Clarus Ventures (Cambridge, Massachusetts), a life sciences venture capital firm, on Monday reported the close of Clarus Lifesciences II, a $660 million fund in limited partner commitments. This is the second investment fund formed and managed by Clarus since the firm was established in 2005.

The firm plans to invest $20 million to $60 million in biotechnology, specialty pharmaceutical and med-tech companies developing products for the treatment of human diseases, Clarus said.

"We think there [are] more opportunities to be investing now than ever before. It's a good time to have capital and to be an investor," Kurt Wheeler, a managing director for Clarus, told Medical Device Daily.

Clarus has led investment rounds for such companies as Pelikan Technologies (Palo Alto, California) (Medical Device Daily, Dec. 7, 2007); Globus Medical (Audubon, Pennsylvania) (MDD, Aug. 24, 2007); and Sientra (Santa Barbara, California) (MDD, April 19, 2007).

In 2005 Clarus reported closing its inaugural fund of $550 million (MDD, Dec. 7, 2005). That fund has committed 90% of its proceeds to date, the firm noted.

Wheeler said the firm plans to follow a similar investment strategy for Clarus II.

"For medical devices, that means later-stage medical technology investments," he said.

Generally, Wheeler said Clarus looks for companies nearing commercialization or that are already there, to invest in. Globus and Sientra are good examples of such companies, he noted.

As concerns about a recession in the U.S. grow stronger, Wheeler said medical device companies are not necessarily recession-resistant.

"Over the next 12 to 18 months we may see some opportunities where we have to hold our investments longer before we can take them into public markets so we are impacted that way," Wheeler said. Clarus usually operates in three- to five-year timeframes, he said.

"You have to invest through the recessions," Wheeler added.

Clarus has $1.2 billion under management and has offices in Cambridge and South San Francisco.

In other financing activity:

• RadNet (Los Angeles) said that GE Healthcare Financial Services has arranged for RadNet an increase to its existing credit facilities, including $35 million which has drawn down at close and the ability to further increase the facilities by an incremental $65 million. The additions to the company's existing credit facilities are intended to provide capital for near-term opportunities and further expansion, RadNet said.

"We are very pleased to have completed this financing transaction in one of the most challenging credit markets in recent history," said Howard Berger, MD, RadNet's CEO. "I believe that the completion of this financing evidences confidence by our credit investors in our future ability to continue to grow our business in a disciplined and effective manner."

"While we retain floating-rate interest exposure and future rate movements are unknown, the steady drop in interest rates over the last year in the financial markets has benefited us in that it has permitted our overall blended interest cost upon the closing of this financing to remain similar to the rates initially paid by us in November 2006." Berger said.

"The incremental facility will provide us liquidity to capitalize on near-term opportunities that lie ahead. We currently see more opportunities in our industry for consolidation and growth than ever before. The incremental facility provides us the financial flexibility and capital availability to accomplish growth and expansion consistent with our strategic goals."

RadNet provides diagnostic imaging services through a network of 143 outpatient imaging centers. Its core markets include California, Maryland, New York and Florida.

GE Healthcare Financial Services provides capital, financial solutions, and related services for the global healthcare market. It has more than $17 billion of capital committed to the healthcare industry.

• St. Jude Medical (St. Paul, Minnesota) said its board has authorized the company to repurchase up to $250 million of its common stock. Purchases may be made in the open market, in privately negotiated transactions or otherwise, St. Jude said.

St. Jude had about 343 million shares of common stock outstanding as of Dec. 29.

The company's five major focus areas are cardiac rhythm management, atrial fibrillation, cardiac surgery, cardiology and neuromodulation. n