A Medical Device Daily

Volcano (Ranch Cordova, California) reported raising about $123.3 million in its offering of 8.05 million shares of common stock at $16.25 a share.

The offering included 1.05 million shares sold as an exercise of the underwriters’ over-allotment option.

Earlier this month Volcano said it intended to sell 6 million shares and that it could raise up to $118.54 million from the offering before expenses (Medical Device Daily, Oct. 10, 2007).

Volcano has about 38.7 million shares outstanding, according to its most recent quarterly report, filed in August.

J.P. Morgan, Banc of America and Piper Jaffray are serving as joint book-running managers for the offering, with Bear Stearns acting as co-manager.

Volcano offers a suite of devices designed to facilitate endovascular procedures and enhance the diagnosis of and guide therapies for vascular and structural heart diseases.

Power Medical Interventions (PMI; Langhorne, Pennsylvania) has priced its IPO of 3.85 million shares of common stock at $12 to $14 a share.

PMI first disclosed its proposed IPO in May (MDD, May 23, 2007), saying it hoped to raise up to $100 million, though at that time it had not disclosed the number of shares in the offering or the price range.

The company now estimates the net proceeds from the sale to be about $43 million, based on an assumed price of $13 a share, and it has granted underwriters a 30-day option to buy up to an aggregate of 577,500 shares, if the underwriters sell more than 3,850,000 shares. If the option is exercised in full, total proceeds would be about $50 million.

The company makes cutting and stapling products used in open and endoscopic procedures, including bariatric, colorectal and thoracic surgery.

The company said it intends to use the funds for working capital, expansion of sales and marketing, continuation of R&D, expanded manufacturing, capital equipment and possible acquisitions.

PMI has developed the micro-robotic, computer-assisted SurgAssist system used to cut tissue, close wounds and reconnect anatomical structures, which it calls “a preferable alternative to hand suturing.”

The company said that in the near future it will introduce its next-generation products, a line of self-contained, untethered instruments designed to provide enhanced dexterity and access to anatomy. Longer term, PMI says it would continue to incorporate new technologies into its instruments.

The first of its next generation products is a hand-held articulating linear stapler, its i60 linear stapler. PMI received FDA 510(k) clearance from the FDA for its i60 product in September and expects to introduce it in 4Q07.

The company said it has sustained net losses since its inception in 1999, including a net loss of $28.3 million for the year ended Dec. 31, 2006 and a net loss of $13.8 million for the six months ended June 30, 2007. PMI added that it had an accumulated deficit of $137.1 million as of Dec. 31, 2006 and $150.9 million as of June 30.

The company also said it expects to continue to incur significant operating losses, at least through 2008, as it invests capital in the development of its business.

In other financing activity:

• VisEn Medical (Woburn, Massachusetts) reported raising $7 million in a Series B financing. Merck Capital Ventures joined Flagship Ventures to co-lead this investment round, which also included The Bollard Group and other existing investors.

Per Lofberg, president/CEO of Merck, will join VisEn’s board of directors.

The company was founded in 2000, based on fluroscence in vivo imaging technologies initially developed by researchers and clinicians at the Massachusetts General Hospital and Harvard Medical School (both Boston).

• Vascular Closure Systems (VCS; Palo Alto, California) said it has secured initial corporate funding, the amount not disclosed.

The company said that the proceeds will be used to accelerate the development of the company’s core technology and to support regulatory activities, the company said.

VCS, a privately-held device company, is developing vascular access closure technology for the interventional cardiology market.

• SensiGen (Ann Arbor, Michigan), a biotech developing gene-based molecular diagnostics, reported closing a $300,000 investment from Delaware Crossing Investor Group.

The company said it would use the money to accelerate development and commercialization of its AttoSense molecular diagnostic technology.

To date SensiGen has raised nearly $3.5 million in investments from the Michigan Economic Development, the management team, and various angel investors, in addition to the investment from Delaware Crossing.

The company’s products, in development, include tests for early detection of human papillomavirus (HPV), the primary cause of cervical cancer, chronic kidney disease, Crohn’s disease, Lupus and other diseases.