A Medical Device Daily
Intelect Medical (Cleveland), a Cleveland Clinic-founded company that develops implantable neuromodulation systems for brain injury recovery, reported that it has closed its Series B financing for $7 million from Boston Scientific (Natick, Massachusetts) and Greatbatch (Clarence, New York).
Cornell University (Ithaca, New York), a partner in the company, provided key technology.
The company plans to use the proceeds to expand clinical feasibility trials for its investigational traumatic brain injury (TBI) recovery and stroke recovery therapies using deep brain stimulation (DBS).
“Stroke and traumatic brain injury affect millions of people,” said Vincent Owens, president/CEO of Intelect Medical. “The funding from Boston Scientific and Greatbatch will allow us to continue our applied research and clinical studies of DBS therapies and provide therapeutic options to help patients recover from stroke and TBI disabilities.”
Intelect was founded in 2005 based on technologies developed by Ali Rezai, MD, Director of the Cleveland Clinic’s Center for Neurological Restoration, Cleveland Clinic physicians and researchers, and Nicholas Schiff, MD, Director of the Laboratory of Cognitive Neuromodulation at the Weill Cornell Medical College (New York).
The company is one of 18 companies spun off from Cleveland Clinic in the past five years.
Acusphere (Watertown, Massachusetts) has entered into definitive agreements with institutional investors to raise $20 million in gross proceeds in a registered direct offering through the sale of shares of its common stock and warrants.
The company estimated that net proceeds from the offering will be about $18.65 million, after deducting placement agent fees and estimated offering expenses.
Acusphere has entered into subscription agreements with these investors to sell a total of 7,694,220 units, each unit consisting of one share of common stock and one warrant to purchase 0.4 shares of common stock at an exercise price of $3.10 per share, for a purchase price of $2.60 per unit.
Units will not be issued or certificated. The shares of common stock and warrants are immediately separable and will be issued separately. The warrants will be exercisable beginning on Dec. 15, 2007 and until June 15, 2012.
Cowen and Co., acted as exclusive placement agent for the offering.
Acusphere is a specialty pharmaceutical company that develops new drugs and improved formulations of existing drugs using its microsphere technology. Acusphere’s lead product candidate, Imagify injectable suspension, is a cardiovascular drug which has completed pivotal Phase III clinical trials for the detection of coronary artery disease.
In other financing news: Inverness Medical Innovations (IMI; Waltham, Massachusetts), a manufacturer of rapid diagnostic products for the consumer and professional markets, reported that 100% of holders of its outstanding 8.75% senior subordinated notes due 2012have tendered and not withdrawn their notes, in connection with a previously disclosed tender offer to purchase all of the outstanding $150 million in aggregate principal amount of the notes.
As a result of receiving the requisite consents, IMI said it will promptly execute and deliver a supplemental indenture in order to effect the proposed amendments to the indenture governing the notes.
IMI also reported the total consideration for the notes validly tendered in the tender offer. The total consideration will be $1,061.95 for each $1,000 principal amount of notes purchased pursuant to the tender offer, plus accrued and unpaid interest up to, but not including June 26.
The total consideration includes a consent payment of $20 per $1,000 principal amount of notes.
The tender offer and consent solicitation are being undertaken in order to facilitate IMI’s $92.50-a-share acquisition of Biosite (San Diego) and related transactions (Medical Device Daily, May 11, 2007). The tender offer remains conditioned upon, among other things, IMI receiving new financing in an amount of at least $1.3 billion and the company’s purchase of shares of common stock of Biosite pursuant to the tender offer for those shares made on May 29.
Inverness has retained UBS Investment Bank to act as dealer manager in connection with the tender offer and consent solicitation.