Imagyn to Sell Impotence Products Line

Imagyn Medical Technologies Inc. said Friday that it will sell its line of impotence products to Timm Research Co. for $25.8 million as it tries to reduce debt.

Imagyn, a Newport Beach maker of gynecological and urological products, also said it would sell its Allstate adult reusable diaper division to Pacific Feather Co.

“The sale of these non-strategic assets is part of our continued effort to aggressively reduce costs, improve cash flow and focus on our core business,” said Chief Executive Charles Laverty, in a statement.

The impotence line accounted for about 24% of Imagyn’s fiscal 1998 sales.

Proceeds from the sales of the two units will go toward reducing debt, Laverty said. Earlier this year, the company disclosed liquidity problems and said in a regulatory filing in July that it couldn’t ensure a positive cash flow from operations in the future.

In the last year alone, Imagyn shares have lost more than 90%. They closed unchanged Friday, at 25 cents.

The company said it’s in talks to sell further assets before the end of the year.

Imagyn expects to close the sale of the impotence line, which includes diagnostic equipment and erection devices, within 30 days, subject to regulatory approval. Terms of the diaper division sale weren’t disclosed.