Chad Therapeutics Inc. moved one step closer last week to exiting the pulmonary oxygen business that made its name.
Shareholders approved the $5.25 million sale of CHAD’s money-losing oxygen conserving business to Inovo Inc., a privately held competitor in Florida. The transaction is expected to close Feb.15.
Oxygen conservers help patients with lung diseases such as emphysema breathe, but Chief Executive Earl Yager believes sleep disorders are the future for the Chatsworth-based medical device company.
Though the company doesn’t yet have such a product on the market, CHAD recently filed an application with the U.S. Food and Drug Administration for clearance to begin marketing a monitor for sleep apnea, a condition that interferes with breathing while sufferers are sleeping.
“We believe that our sleep products offer unique features that can improve the diagnosis and treatment of obstructive sleep apnea,” Yager said. The company last August completed a $3.5 million private financing to help fund the new strategic direction.
Chad, which was named one of Deloitte & Touche’s Los Angeles’ fastest growing technology companies in 2005, has had trouble growing revenues in its oxygen therapy business line because of lower Medicare reimbursement rates.
Health Reform Reset
Last week, Gov. Arnold Schwarzenegger’s $15 billion health care reform bill crashed and burned in the Senate Health Committee.
Now, to get a feel for the direction of health care reform monitor Super Tuesday returns for Proposition 93, which would extend term limits but is expected to fail.
Schwarzenegger’s last term in office won’t be affected by Prop. 93, but the composition of the Democratic legislative leadership he’ll need to work with likely will be.
Assembly Speaker Fabian Nunez, who worked closely with Schwarzenegger on health care reform, and Senate President Pro Tem Don Perata, who questioned it because of the state’s $14.5 billion deficit, both will have to leave office at the end of their current terms if the proposition fails.
That means the governor will have some new legislative leaders to deal with and may take a piecemeal approach to reform, at least initially.
“I think we could get kids coverage this year and maybe some market reforms like to help individuals with pre-existing conditions get coverage,” said Jamie Court, consumer advocate and president of the Santa Monica-based Foundation for Taxpayer and Consumer Rights. “But the governor may have to work with some different leaders.”
David Fleming, outgoing board chairman of the Los Angeles Area Chamber of Commerce, agrees that Schwarzenegger may also restart small later this year, but eventually will be back with another comprehensive plan before leaving office in 2010. “He wants this as part of his legacy,” said Fleming, who is spearheading formation of the Los Angeles County Business Federation, a pro-business advocacy group.
Happy Blood-day
Tiffany Hansen-Laffitte is in the business of coordinating the community drives that supply blood to Providence Health System’s two San Fernando Valley facilities.
Every unit of blood she can draw from a local workplace, church and high school means one less bag Saint Joseph and Holy Cross hospitals have to buy from the Red Cross.
Now add birthday parties to the mix.
A young actress-comedian who lives near Burbank-based Saint Joseph held a most unusual blood drive last week at her 30-something birthday party.
With the ongoing writer’s strike making finances tight for many in her circle, Katie Ward had told her friends not to bring her any expensive gifts. But knowing they would feel guilty about it anyway, she wracked her brain about how she could have a great party. Driving by the hospital one day solved her problem: donate blood in lieu of a gift.
“This was real outside-the-box thinking on Katie’s part,” said Hansen-Laffitte, noting that the 26 units the party donated was better than many workplace drives. “December and January are two of our toughest months of the year.”
Staff Reporter Deborah Crowe can be reached at (323) 549-5225, ext. 232, or at [email protected]
