A Medical Device Daily

Gen-Probe (San Diego) reported that its board of directors has authorized the repurchase of up to $100 million of the company's common stock over the next year.

"Based on our healthy balance sheet and strong anticipated cash flows, we believe we can increase long-term shareholder value and offset dilution from employee option programs by buying back stock, while at the same time retaining the strategic and operational flexibility to invest appropriately in our business," said Herm Rosenman, Gen-Probe's senior VP - finance, and CFO.

Repurchases may occur from time to time and at Gen-Probe's discretion, depending on market conditions and other factors. Shares may be purchased on the open market or through private transactions, pursuant to Rule 10b5-1 trading plans or other available means.

In 4Q09, Gen-Probe had 49.5 million shares of common stock outstanding on a weighted average, diluted basis. As of Dec. 31, 2009, the company had $501.1 million of cash, cash equivalents and marketable securities, and $240.8 million of short-term debt.

The company pays interest on substantially all this debt at a rate 0.6% above the one-month London Interbank Offered Rate (LIBOR), which was recently below 0.3%. Gen-Probe generated $145 million of cash from operating activities in 2009, while spending $32.4 million on property, plant and equipment, leading to free cash flow of $112.7 million.

In other financing news:

• Triathlon Medical Ventures (Cincinnati) and Affinity Capital Management (Minneapolis) reported launching a $10 million venture fund that will make seed investments in biotech, medical device and other life-sciences startups.

The fund will primarily target Minnesota-based companies, making initial investments of between $250,000 and $500,000 in each startup.

• Luna Innovations (Roanoke, Virginia) reported that it has entered into a $5 million revolving credit facility with Silicon Valley Bank (SVB). In May 2008, Luna entered into a $10 million credit facility with SVB that included a 4-year-term debt of $5 million and a remaining facility available under a four-year revolving line of credit of up to $10 million. Luna paid off the original $5 million term debt and terminated the prior facility in July 2009.

"SVB has once again put forth a credit facility that shows its support of Luna and our business model in the midst of the tough economy," said Scott Graeff, COO and Treasurer. "SVB is a bank that clearly understands the importance of technology in the global marketplace. We are very pleased that it remains committed to our long relationship."

• Neovasc (Vancouver, British Columbia) reported that it has completed the final tranche of a previously reported non-brokered private placement

The aggregate gross proceeds of the financing totaled $1.537 million through placement of about 5.692 million units at a price of 27 cents per unit, comprised of a first tranche of $1.329 million reported late last month (Medical Device Daily Jan. 29, 2010) and this second tranche of $208,000.

The proceeds of the offering will be used primarily to fund the COSIRA trial, a multi-center clinical trial intended to demonstrate the safety and efficacy of the company's Reducer product for treating refractory angina.

Each unit consists of one common share of Neovasc and one-half of one common share purchase warrant of Neovasc. Each whole warrant entitles the holder to purchase one common share of Neovasc at the exercise price of 40 cents per share for a period of one year after the closing date of the offering.

In addition, Neovasc said that it granted a total of 1,220,000 options to directors and executive management of the company. These options have an exercise price of $0.355, equivalent to the Neovasc market price of $0.355 at closing on Feb. 18, 2010.

Of the issued options, 525,000 vest over a four-year-period in accordance with the company's existing stock option plan, 95,000 options vest immediately and 600,000 vest after 12 months upon management achieving certain performance milestones established by the board of directors.