth by charging that Quality’s decision to cut its board size in early 2005 changed his ability to elect directors.
“That’s out of order,” Silverman said.
“I challenge the company,” Hussein replied.
“That’s off-topic,” Silverman said.
Quality makes software that doctors and dentists use to manage their practices. The company’s business is booming amid a transition from paper to electronic medical records.
Device Maker Gets Funding
Sutura Inc., a Fountain Valley medical device maker, said it entered into a deal with Whitebox Advisors LLC of Minneapolis to finish a $4.1 million round of financing.
The deal includes $2.1 million that recently was invested in Sutura, along with a commitment to invest another $2 million later.
The funding brings the total invested in Sutura by Whitebox to $20.7 million, said Dave Teckman, a Whitebox director.
Sutura, which is traded on the over-the-counter bulletin board exchange, said that it plans to look for distribution partners in an effort to increase sales of its SuperStitch, its core vascular device, Chief Executive Anthony Nobles said.
SuperStitch is designed to fix punctures created in arteries during open surgery and catheter-based surgical procedures.
The company also is “implementing several improvements to the product that are intended to lessen the learning curve process and improve product performance,” Nobles said.
Biotech Work Force Project Starts
The Orange County Workforce Investment Board has started a project that it says will train current and prospective workers at some of the county’s drug makers, device makers and hospitals.
Targeted companies include Advanced Medical Optics Inc. of Santa Ana; Beckman Coulter Inc. of Fullerton, Irvine-based Edwards Lifesciences Corp. and St. Joseph Health System of Orange.
Funding includes part of a $1 million grant from the Department of Labor, as well as almost $800,000 from matching and in-kind contributions from project partners.
UC Irvine Extension is going to provide the training program.
Biotechnology is one of the county’s “most pressing work force development needs,” according to project officials. The goal is to address gaps in skill and develop training to address employers’ needs.
The work force board works with the Board of Supervisors to oversee work force development programs.
Bits and Pieces:
BioLase Technology Inc. of Irvine named Henry Schein Inc. of Melville, N.Y., as its North American distributor. BioLase said it would collaborate with Schein in the marketing, sales and service of all of BioLase’s dental laser system products Blue Shield of California, which has about 240,000 members among its various health plans in OC, won a contract from the Motion Picture Industry Health Plan to serve its indemnity plan participants. The Motion Picture Industry Health Plan, a healthcare trust fund established through collective bargaining among unions and employers in the film industry, has more than 110,000 total members. Blue Shield said around 20% of the trust’s membership reside in OC A pair of Irvine-based healthcare companies updated their investors earlier this month. Shelley Thunen, chief financial officer of IntraLase Corp., appeared at the Bank of America 2006 Specialty Pharmaceuticals Conference in Southampton, N.Y. Russell Skibsted, senior vice president and chief business officer of Spectrum Pharma-ceuticals Inc., presented a corporate overview and update last week at the California Stock Report’s investor conference at the Hyatt Regency Irvine.
