Financings roundup: ViewRay closes on $25 million; OMI Medical files Chapter 11
A Diagnostics & Imaging Week
ViewRay (Gainesville, Florida) reported the close of a $25 million Series B financing. Founded in 2004, ViewRay develops real-time MRI-guided radiation therapy device for the treatment of cancer.
The financing was led by OrbiMed Advisors and Fidelity Biosciences, joined by Aisling Capital and Kearny Venture Partners.
“This substantial funding from blue-chip biomedical investors is a first in our industry and a testament to the promise of ViewRay’s technology to help cancer patients. More importantly, it allows us to accelerate the development of our system, the first device to promise real-time volumetric imaging simultaneous with radiation treatment” said ViewRay CEO William Wells.
The ViewRay Renaissance System 1000 technology was invented by James Dempsey, PhD, associate professor in the Department of Radiation Oncology at the University of Florida (Gainesville) and has been exclusively licensed by the company from the university.
ViewRay said the Series B proceeds will be used to build the ViewRay team and manufacture and validate advanced prototypes of the Renaissance System 1000.
OMI Medical Imaging (Weston Florida) reported that it and certain of its affiliated companies have filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of Florida on Jan. 15, 2008.
Since the Deficit Reduction Act reimbursement cuts took effect on Jan. 1, 2007, the company says it has been unable to meet certain financial obligations to its secured lenders.
OMI operates 21 free-standing imaging centers that provide MRI and CT procedures. The centers are primarily located in Dade, Broward and Palm Beach counties.
During the bankruptcy proceedings, OMI said that it will maintain normal operations for its referring physicians, patients and employees.
CEO Nelson Acosta said, “We are very optimistic about the future of our business. The Chapter 11 filing will allow us to reorganize and restructure our operations so that we can fine tune our business and focus on providing the best possible service to our referring physicians and their patients. This is a very positive step to ensure the future viability of our company in a very challenging time for the medical imaging industry.”
OMI has retained the services of GlassRatner Advisory & Capital Group, to assist in restructuring its operations during the Chapter 11 proceeding. Thomas Santoro, a principal with GlassRatner, has been named chief restructuring officer and will work with Acosta and the company’s management to develop a plan to emerge from Chapter 11.
Santoro has experience leading companies through reorganizations and has held senior positions with several healthcare companies that dealt with financial and operational challenges.
OMI’s legal advisors are Shutts & Bowen.
OMI is a provider of MRI and CT diagnostic services.