A Diagnostics & Imaging Week

Diagnostic test provider Quest Diagnostics (Lyndhurst, New Jersey) reported that it priced its previously disclosed $800 million in aggregate principal amount of senior notes in a public offering.

The notes were sold in two tranches, as follows: $375 million of 6.40% senior notes due 2017 and $425 million of 6.95% senior notes due 2037. The offering is expected to close tomorrow.

The company said it expects the net proceeds of the offering to be used, together with cash on hand, to repay all borrowings under the bridge loan facility incurred to pay a portion of the purchase price and transaction expenses of the previously disclosed $2 billion acquisition of AmeriPath (Palm Beach Gardens, Florida).

In other financing news:

• Clinical Data (Newton, Massachusetts) reported that it filed a universal shelf registration statement with the Securities and Exchange Commission (SEC). The registration statement covers up to an aggregate of $150 million of common stock, preferred stock, warrants and/or debt securities, or any combination thereof.

The company said that it currently expects that any net proceeds from the sale of the securities to be registered would be used for general corporate purposes.

Clinical Data says it is a “global biotechnology company unlocking the potential of molecular discovery, from targeted science to better healthcare.” Its PGxHealth division focuses on genetic test and biomarker development to help predict drug safety and efficacy, thereby reducing health care costs and improving clinical outcomes. Its Cogenics division provides molecular and pharmacogenomics services to both research and regulated environments. Its Vital Diagnostics division offers in vitro diagnostics solutions for the clinical laboratory.

• MGT Capital Investments, an investment company focused on healthcare information technology (HIT), reported that its subsidiary, Medicsight (London), has begun trading of its ordinary shares on the AIM Market of the London Stock Exchange under the symbol MDST.

The company raised $64 million (£32 million), before expenses, by placing 29,090,909 ordinary shares at $2.19 (£1.10) per share, and now has a market capitalization of $340 million (£171 million) based on the placing price.

At the same time as the initial public offering, MGT reduced its holding in Medicsight to 85 million shares, representing 54.7% of the issued share capital, and has raised about $24.5 million net of expenses. This leaves MGT with more than $40 million in cash in addition to its shareholdings in Medicsight and Medicexchange.

Tim Paterson-Brown, CEO of MGT and chairman of Medicsight, said, “This successful AIM listing demonstrates the success of MGT’s strategy of developing and growing HIT companies and unlocking their value for our shareholders. This listing provides Medicsight with the working capital required to execute its growth plan and increase its value to shareholders.”

MGT Capital is an investment company with two subsidiaries focused solely on the HIT sector.

Medicsight develops computer-aided detection and computer-assisted reader software. Its second subsidiary, Medicexchange, operates Medicexchange.com, an online multi-vendor sales channel for diagnostic, treatment and surgery planning solutions for cardiac, thoracic, breast imaging, orthopedic, and gastro intestinal imaging.

• Ellex Medical Lasers Limited (Adelaide, Australia), maker of ophthalmic laser and ultrasound systems, reported that it raised $5.5 million through the placement of 6.5 million ordinary shares at a price of 85 cents a share.

The issue price compares to a closing price Friday of 87 cents a share and a volume weighted average price for the week prior to the placement of just under 87 cents.

Ellex said it has undertaken the placement to strengthen the balance sheet to provide the company with the flexibility to pursue the next phase of its growth strategy.

“Over the past 2 years we have seen strong growth in our revenue and profit as we have transformed our business and transitioned away from reliance on OEM,” said Peter Falzon, CEO of Ellex. “During the 2007 financial year, we also started to leverage our strategy through acquisitions. The placement will enable the company to repay the bank debt accumulated through these acquisitions and from the investment in working capital to grow the core business.”

Falzon said that the ophthalmic device industry includes an unusually high number of small one- or two-product companies providing opportunity to acquire and consolidate under the Ellex brand and further leverage the company’s distribution channel.