Luther Medical Products Inc.: The Tustin-based company...

Luther Medical Products Inc.: The Tustin-based company on Friday rejected an earlier, unsolicited acquisition bid by MedChem Products Inc. as “inadequate.”

Luther, which on Sept. 15 reported receiving MedChem’s $3.50 to $4 per share bid, determined during a Friday board meeting that the offer “would not be in the best interest of our shareholders,” said David Rollo, Luther president and chief executive.

MedChem in Woburn, Mass., which competes with Luther Medical in certain parts of the catheter market, had offered a combination of cash and MedChem stock. In September, MedChem set the price of its unsolicited offer at $9.8 million to $11.2 million.

MedChem also said that the deal would let MedChem take advantage of “natural synergies” between Luther and MedChem’s San Antonio, Tex.-based Gesco catheter subsidiary.

Luther’s shares fell 6.25 cents to $3.31 in Nasdaq trading Friday. While the stock has been hovering under $4 in recent months, Luther traded as high as $10 in 1992. The company recently reported a $961,923 loss on revenue that was down 18% to $2.3 million for the fiscal year ended June 30.