A Medical Device Daily

Monitoring product maker Masimo (Irvine, California) priced its previously disclosed initial public offering of 11.9 million shares at $17 a share

Masimo, which filed for its IPO back in April (Medical Device Daily , April 20, 2007), had anticipated its offering of 11.9 million shares to price between $16 and $18 per share. The company said it expects proceeds of about $20.2 million, or $48.5 million if the underwriters exercise the over-allotment option in full.

The company said that of the 11,916,626 shares for sale, 10,416,626 of the shares are being sold by selling stockholders and the remainder by Masimo. The company also granted the underwriters an option to purchase up to an additional 1,787,494 shares of common stock to cover over-allotments, if any. Masimo will not receive any proceeds from the sale of shares by the selling stockholders.

Masimo plans to use the proceeds for sales and marketing activities, capital expenditures, research and development, including clinical studies, and for general corporate purposes. The company may also use a portion of the proceeds for the acquisition of or investment in companies, technologies or products that complement the business.

The company invented Masimo Signal Extraction Technology, or Masimo SET, which provides the capabilities of read-through motion and low perfusion pulse oximetry to address the primary limitations of conventional pulse oximetry. Pulse oximetry is the non-invasive measurement of the oxygen saturation level of arterial blood, or the blood that delivers oxygen to the body's tissues, and pulse rate.

Piper Jaffray, Cowen and Co., Deutsche Bank Securities, Citi and Thomas Weisel Partners served as the underwriters for the offering.

Masimo shares are listed on the NASDAQ Global Market under the symbol MASI.

In other financing news:

• Oculus Innovative Sciences (OIS; Petaluma, California) reported that it has entered into definitive agreements with institutional and other accredited investors with respect to the private placement of up to 1,263,500 shares of its common stock at a purchase price of $8 per share, for expected gross proceeds of $10.1 million, before payment of placement agent commissions and offering expenses.

Investors also will receive warrants to purchase an aggregate of up to 417,000 shares of common stock at an exercise price of $9.50 per share. The warrants are subject to weighted average anti-dilution protection.

The company said it currently intends to use most of the net proceeds from the offering to fund its ongoing Phase II clinical trial of Microcyn Technology for treatment of mildly infected diabetic foot ulcers, activities related to the Phase III trials, and its ongoing operations.

OIS is a biopharmaceutical company that develops a family of Microcyn Technology-based products intended to help prevent and treat infections in chronic and acute wounds. Oculus' platform technology, called Microcyn, is a non-irritating, small molecule oxychlorine compound that is designed to treat a wide range of pathogens, including antibiotic-resistant strains of bacteria, viruses, fungi and spores.

• Biofisica (Duluth, Georgia) a developer of wound care therapy products, reported that it has obtained $2 million in venture debt financing from Leader Ventures.

The company said it plans to use the funds for working capital and operational expenses related to its wound care product, POSiFECT Bio-Electric Stimulation Therapy. The product was launched in early 2007 and is now being marketed and sold in the UK.

"POSiFECT is the first medical device available that combines two technologies — moist wound-care dressing and electrical stimulation — in a fully disposable, easy-to-use, sterile dressing that facilitates the normal healing process. Clinical research has shown that POSiFECT accelerates healing in difficult to heal or non-healing chronic wounds," said Rafael Andino, president/CEO of Biofisica.

• National Surgical Hospitals (NSH; Chicago), an owner and operator of surgical hospitals and surgery centers, reported the completion of a $150 million debt transaction with GMAC Health Capital, a business unit of Residential Capital.

The proceeds from the transaction will be used to repay NSH's existing senior credit facility and most of the company's outstanding preferred stock and related dividends. An additional acquisition line of credit provides NSH access to capital for future transactions to expand the company. The transaction also provides for a working capital line of credit.

"This transaction substantially reduces our cost of capital and puts our balance sheet in line with the company's stage of development," said Bryan Fisher, chief financial officer for NSH.

NSH owns, operates, and develops surgical hospitals and surgery centers in partnership with local physicians.