A Diagnostics & Imaging Week
BG Medicine (Waltham, Massachusetts), a medical diagnostics company, reported that it has decided not to proceed with its previously disclosed IPO based it said on “current market conditions.” The company has withdrawn its registration statement on Form S-1 that it filed with the SEC back in December.
BG Medicine is a life sciences company focused on the development of molecular diagnostics based on biomarkers to improve patient outcomes and contain healthcare costs. It provides drug research and development services to global pharmaceutical makers, U.S. government agencies, and to the healthcare product divisions of companies.
It specializes in using biomarkers, substances used to detect disease at a molecular level, to enable research into the causes of disease and the effectiveness of drugs used to treat them. In addition to performing R&D for its customers and partners, the company intends to develop its own drugs. Products in the planning and discovery stages include treatments for heart disease and cancer among others.
In August, the company filed for an IPO of up to $80 million in stock on the Amsterdam exchange of NYSE Euronext under the symbol BGMDX.
In other financing news:
• Calypte Biomedical (Portland, Oregon), a developer of HIV diagnostic tests, said it has entered into an $8 million common stock purchase agreement with Fusion Capital Fund II, a Chicago-based institutional investor.
The company may sell up to $8 million of its common stock to Fusion Capital from time to time over a 24-month period after the SEC has declared the registration statement effective.
The proceeds will be used to further the commercialization of the company’s Aware HIV-1/2 Rapid diagnostic tests, develop new diagnostic tests and for general corporate purposes, it said.
The company has the right to sell shares of common stock to Fusion Capital from time to time in amounts between $100,000 and $1 million, depending on certain conditions, for up to $8 million of total funds. The purchase price of the shares will be based on the prevailing market prices of the company’s shares at the time of sale without any fixed discount, and the company will control the timing and amount of any sales of shares to Fusion Capital.
• RadNet (Los Angeles), a provider of diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers, reported that GE Healthcare Financial Services has agreed to arrange for RadNet an addition to its existing credit facilities of up to $110 million. The incremental facility will consist of $60 million as part of its second lien term loan and $50 million, which will be available for the company to draw-down in the future, of either additional term loans or additional capacity under its current revolving line of credit. The additions to RadNet’s existing credit facilities are intended to provide liquidity and working capital for near-term opportunities and future expansion.
• Elekta (Stockholm, Sweden) said that on Jan. 24 it repurchased 100,000 B shares at an average price of SEK 104.79.
Elekta said its current holding of own shares (treasury stock) amounts to 1,730 871 B-shares, including 1,630,871 B shares, which are in the process of being cancelled.
The total number of shares in Elekta as of Dec. 31 amounts to 93,903,316, divided between 3,562,500 A shares and 90,340,816 B shares.
The repurchases being carried out follows a board decision to mandate management the repurchase of shares amounting up to SEK 100 million, but maximized to 1,200,000 shares.
Elekta provides clinical solutions, management and information systems and services for cancer care and management of brain disorders.