A Medical Device Daily Staff Report
Strand Diagnostics (Indianapolis), the maker of the know error system, and NantWorks (Los Angeles) said they have entered into an agreement whereby Strand will receive up to $30 million in funding from NantWorks for the next three years. The money will be used to accelerate the company's growth, scale its operations infrastructure, and expand sales and marketing efforts.
Using bar coding, forensic principles, and DNA matching, the know error system is designed to ensure that surgical biopsy samples being evaluated belong exclusively to the patient being diagnosed. Less than three years after the company's launch, hundreds of physicians in a variety of specialties have incorporated the know error system as their standard for patient care. Currently, the most popular offerings are the know error systems for breast biopsy and prostate biopsy, the company claims.
Strand co-founder Peter Knapp said, "We are excited to have this relationship with NantWorks as DNA Specimen Provenance Assignment – or DSPA testing – increasingly becomes the standard of care for the diagnosis of cancer and other conditions. DSPA testing completes the cancer diagnostic testing cycle to provide patients a complete and accurate diagnosis, allowing physicians to proceed with the best treatment for the appropriate patient."
NantWorks says its core mission is to converge a wide range of technologies to transform scientific research and healthcare.
In other financings news:
• Relievant Medsystems (Redwood City, California), a privately held device company pioneering the therapeutic use of basivertebral nerve ablation for the treatment of chronic axial low back pain, has secured $30 million in a Series D equity financing to advance and expand the company's clinical development programs. New Enterprise Associates (NEA) led the financing with participation from existing venture capital investors Canaan Partners, Emergent Medical Partners, Morgenthaler Ventures, and Onset Ventures.
"NEA is excited to partner with the Relievant founders and management team because of their effort to bring a game-changing technology to the millions of people who suffer from chronic axial low back pain," said NEA Partner Justin Klein, MD. "Relievant's early clinical results indicate that Intracept has the potential to be a highly effective, durable, safe, and minimally invasive procedure to address a multi-billion dollar market. As important, we believe the company's dedication to demonstrating the benefits of Intracept through a rigorous, randomized controlled trial — working in close partnership with its clinical advisors and the FDA — is exactly the right approach to providing a therapy that addresses the needs of patients, spine surgeons and interventionalists, and payors."
• Health Care REIT (Toledo, Ohio) has priced $600 million in aggregate principal amount of 4.125% senior unsecured notes due April 1, 2019. The notes were priced at 99.694% of their face amount to yield 4.176%. Subject to customary closing conditions, the offering is expected to close on April 3, 2012.
The company intends to use the net proceeds from this offering to redeem or settle upon conversion about $126 million aggregate outstanding principal amount of its 4.75% convertible senior notes due 2026 at a redemption price of 100% of principal amount plus accrued and unpaid interest or the conversion price specified in those notes, as the case may be, to repay up to $226 million of certain secured indebtedness and, to the extent of remaining proceeds, for general corporate purposes, including investing in healthcare and seniors housing properties.
Barclays Capital, J.P. Morgan Securities, and UBS Securities acted 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.