Irvine-based Sabra Health Care REIT Inc. continues its march toward the denouement of its long-running challenge with a major tenant.
The company said late last month that the U.S. Bankruptcy Court approved bidding procedures and an auction for the sale of FPMC Fort Worth Realty Partner LP’s real estate. FPMC borrowed money from Sabra as part of a loan the real estate investment trust made to build the hospital.
Arlington, Texas-based nonprofit Texas Health Resources has agreed to buy Forest Park Medical Center Fort Worth and nearby medical offices for $112 million. The bankruptcy court approved the “stalking horse” bid in the auction.
Any other bidders must submit by May 10, and if others are received, the auction is scheduled for May 12, Sabra said in a news release. The bankruptcy court will hold a hearing May 19 to approve the sale to the successful bidder.
“The outcome is happening, as we have consistently said it would,” said Sabra Chief Executive Rick Matros. “Whether the stalking horse bid wins or not, we expect that the proceeds generated from the sale of the Fort Worth real estate will result in an approximately 12% return on our investment in the Fort Worth hospital.”
Sabra noted that it’s owed $60.8 million in principal balance and $8.8 million in accrued and unpaid interest and fees. It said it plans to use the proceeds it receives from bankruptcy proceedings to make additional payments on its revolving credit line.
OC Abbott Unit Praised
Abbott Laboratories Chief Executive Miles White singled out Abbott Medical Optics, a Santa Ana-based unit of the diversified device maker with its headquarters in Chicago, as a solid performer in the company’s recently completed first quarter.
Abbott Medical makes devices used in various eye surgeries, plus contact lens care products. The unit accounted for $269 million in sales in the quarter, up 5.5% over a year ago and 5% of Abbott Laboratories’ total first-quarter sales of $4.9 billion.
The ophthalmic unit “[continues] to capture share and drive growth in our portfolio of recently launched premium cataract lens products,” White said.
Abbott Medical recently opened a manufacturing facility in Malaysia as a response to its growth, White said. He noted that the plant is “capable of producing over 4 million lenses a year to meet the growing demand for our products.”
Endologix Presents Device
Irvine-based medical device maker Endologix Inc. presented data from a doctor-initiated study of its Nellix EndoVascular Aneurysm Sealing System device used with aortic branch stent grafts for treating patients with complex abdominal aortic aneurysms.
Dr. Matthew Thompson, professor of vascular surgery at St. George’s Vascular Institute in London, presented the data during the 38th annual Charing Cross International Symposium last month in London.
Data covered 154 patients, and highlights included 94% aneurysm-related and 90% overall survival rates at 12 months follow up after treatment. The device was used in patients with single, double, triple and quadruple branches of abdominal aortic aneurysms.
“As anticipated, early data from the [study] confirms Nellix’s ability to treat AAA patients with a wide range of complex anatomies,” Thompson said in a news release.
Endologix Chief Executive John McDermott added that more than a third of abdominal aortic aneurysm patients have complex anatomies and that Nellix has the potential to offer those patients treatment.
Nellix is approved for investigational use only in the U.S.
Lombard Medical in London
Irvine-based Lombard Medical Inc.’s Altura and Aorfix stent grafts for repairing abdominal aortic aneurysms were featured during the Charing Cross symposium.
Altura, which has European regulatory approval, is designed to simplify treatment of abdominal aortic aneurysm patients with standard anatomy, Lombard said. Aorfix, which received Food and Drug Administration approval last year, is designed for use in patients with aortic neck angulations of up to 90 degrees.
Lombard also showcased its IntelliFlex LP delivery system for placing the stents inside patients. IntelliFlex is expected to receive European regulatory approval during the current quarter.
Charing Cross “is a great platform” to showcase Lombard’s endovascular aneurysm repair portfolio, Chief Executive Simon Hubbert said.
Reve Buys Cancer Therapy
San Clemente-based Reve Technologies Inc. said it acquired a license for a cancer immunotherapy from Cantech Pharma Inc. and some of its majority shareholders.
Reve said in a news release that its deal will eventually lead to it getting 100% ownership of Cantech.
Reve also made some management changes as part of the agreement. Diana Zhabilov is now its president and board chairman, and Harry Zhabilov is its new chief scientist. Chief Executive Dennis Alexander and Chief Financial Officer and Secretary Joanne Sylvanus continue in their positions, and Valentine Dimitrov will be appointed to Reve’s board after the deal closes.
Peregrine Treatment
Tustin-based drug developer Peregrine Pharmaceuticals Inc. presented preclinical data showing the enhanced therapeutic benefits of combining its bavituximab antibody with therapies that block pathways shielding tumor cells from immune system components poised to fight cancer. Peregrine presented its data at the American Association for Cancer Research’s annual meeting in New Orleans.
