A Medical Device Daily

Abiomed (Danvers, Massachusetts) reported that it has priced an offering of common stock at $13.75 a share. The offering consists of 5 million shares of common stock, all of which are being sold by Abiomed, with net proceeds to be about $63.6 million.

The underwriters have been granted an option to buy up to an additional 750,000 shares of Abiomed's common stock to cover over-allotments, if any.

According to the company's Securities and Exchange Commission filing, the company intends to use the proceeds from the offering to expand its global sales and distribution, complete clinical studies and regulatory processes, R&D, and for general corporate purposes, including working capital and potential acquisitions.

The company declined additional comment concerning the offering.

Abiomed makes products designed to assist or replace the pumping function of the failing heart. Abiomed manufactures the AB5000 Circulatory Support System and the BVS 5000 Biventricular Support System for the temporary support of all patients with failing but potentially recoverable hearts and is developer of the AbioCor Implantable Replacement Heart.

Morgan Stanley & Co. and UBS Securities are managing the offering.

In other financing news:

• IsoRay (Richland, Washington), focused on treatments for solid cancer tumors using its Cesium-131 brachytherapy seeds, reported closing a $16,522,000 equity financing led by Punk, Ziegel & Company and Maxim Group.

IsoRay issued 4,130,500 shares of its common stock at $4 a share and issued warrants to buy 826,100 shares of its common stock (excluding warrants issued to the placement agents, which have a 180 day lock up) at an exercise price of $5 a share to various institutional investors. If all warrants are exercised, IsoRay would receive an additional $4,130,500. The shares and warrants were sold pursuant to the company's registration statement on Form S-3 declared effective by the SEC Feb. 15.

"The net proceeds from this offering are to be used to expand IsoRay's sales and marketing, invest in plant and equipment, inclusive of manufacturing technologies, which are expected to lower the company's production costs and could be used to expand the application of medical isotopes beyond the prostate market," said Roger Girard, CEO and chairman of IsoRay.

IsoRay says that its Cesium-131 seed offers a shorter half-life than the two other isotopes commonly used for brachytherapy, which results in a substantially faster delivery of therapeutic radiation, lower probability of cancer cell survival and reduction of the longevity of common brachytherapy side effects, according to the company.

• Greatbatch (Clarence, New York) reported entering into separate privately negotiated agreements under which it will exchange $50 million of its outstanding 2% convertible subordinated debentures, due 2013, for an equivalent principal amount of a new series of 2% convertible subordinated debentures, due 2013, and under which it will issue another $80 million of new debentures. The transactions are expected to close on March 28.

The new debentures contain a share settlement feature which requires the company, upon conversion of the new debentures, to pay holders in cash for each $1,000 principal amount of new debentures the lesser of $1,000 and the conversion value of the new debentures, unless the company otherwise elects. Any amounts in excess of $1,000 will be settled in shares of the company's common stock, or at the company's option, cash.

The initial conversion price of the new debentures is about $34.70. The new debentures are redeemable by the company at any time after June 20, 2012.

Greatbatch develops components used in implantable devices and other technical applications.

• EarlyDetect (Irvine, California) reported retaining MidSouth Capital (Atlanta) as its exclusive investment banker. EarlyDetect makes in vitro diagnostic health test kits for in-home, hospital and small-test site use.

EarlyDetect's two wholly owned subsidiaries, Pan-Probe Biotech and Sherman Biotech, are working on the R&D of diverse formulations and testing of vaccines for the H1N5 Bird Flu, off-patent drug SB-15, a formulation targeted toward reducing anxiety in Fragile X patients, autism and other related illnesses.