MedGroup to Acquire Needle-Protection System

MedGroup Inc., an Encino-based operator of physical-, speech- and occupational-therapy centers, said it agreed to acquire Medidea Inc.’s hypodermic-needle-protection system, which is used to prevent accidental transmission of AIDS, hepatitis and other viruses.

The agreement calls for Med-Group to provide 10,000 shares of MedGroup common stock to Medidea and issue an additional 90,000 shares within 90 days. Medidea will also receive a 5% royalty based on gross sales of the needle-protection system.