A Medical Device Daily

Phytel (Dallas) said it recently attracted $14.2 million in funding from investors, including Polaris Venture Partners, Caris, and LAH Investments. The investment will be used, in part, to advance product development initiatives that will expand Phytel's market share and help the company support the efforts of physicians across the country to improve patient care, Phytel said.

"Phytel's combination of visionary leadership and superb timing has made its offering a winner in today's healthcare marketplace. The company's web-based service helps doctors better manage their patients, and, as importantly, Phytel has proven its ability to help grow practice revenues through increased bookings," said David Barrett, a general partner of Polaris Venture Partners.

"Phytel's superior product and its proven business model offer strong reasons to invest in the company, and we welcome participation by Polaris, Caris, and LAH. Phytel is uniquely positioned to benefit from widespread efforts to help physicians provide better, more timely care to their patients," said Jon Halbert, chairman of Phytel.

In other financing activity, Chattem (Chattanooga, Tennessee) reported that, pursuant to the terms of the indentures governing its 2% convertible senior notes due 2013 and 1.625% convertible senior notes due 2014, a fundamental change occurred on Tuesday as a result of the successful completion of the tender offer commenced by River Acquisition, a Tennessee corporation and an indirect wholly-owned subsidiary of sanofi-aventis, a French soci t anonyme, on Jan. 11, for all outstanding shares of common stock of Chattem for $93.50 a share, net to the seller in cash, without interest and less any required withholding taxes pursuant to the agreement and plan of merger, dated Dec. 20, among Chattem, sanofi-aventis and River Acquisition.

The holders of the notes have the right to convert their notes according to the terms of the indentures at any time before the close of business on the business day immediately preceding the 45 day after the fundamental change effective date. Chattem said it intends to settle conversion of the notes, in cash, based on a conversion value determined with a price per share of Chattem common stock of $93.50, as soon as practicable after holders surrender their notes for conversion.