A Medical Device Daily

3i Venture Capital (Menlo Park, California) reported leading a $10 million series D investment in OrthoClear Holdings (Boston).

Orthoclear said the financing would be used to fund capital expenditures, and support sales and marketing and upcoming expansion into Europe and the Far East.

Founded in early 2005, OrthoClear has developed a system of tooth aligners that it describes as “invisible and customizable.” It also has developed web-based software, OrthoView, so that orthodontists can track the progress of treatments.

Since product launch in May 2005, OrthoClear says it has captured more than 20% of the North American clear removable aligner market.

Allan Ferguson, senior partner with 3i, said, “Ortho-Clear [provides] the most sophisticated and clinically effective solution at a compelling price.”

Paul Badawi, director with 3i and board member of OrthoClear, said, “OrthoClear has been very open with us regarding its outstanding litigation with Align Tech-nology [Santa Clara, California], and after careful consideration the issue has not affected our willingness to invest.” With the investment, Badawi will be joining OrthoClear's board of directors.

Cowen and Co. advised OrthoClear on the financing.

3i manages more than 200 investments across Europe, the U.S., Asia and Israel in excess of $1 billion, its investments falling into four sectors: healthcare, telecommunications, software and electronics/semiconductors.

MedaSorb Technologies (Monmouth Junction, New Jersey), a company developing products for removing toxic compounds from the blood, said that its stock began trading yesterday under the symbol OTC BB: MSBT.

MedaSorb completed a reverse merger transaction on June 30 and immediately closed a $5.25 million private placement of its Series A 10% cumulative convertible preferred stock and warrants to purchase common stock.

Al Kraus, president/CEO of MedaSorb, said, “We believe that our medical devices, which use absorption technology, unlike current technologies, could be a dramatic improvement in the care of sepsis and dialysis patients.”

MedaSorb's initial products, CytoSorb and BetaSorb, are hemoperfusion devices incorporating adsorbent polymer technology. It says its products have a variety of other applications.

In other financing activity:

• Uroplasty (Minnetonka, Minnesota) reported the closing of a $2.1 million financing, principally with institutional investors. Uroplasty issued about 1.4 million shares of common stock at $1.50 a share, and five-year warrants exercisable at $2.50 a share to purchase 695,000 additional shares.

The company said the funding would support expansion of U.S. sales and marketing and for working capital and general corporate needs.

Uroplasty, with subsidiaries in the Netherlands and the UK, manufactures products used to treat voiding dysfunctions, including urinary and fecal incontinence, overactive bladder and vesicoureteral reflux.

Its Urgent PC Neuromodulation System is a minimally invasive nerve stimulation device designed for office-based treatment of overactive bladder symptoms of urge incontinence, urinary urgency and urinary frequency. The Urgent PC system is sold in the U.S., Canada and countries recognizing the CE mark. Outside the U.S., Urgent PC also is indicated for treating fecal incontinence.

The I-STOP Mid-Urethral Sling is a biocompatible, tension-free sling used to treat female stress urinary incontinence.

Macroplastique Implants, Uroplasty's soft-tissue bulking agent, is used to treat both female and male urinary incontinence and to treat vesicoureteral reflux in children.

• United Surgical Partners International (USPI; Dallas) and its subsidiary, United Surgical Partners Holdings (Holdings), reported that the consideration to be paid in Holdings' previously announced tender offer and consent solicitation for its outstanding 10% senior subordinated notes, due 2011.

Holdings had received, as of 5 p.m. EST on Monday, tenders and consents from holders of $149.9 million principal amount of the notes, representing about 99.3% of the outstanding notes, in connection with the offer.

USPI also reported entering into a new $200 million term credit facility.

Total cost of the offer is expected to be about $163 million. The balance of the proceeds from the new credit facility will be used to repay existing debt under USPI's revolving credit facility.

Bear, Stearns & Co. is dealer-manager for the tender offer and solicitation agent for the consent solicitation.