A Medical Device Daily

Delcath Systems (New York), a company developing a drug delivery device to treat cancers of the liver, reported raising $32.4 million in net proceeds from a public stock offering.

The figure is above the $30.6 million that the company had estimated last week when it announced the pricing for the offer.

The offering of nearly 9.8 million common shares at $3.60 a share included nearly 1.3 million shares sold upon exercise by the underwriters under their overallotment option. All shares in the offering were sold by Delcath, which plans to use proceeds for general corporate purposes, including regulatory approval, clinical trials, capital expenditures and working capital.

Cowen and Co. acted as the offering's book-running manager, with Canaccord Adams, Wedbush PacGrow Life Sciences and Craig-Hallum Capital Group as co-managers.

Delcath is developing the Percutaneous Hepatic Perfusion (PHP) System for the regional delivery of melphalan to the liver.

"Since we last communicated with our shareholders in late July, our team has achieved many significant milestones as we move into the first regulatory reviews for our PHP System and strive towards European commercialization in 2010," said Eamonn Hobbs, president/CEO. "Our most recent accomplishment is yesterday's closing of our common stock public offering, which raised more than $32.4 million and significantly improves our balance sheet."

Hobbs said the offering met all of the key goals established by the board of directors and provides the company with the resources required to execute its regulatory approval and go-to-market strategies.