Laser Medical Drops Bid for Laser Biotech

After briefly considering plans to acquire a Los Angeles biotechnology firm, Laser Medical Technology Inc. announced Friday that it has dropped out of the bidding war.

On Monday, the San Clemente company offered to buy all of the common stock of Laser Biotech Inc., which holds a patented treatment for eye surgery. That came several months after another company--Sunrise Technologies Inc., based in Fremont in Alameda County--had signed a letter of intent to acquire Laser Biotech’s common stock.

Sunrise offered to exchange about 498,000 of its shares to acquire Laser Biotech. Laser Medical had offered 1.87 million of its common shares for Laser Biotech’s shares. Both deals were valued at $9 million to $10 million.

Laser Medical manufactures and markets a laser device used in dental surgery. Sunrise, one of its major competitors, also makes laser systems with dental applications.

“It is our understanding that the directors of Laser Biotech were more comfortable with their established relationship with Sunrise Technologies Inc.,” Francois Levy, chief executive of Laser Medical, said in a statement.

Stephen Prairie, chief financial officer for Sunrise, said his company and Laser Biotech reached agreement Friday on their merger.

Both Laser Medical and Sunrise have been interested in obtaining Laser Biotech’s patent for a laser procedure that reshapes the cornea to correct astigmatism, nearsightedness and farsightedness.

“We think that it will be very successful,” Prairie said.