Safeguard scores profit from portable-testing deal

Safeguard Scientifics, Wayne, says it and other investors have sold portable medical testing developer Alverix Inc., of San Jose, to Becton, Dickinson & Co., Franklin Lakes, N.J., for $40 million. After deducting its costs, Safeguard says it will pocket around $17.4 million,1.9 times the value of Safeguard's $9.4 million investment in the company since 2007, when Alverix was separated from parent Avago Technologies. Alverix employs 18 in California and Malaysia. (That would work out to an annualized return above 9% a year if the investment had all been made upfront; some of the money went in later, so the company can claim a higher return.)

Safeguard bet on Alverix "with the notion that high performance near-patient testing was a significant market opportunity," said Dr. Gary J. Kurtzman, Safeguard's managing director for healthcare and Alverix's board chairman. Alverix systems, "based on low-cost optoelectronic components and sophisticated detection algorithms, proved that laboratory quality results could be achieved at the point of care," he added. Becton Dickinson has been "co-developing" the trademarked BD Veritor testing system with Alverix and its president, Richard C. Tarbox III, so it was a "natural acquirer" for the firm, Kurtzman concluded.

Safeguard says it was a 49% owner at the time of sale. Alverix was Safeguard's third "exit" in the past month, noted chief executive Stephen T. Zarrilli. Endo Health Solutions of Chester County purchased Conshohocken-based NuPathe, though at a price below its former trading value. PTC of Boston bought ThingWorx, of Downingtown, for $112 million (or $130 million if it meets sales targets).