A Medical Device Daily Staff Report
Tangent Medical Technologies (Ann Arbor, Michigan), a development stage medical device company, reported the completion of a $4.5 million Series A equity financing co-led by Arboretum Ventures and Flagship Ventures. Also participating in the financing were Osage Ventures and several angel investors responsible for the initial seed funding for the company. In conjunction with the financing, Tim Petersen of Arboretum and Harry Wilcox of Flagship have joined Tangent's board.
"Tangent plans to use the Series A proceeds for regulatory filings and commercial launch of the company's lead product, the NovaCath Closed IV Catheter System," said Jeff Williams, Chairman/CEO of Tangent. NovaCath is a novel peripheral intravenous (PIV) catheter system originally conceived at the University of Michigan (Ann Arbor) by Tangent's technical founders, Adrienne Harris, Elyse Kemmerer and Steven White, all of whom remain with the company. PIV catheters are frequently used in hospitals and other healthcare settings to administer drugs and fluids to patients through a vein in the hand or arm. More than 334 million PIV catheters are sold in the US annually. "Our research indicates a high level of dissatisfaction among healthcare workers and patients with current peripheral IV catheters," said Harry Wilcox, Partner at Flagship Ventures. "The NovaCath system has been designed to reduce the problems commonly associated with current PIV catheters and improve healthcare worker safety and patient comfort."
In other financings news:
• WebMD Health (New York) said that its board adopted a stockholder rights plan in which preferred stock purchase rights will be distributed as a dividend at the rate of one right per common share to stockholders of record on Nov. 14.
Each right will give stockholders the opportunity to buy one one-thousandth of a share (a unit) of Series A junior preferred stock of the company at an exercise price of $153. The rights will be exercisable only if a person or group acquires beneficial ownership of 12% or more of the company's outstanding common stock or commences a tender or exchange offer which, upon consummation, would result in such person or group being the beneficial owner of 12% or more of the company's outstanding common stock. The rights also will be exercisable if a person or group that already owns 12% or more of the company's outstanding common stock acquires additional shares equal to 1% or more of the company's then outstanding common stock.
The rights expire on Nov. 1, 2012, or earlier if redeemed by the company or if the stockholders right plan is so amended. The company will generally be entitled to redeem the rights at $0.01 per right at any time until the public announcement that a person or group has acquired 12% or more of the company's common stock.
• Health Care REIT (Toledo, Ohio) said it intends to offer, subject to market and other conditions, 10 million shares of its common stock. Health Care REIT intends to grant the underwriters a 30-day option to purchase up to an additional 1.5 million shares of its common stock to cover any over-allotments. The company intends to use the net proceeds from this offering for general corporate purposes, including investing in healthcare and seniors housing properties and repaying borrowings under the company's unsecured line of credit and other outstanding indebtedness.
BofA Merrill Lynch and Morgan Stanley will act as joint book-running managers for the offering.
Health Care REIT is a real estate investment trust that invests across the full spectrum of seniors housing and healthcare real estate.