UPDATE 1-Thoratec terminates ITC sale deal with Danaher

Tue Jul 27, 2010 9:12am EDT

* ITC to remain discontinued operation

* Cos unable to reach agreement over closing conditions

July 27 (Reuters) - Cardiac-device maker Thoratec Corp (THOR.O) said it terminated a deal to sell its unit, International Technidyne Corporation (ITC), to industrial conglomerate Danaher Corp (DHR.N).

The termination by mutual agreement with Danaher was due to the failure of the companies to agree about the status of certain aspects of ITC's quality system and regulatory filings, Thoratec said in a statement.

In addition, during the period since the agreement was signed, the launch of ITC's ProTime InRhythm in the U.S. has been delayed as the U.S. Food and Drug Administration did not give regulatory approval for the product, Thoratec said.

ProTime InRhythm is a device to measure the clotting ability of blood.

The failure to get approval from FDA resulted in a disagreement between the companies on whether the closing conditions of the deal had been met.

Thoratec said ITC intends to file for a new marketing application for InRhythm by the end of the year.

ITC, which makes point-of care blood testing and skin incision products, will be listed as discontinued operations in Thoratec's results.

In April, Thoratec had agreed to sell its ITC division to Danaher for $110 million in cash upon closing. [ID:nWNAB1909]

Shares of the company dropped 2 percent to $43.01 in pre-market trade. They closed at $44.01 Monday on Nasdaq.

(Reporting by Shailesh Kuber in Bangalore;Editing by Prem Udayabhanu)

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