Cytocare Says It May Split Into Separate Entities : Management: Officials say they are considering spinoffs, joint ventures and other moves. Company stock rises sharply.

Cytocare Inc. stock rose dramatically Monday after the Irvine medical device maker said it may split into separate entities next year.

Company officials, hoping to increase shareholder value, announced that they are considering spinoffs, joint ventures and other moves that could affect several divisions and a subsidiary.

After the announcement, Cytocare stock climbed as high as $8.25 a share in heavy Nasdaq trading before retreating to close at $7 a share, up $1.12, or nearly 20%, for the day.

The proposal to split the company could affect subsidiary Medstone International Inc., the leading U.S. manufacturer of a shock-wave device used to break up kidney stones. It could also affect two operating divisions: Endourology, which makes a laser catheter to treat urinary problems; and Medical Biology, which has developed an antibody for prostate cancer.

“All these businesses can now stand alone, so they need to be evaluated,” said Errol G. Payne, Cytocare’s chief executive officer. “Right now we’re in a very critical assessment of our business objectives and the tax obligations” involved should the company be divided, he said.

Several previous upbeat announcements had already boosted the stock, which closed Friday with a 34% gain for last week.

On Thursday, the company said it had received a U.S. patent for its ProLase II side-firing laser catheter, which cuts urological tissue. The device was approved by the U.S. Food and Drug Administration in October, 1992. And on Friday, the company said it had isolated a new antigen--which prompts the body to produce disease-attacking substances--for prostate cancer.

For the first nine months of 1993, Cytocare posted a profit of $410,562, or 8 cents a share, on revenue of $10.5 million.

Cytocare Stock Soars

Cytocare’s share price rose sharply after company officials said Monday they may split the medical device company into separate entities. Monthly closing prices for this year and final Friday and Monday closing prices:

Jan.: $7.00 Feb.: 5.25 March: 5.63 April: 6.13 May: 6.38 June: 6.75 July: 4.63 Aug.: 5.00 Sept.: 3.33 Oct.: 4.00 Nov.: 3.50 Friday’s close: $5.88 Yesterday’s close: $7.00

Source: Dow Jones Information Retrieval