A Medical Device Daily

Advanced Magnetics (Cambridge, Massachusetts) reported the pricing of an underwritten public offering of 2.1 million shares of its common stock at a price to the public of $62 per share, which values the offering at $130.2 million before underwriting discounts and commissions. Advanced Magnetics also granted the underwriters a 30-day option to purchase up to an additional 315,450 shares of common stock. All of the shares are being offered by Advanced Magnetics.

Morgan Stanley & Co. is acting as the sole book-running manager for the offering. UBS Securities is acting as joint lead manager for the offering. Jefferies & Company, and ThinkEquity Partners are acting as co-managers for the offering.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. The offering may be made only by means of a prospectus supplement and the accompanying prospectus.

Advanced Magnetics develops superparamagnetic iron oxide nanoparticles used in pharmaceutical products.

In other financing news:

• Response Biomedical (Vancouver, British Columbia) said it has entered into a worldwide, exclusive agreement with 3M (St. Paul, Minnesota) through its medical division to pursue the development and commercialization of diagnostic products targeting hospital and community acquired infectious diseases using Response Biomedical’s Ramp testing platform. 3M is making an $8 million equity investment in Response Biomedical, representing roughly a 13% ownership position.

Response Biomedical will be responsible for development and manufacturing of the Ramp-based products, while 3M will be responsible for clinical and regulatory matters, and all sales, marketing and distribution of the infectious disease tests. 3M will pay Response Biomedical a transfer price for the components of the RAMP technology produced by Response Biomedical (principally Readers and individual test cartridges) and will fund the development of future Ramp-based products in the infectious disease area. Initially, 3M will market rapid tests for Staphylococcus aureus (S. aureus) and Flu A/B that have been developed on Response Biomedical’s RAMP platform and are expected to enter clinical testing in the near future. The parties expect to begin marketing initial products in 2007.

3M’s equity investment consists of about 14.8 million shares at a price of Canadian $0.62 per share. 3M agreed not to sell any of its shares for a period of 12 months from closing. For a one-year period, 3M will have a pro rata right, based on their percentage equity ownership in the company, on a fully diluted basis, to participate in subsequent issuances of equity securities of the company.

The company said the proceeds from the financing will be used for general working capital purposes, capital equipment acquisitions required for the scale up of the company’s manufacturing processes, development of its next generation Ramp Reader and to expedite the commercialization of lead new product candidates.

Response makes rapid on-site diagnostic tests for use with its portable Ramp for clinical and environmental applications.

3M is a diversified technology company with 2005 sales of more than $21.2 billion worldwide. 3M Health Care, one of 3M’s six major business segments, provides products and services to help healthcare professionals improve the practice and delivery of patient care in medical, dental, orthodontic and health information markets.

• lapyx Medical (San Diego) reported a $9 million investment by Tavistock Life Sciences , bringing the company’s total funding to more than $12 million. This round of funding coincides with the company’s rebranding from Medical Device Group to Iapyx Medical, and its new mission to develop medical devices that reduce hospital-acquired infections. Iapyx plans to use this round of funding to support product development, marketing and sales. The company re-named itself after Iapyx, a wound healer and battlefield surgeon in Greek mythology who is one of the first people credited with identifying and treating the problem of surgical site infections.

Iapyx Medical makes single-use medical devices designed to combat the epidemic of hospital-acquired infections.

• Biopure (Cambridge, Massachusetts) reported the pricing of an underwritten public offering of stock and warrants. Subject to closing conditions, the underwriters have agreed to buy from the company 25 million new shares of Biopure common stock and warrants to acquire an additional 25 million new shares. The price for one share and one warrant is 64 cents, and the exercise price of each warrant is 80 cents. The transaction is expected to close this week resulting in net proceeds to Biopure of roughly $14.4 million assuming no exercise of the warrants issued in the offering. These warrants have a five-year term and are callable by Biopure after six months provided that the weighted average price of Biopure’s common stock for 10 consecutive days is more than $1.20. Biopure has granted the underwriters a 45-day option to buy an additional 3.75 million shares and 3.75 million warrants to cover over-allotments.

Biopure said it intends to use the proceeds from this offering for general corporate and working capital purposes.

The company makes pharmaceuticals, called oxygen therapeutics, that are intravenously administered to deliver oxygen to the body’s tissues.

• Acacia Research (Newport Beach, California) said it has obtained commitments to buy about $10 million of its Acacia Research-CombiMatrix common stock and warrants in a registered direct offering. Acacia will sell roughly 9.8 million units for $1.02 per unit to a select group of investors. Each unit will consist of one share of Acacia Research-CombiMatrix common stock and a five-year warrant for the purchase of 1.2 shares of common stock at an exercise price of 87 cents per share. Oppenheimer & Co. acted as exclusive placement agent for the transaction. Acacia comprises two operating groups, Acacia Technologies and CombiMatrix.

• Emdeon (Elmwood Park, New Jersey) reported the final results of its tender offer to buy up to 140 million shares of its common stock at $12 per share which expired Dec. 4.

Based on the final tabulation by American Stock Transfer & Trust Company, the depositary for the tender offer, roughly 129.2 million shares of common stock were tendered and not withdrawn. Emdeon will accept for purchase all shares that were tendered at $12 per share for about $1.55 billion.

Emdeon, a provider of business, technology and information solutions for healthcare delivery, said it expects to have around 161 million shares of common stock issued and outstanding following payment for the accepted shares.