The deal ends uncertainty for the 60 employees at loss-making Eurocut's Newhall Road premises and should bring in £500,000 for former owner The Medical House, enabling it to clear its bank debt.

Eurocut becomes part of Sandvik Medical Solutions, which acquired another Sheffield-based orthopaedic implant and instrument manufacturer - Doncasters Medical Technologies - in June last year.

Sandvik Medical Solutions employs 290 people at plants on Parkway Close and Penistone Road and plans to retain Eurocut's existing premises in the medium term.

David Beighton, vice-president and general manager of Sandvik Medical Solutions' European operations, said: "This deal provides Sandvik Medical Solutions in Europe with a good platform upon which we can build a significant presence in the precision machining of orthopaedic implants and instruments.

"We believe that Sandvik's extensive knowledge within the machining sector provides us with a unique value offering which will be of great benefit to our customers, employees and other stakeholders in the business."

Most implant designs require bespoke medical instruments and, prior to its acquisition of Eurocut, Sandvik Medical Solutions had limited capabilities to supply instruments to go with its implants.

Sandvik says it will become an even stronger player in the medical instrumentation contract manufacturing sector following the Eurocut acquisition.

The Eurocut deal is the third piece of good news for The Medical House within a matter of days.

In addition to the £500,000 it expects to net from the sale, The Medical House has also got the "thumbs up" from patients who inject their own medicines for its AutoSafety Injector and passed a major milestone in an agreement with an un-named global pharmaceutical firm. Chairman Ian Townsend said of the deal with Sandvik: "We are delighted that this transaction leaves TMH in a stronger financial position.

"Although we could have hoped to receive more, we believe that in the current climate it is prudent to take a lesser sum now rather than speculate that a higher amount may be received later.

"This allows us to concentrate all our resources on our various drug delivery projects and opportunities and we look to the future with confidence."

Trials in a number of locations in USA and Europe by one of The Medical House's major international pharmaceutical industry clients have shown the company's AutoSafety Injector is a clear favourite among patients who need to inject their own medicines.

Meanwhile, an agreement involving Medical House with an un-named global pharmaceutical firm passed a major milestone when the regulator in one of the main areas of the world covered by the deal gave approval for the drug delivery system it involves.

Medical House says work is now proceeding on a different formulation of the drug to be delivered by TMH technology, which would need further regulatory approval.


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