Trimedyne, Baxter Division Make Marketing Pact

Financially struggling Trimedyne Inc. said Monday that it has signed an agreement with a division of the giant Baxter Healthcare Corp. for exclusive worldwide marketing of Trimedyne fiber-optic catheters used in laser surgery.

A Trimedyne official described the agreement as “very significant” but declined to disclose financial terms of the deal.

Under the agreement, Baxter’s V. Mueller division will distribute the catheters, said Joe Atchison, Trimedyne chief financial officer. Atchison said the endorsement by Baxter, one of the nation’s largest health-care companies, of Trimedyne’s product should help sales. Several other companies manufacture similar products.

Fiber-optic catheters are used with lasers for a wide variety of surgical procedures. Several months ago, the catheters received federal approval to be marketed for use in gallbladder removal.

“We believe the relationship with Baxter will help tremendously in the sale of catheters, and . . . should also increase our laser sales,” said Dick Demmer, Trimedyne executive vice president. Demmer said the same lasers used to open clogged arteries can also be used with fiber-optic catheters for general surgery.

Sales of Trimedyne’s original product, the so-called “hot-tip” laser used to open clogged blood vessels, have been falling. The drop began after it became apparent that the device, which received federal marketing approval for use in opening clogged arteries in the legs, would face difficulty gaining federal approval for use in the heart.

Trimedyne lost $6.2 million on revenue of $10.2 million for the first nine months of fiscal 1990, contrasted with net earnings of $929,000 on revenue of $26.6 million for the period a year ago.

Trimedyne said the sales distribution agreement with Baxter is for three years and will automatically renew for successive two-year periods if sales volume goals are met. The devices will be sold through Baxter’s worldwide network of 900 salespeople, Trimedyne said.