Cardium Therapeutics, Inc. has acquired InnerCool Therapies, Inc., a San Diego-based medical technology company focused on the emerging field of therapeutic hypothermia. InnerCool develops, manufactures and markets endovascular, catheter-based therapeutic systems designed to rapidly and controllably cool the body. InnerCool's Celsius Control System is currently being used in surgical and intensive care hospital units.

Under the terms of the transaction, which is structured as an asset purchase, Cardium will issue to InnerCool 2.5 million shares of Cardium common stock (which represents less than 8% of the company's outstanding shares after giving effect to the acquisition) and will assume certain outstanding liabilities (totalling approximately five hundred sixty thousand dollars plus transaction costs and vacation accrual). Cardium will operate the acquired business through its newly-formed wholly-owned Delaware subsidiary, InnerCool Therapies, Inc.

According to the company release, InnerCool's endovascular catheter-based Celsius Control System has received FDA 510(k) clearance for use in inducing, maintaining and reversing mild hypothermia in neurosurgical patients, both in surgery and in recovery or intensive care. The system has also received FDA clearance for use in cardiac patients in order to achieve or maintain normal body temperatures during surgery and in recovery / intensive care, and as an adjunctive treatment for fever control in patients with cerebral infarction and intracerebral haemorrhage. InnerCool has also received a CE mark allowing the Celsius Control System to be marketed in the European Community, and a TGA approval allowing the system to be marketed in Australia.

The American Heart Association (AHA) recently revised its treatment guidelines to recommend the use of therapeutic cooling as part of the critical care procedures for patients with an out-of-hospital cardiac arrest following ventricular fibrillation. Studies for additional indications with InnerCool's system are expected to be conducted in collaboration with the AHA and with the National Institutes of Health (NIH), stated the release.

"Furthering Cardium's business strategy of developing important new products for the treatment of cardiovascular disease, our InnerCool acquisition brings a cutting-edge medical device business to complement and leverage our biologics approach to treating heart disease," commented Christopher J. Reinhard, chairman and chief executive officer of Cardium Therapeutics.

Reinhard added that, "Our initial acquisition of cardiovascular growth factor therapeutics from the Schering AG Group, Germany was completed during the fourth quarter of last year, and our acquisition of InnerCool Therapies now represents an important additional step forward. Over $250 million has been invested to develop the products and technologies that we have acquired and now control, and we expect to leverage those investments through additional collaborative studies such as those involving the AHA and the NIH."