Galil Medical (Tel Aviv, Israel), one of the companies owned by Elron Electronic (also Tel Aviv), reported completing a $52 million financing led by Thomas, McNerney & Partners and The Vertical Group and joined by Investor Growth Capital.

As part of the financing, the new investors purchased shares from certain shareholders of Galil, including Elron’s subsidiary, Rafael Development Corporation (RDC), for about $8 million and $4 million of existing shareholders loans were converted into shares of Galil Medical.

Following the transaction, Elron holds about 12% and RDC holds about 17% of Galil’s outstanding shares.

Elron also reported completion of the sale of Galil Medical’s 25% interest in Oncura (Plymouth Meeting, Pennsylvania) to Oncura’s 75% shareholder, GE Champion Services and Galil Medical’s acquisition of Oncura’s urology-related cryotherapy business.

Both the financing and the proposed deals with Oncura were reported last month (Medical Device Daily, Nov. 28/Nov. 30, 2006).

The cryotherapy business is now solely owned and operated by Galil.

Chen Barir, chairman of Galil, told Medical Device Daily that the purchase of the urology business will boost its sales in the U.S., Europe and Asia, which has had a “run rate” of about $20 million in the past year. He said that about 75% of the company’s business is in the U.S., supported by a sales organization of 40 people focused on urology. He said the company has “significant and sizable business” in Europe and a “smaller presence” in Asia.

Galil manufactures a cryotherapy platform incorporating freezing technology and proprietary needle design for minimally invasive treatments for various clinical applications. Galil’s cryotherapy systems are used for the treatment of prostate and kidney cancer.

Barir said that the company’s “first success” was via sales of kits for prostate cancer and renal cancer but that the company now has “truly a platform technology ... head to toe” and that it will target its uses in applications and procedures performed in hospitals and ambulatory service centers.

The company’s next-generation systems are being developed for women’s health conditions and liver, lung and bone cancer.

Doron Birger, president/CEO of Elron, said, “These transactions will enable expansion of Galil Medical’s sales as well as research and development and clinical programs to support existing and new applications for Galil Medical’s cryotherapy technology.”

Elron identifies technologies, creates partnerships, secures financing, and recruits management teams; its companies comprise a range of public and private companies in the fields of medical devices, information and communications technology, clean technology and semiconductors.

IDB is an Israel-based technology holding company involved in the long-term performance of its group companies.

In other financing activity:

• Beckman Coulter (Fullerton, California) reported its intention to offer about $525 million aggregate principal amount of Convertible Senior Notes, due 2036.

In certain circumstances, the notes may be convertible into cash up to the principal amount and, if applicable, shares of common stock with respect to any excess conversion value.

Beckman Coulter said it also expects to grant initial purchasers an option to acquire up to $75 million aggregate principal amount of additional notes to cover over-allotments.

The company said that the purpose of the offering is to reduce its interest expense in order to fund additional R&D activities, including its molecular diagnostics project.

The company said it expects to use the proceeds of the offering to repurchase about $100 million worth of shares of its common stock with the closing of the sale of the notes, including through block trades with one or more of the initial purchasers and/or their affiliates. In addition, it said it expects to use about $245 million of the proceeds to tender for any and all of its outstanding 7.45% senior notes, due 2008, including expenses and fees, about $185 million of the proceeds to repay the bridge facility it entered into in connection with its acquisition of Lumigen (Southfield, Michigan) and the remainder to reduce amounts under its revolving credit facility. Beckman Coulter first reported the plan to acquire Lumigen, a developer of high-sensitivity testing in clinical diagnostics and life science research, for $185 million in cash in October (MDD, Oct. 4, 2006).

Beckman Coulter manufactures biomedical testing instrument systems, tests and supplies that simplify and automate laboratory processes.

• Emdeon (Elmwood Park, New Jersey) reported results of its tender offer to purchase up to 140 million shares of its common stock at $12 a share, which expired at 5 p.m., EST, Dec. 11.

Based on a final tabulation, 129,234,164 shares of common stock were properly tendered and not withdrawn. Emdeon will accept for purchase all shares properly tendered and not withdrawn at $12 a share, for about $1.55 billion.

With the tender offer, Emdeon expects to have about 161 million shares of common stock issued and outstanding following payment for the accepted shares.

Emdeon businesses are comprised of WebMD Health (New York), a provider of health information services; ViPS (Baltimore), a provider of provides healthcare analytics, technology and reporting; and Porex (Fairburn, Georgia), a manufacturer of porous plastic products and components used in healthcare, industrial and consumer applications.