Cardinal Health Partners, a new venture capital fund for early-stage healthcare companies, expects to invest $15 million annually in the next four years. Princeton, N.J.-based Cardinal already has raised $50 million of investment capital from a variety of institutional investors and expects to close the fund at $60 million this month. Cardinal was launched by general partners John Clarke and John Park (formerly of Princeton-based DVS Partners, an early-stage technology and healthcare venture fund) and Brandon Hull, who had been head of healthcare investing for the Edison Venture Fund, Lawrenceville, N.J. Within healthcare services, the firm will target disease management and specialty-care companies, healthcare information technology firms and next-generation managed-care companies. The partners expect to invest $2 million to $4 million per company. Cardinal closed its first investment Aug. 5 of $1 million in HealthKnowledge Corp., a Seattle-based physician intranet service provider. It has two deals pending.
U.S. Surgical Corp. says the Food and Drug Administration has cleared for marketing its novel surgical stapler for quickly connecting small blood vessels, such as coronary arteries in heart bypass surgery. The device simultaneously applies 12 titanium clips to attach vessels in two minutes instead of 20 to 25 minutes typical for hand suturing. Norwalk, Conn-based U.S. Surgical expects to begin selling the One-Shot instrument during the first quarter of 1998. Pricing has not been determined. The company says the device has particular potential for simplifying minimally invasive bypass surgeries.
Capstone Capital Corp., a Birmingham, Ala.-based real estate investment trust, says it has invested $26.1 million in three healthcare facilities. Capstone bought 89-bed HealthSouth Greater Pittsburgh Rehabilitation Hospital in Monroeville, Pa., for $15 million and purchased a diagnostic clinic in Birmingham for $2.1 million. Birmingham-based HealthSouth Corp. leases both facilities. Capstone also purchased Suburban Heights Medical Center, an integrated delivery facility in Chicago Heights, Ill., for $9 million. Birmingham-based MedPartners leases Suburban Heights. Capstone has investments in 130 healthcare properties in 21 states.
