A Medical Device Daily

Agile Therapeutics (Conshohocken, Pennsylvania) reported completing a $12 million equity financing to further the development of its low-dose transdermal contraceptive patch.

The investment was led by ProQuest Investments, a new investor to Agile. All investors from earlier rounds also participated, including the Hillman Co., TL Ventures and PA Early Stage Partners.

Dr. Thomas Rossi, CEO of Agile, said, “I'm very gratified that the seasoned entrepreneurs at these firms value our recent progress and outstanding future potential.”

Agile is a pharmaceutical product development company based on a proprietary transdermal drug delivery technology.

In other financing activity:

• HealthSouth (Birmingham, Alabama) reported that it will issue $1 billion in aggregate principal amount of senior notes, using the proceeds and cash on hand to repay all outstanding borrowings under its interim loan agreement entered into on March 10, 2006.

HealthSouth is one of the nation's largest providers of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, operating facilities nationwide.

• National Mentor (Boston) reported commencing a cash tender offer and consent solicitation for any and all outstanding $150 million aggregate principal amount of its 9 5/8% senior subordinated notes, due 2012. This offer to purchase the notes is part of the company's refinancing in connection with its pending merger with an affiliate of Vestar Capital Partners, expected to close June 29.

The tender offer is scheduled to expire at 8 a.m., EST, June 29, unless extended. The consent solicitation is scheduled to expire at 5 p.m., EST, on June 12, unless extended. The total consideration for each $1,000 principal amount of notes validly tendered and accepted for payment and consents validly delivered on or prior to the consent date will be equal to the present value of $1,048.13 and all future interest payments on the notes to Dec. 1, 2008, minus accrued and unpaid interest from the last date on which interest has been paid, up to, but not including, the settlement date.

The tender offer and consent solicitation is subject to the satisfaction of certain conditions, including the merger of NMH MergerSub, a wholly-owned subsidiary of NMH Investments, an affiliate of Vestar Capital Partners, with and into National Mentor Holdings; the company having repaid its obligations under its existing senior secured credit facilities pursuant to a refinancing of those facilities; the company having received, on or prior to the consent date, consents which have not been revoked in respect of at least a majority in principal amount of the notes and a supplemental indenture having been signed and delivered in respect of the proposed amendments; and certain other conditions.

The Mentor Network is a provider of home and community-based human services for individuals with mental retardation and other developmental disabilities, at-risk youth and their families and persons with acquired brain injury. The Mentor Network provides services to clients in 33 states.

• Curon Medical (Fremont, California) reported that its board has approved a 1-for-4 reverse stock split. Each holder of Curon common stock was to have received one newly-issued share for each four shares held as of the close of business May 29.

Since Curon Medical has been notified of its delisting from the Nasdaq Capital Market, the company said it expected its quotation to appear in the Pink Sheets under the trading symbol CURN beginning May 24. Curon said that its common stock may also be quoted in the future on the Over-the-Counter Bulletin Board, provided that a market maker files the necessary application with the NASD and such application is cleared. Curon's common stock was to have begun trading on a reverse split basis as of the opening of trading, 2006.

Curon manufactures products for the treatment of gastrointestinal disorders, consisting of radio frequency generators and single-use disposable devices. Its Stretta System received FDA clearance in April 2000 for the treatment of gastroesophageal reflux disease. The company's Secca System for the treatment of bowel incontinence received FDA clearance in March 2002.