Predictive Biosciences (Lexington, Massachusetts) a developer of diagnostics for cancer management, reported securing $10 million in Series A financing. Highland Capital Partners and IDG Ventures Boston co-led the investment in the company, which was jointly founded this year by the investors, entrepreneurs and scientists.

Predictive Bio said it is working on biomarker and assay technology intended for accurate, real-time cancer diagnostics. The company said it wants to design biomarkers that enable “informed cancer management.“

“What we mean by informed cancer management is really delivering the information that physicians need at the time that they need it to be able to make the best decisions for their patients,“ Eugene Chiu, a company co-founder and VP of business development, told Medical Device Daily.

“Predictive Biosciences is leading a new era in molecular diagnostics and personalized medicine,“ Chiu said. “We have an extensive proprietary and in-licensed IP portfolio from Children's Hospital Boston and its collaborating institutions, Beth Israel Deaconess Medical Center and Massachusetts General Hospital . With this exceptional scientific foundation, outstanding scientific founders, and an experienced team, Predictive Biosciences has attracted substantial initial funding to build breakthrough products for significant commercial opportunities.“

Highland's Paul Maeder and IDG Ventures' Michael Greeley will become members of the company's board.

Greeley said, “Predictive Biosciences' products enable physicians to provide patients with timelier, personalized cancer treatment, which will result in improved patient outcomes and lower healthcare costs. We are thrilled to back the commercialization of revolutionary biomarkers from the labs of Dr. Marsha Moses and Dr. Bruce Zetter, world class scientists and senior principal investigators in the Children's Hospital Boston Vascular Biology Program, whose director is Dr. Judah Folkman.“

IDG Ventures Boston invests in early-stage information technology and life sciences companies.

Predictive Bio also reported that Tony Shuber, former executive VP and chief technology officer for Exact Sciences (Marlborough, Massachussetts), has joined the company as chief technology officer.

Maeder said, “We backed Tony as part of the early Exact team. and his tremendous track record in commercializing products from concept to launch will be a huge asset to the company as it looks to boost overall scientific efforts and build its research and development team.“

• MannKind (Valencia, California) reported the exercise in full by the underwriters of an over-allotment option to buy another 3 million shares of its common stock in connection with its follow-on offering that priced Dec. 6. (MDD, Dec. 8, 2006).

Including the over-allotment shares, the offering will total 23 million shares at a public offering price of $17.42 a share. With the concurrent public offering of $115 million principal amount of 3.75% senior convertible notes, due 2013 (including $15 million in notes sold with the full exercise of an over-allotment option), the expected net proceeds to MannKind from the offerings will be roughly $497.2 million.

MannKind develops therapeutic products for diseases such as diabetes and cancer. Its lead product, the Technosphere Insulin System, is in Phase III clinical trials in the U.S., Europe and Latin America, to study safety and efficacy in the treatment of diabetes.

J.P. Morgan Securities and Merrill Lynch & Co. are acting as joint lead managers and joint bookrunners of each of the public offerings. Wachovia Capital Markets, CIBC World Markets, and Leerink Swann & Co., are acting as co-managers of the common stock offering.

In other financing news:

• Avitar (Canton, Maine) said it completed a financing for the sale of $520,000 of Secured Convertible Notes and 1.5 million seven-year warrants. The company said the proceeds will be used for the marketing and sale of ORALscreen, a non-invasive, rapid, onsite oral fluid test for drugs-of-abuse, and for general corporate development.

The Secured Convertible Notes, like the notes issued in accordance with the $4.27 million aggregate financings Avitar secured early in 2005 and 2006, will mature three years from the date of issuance and bear interest at 8%. They are secured by the assets of Avitar. The notes are convertible into shares of Avitar common stock, at the option of the investors, at 65% of the average of the three lowest intraday trading prices of the common stock, as quoted on the OTC Bulletin Board for the 20 trading days preceding the date that the investors elect to convert. The company has the right to prepay the Notes under certain circumstances at premiums ranging from 20% to 35%, depending on timing.

Avitar makes products for the oral fluid diagnostic market, the disease and clinical testing market and customized polyurethane applications used in the wound dressing industry.

• Bruker BioSciences (Billerica, Massachusetts) said it has filed a registration statement with the Securities and Exchange Commission for an offering of 10.4 million shares of its common stock. The company is offering 2.2 million shares, and four of its major Laukien shareholders — Isolde Laukien-Kleiner, Joerg Laukien, Dirk Laukien and Marc Laukien — are offering 8.2 million shares. The company and the selling shareholders have granted the underwriters a 30-day option to buy an aggregate of up to 1.56 million shares to cover any over-allotments.

Bruker BioSciences is the parent company of Bruker Daltonics , Bruker AXS and Bruker Optics .