A Medical Device Daily

Exact Sciences (Marlborough, Massachusetts) report-ed that it has closed an $8.2 million private placement of 4.3 million shares of its common stock. It also said that it has entered into a collaboration and license agreement with the Mayo Clinic (Rochester, Minnesota).

The collaborative relationship with Mayo Clinic is focused on developing patient-friendly diagnostics that reduce deaths from colorectal cancer. According to projections by the American Cancer Society (Atlanta) there will be 146,970 new cases of colorectal cancer and 49,200 deaths attributable to the disease in 2009 in the U.S. It is the second-most-common cause of cancer-related death following lung cancer.

Under the license agreement, Exact has secured exclusive rights to intellectual property developed by David Ahlquist, MD, Mayo Clinic. The licensed patents cover advances in sample processing, analytical testing and data analysis associated with non-invasive, stool-based DNA screening for colorectal cancer. Under the license agreement, Exact will make up-front, milestone and royalty payments to Mayo Clinic, and will provide funding for future work in Ahlquist's lab.

Exact and Mayo Clinic also have agreed to enter into a broad research and development relationship with Ahlquist's laboratory. The relationship will provide Exact with an experienced research and development team that will focus its initial efforts on the company's colorectal screening test. Exact retains exclusive rights to commercialize the breakthroughs that result from this collaboration.

"There are very few ways to non-invasively detect this deadly, but highly treatable cancer," said Kevin Conroy, president/CEO of Exact. "Our relationship with Mayo Clinic secures exclusive access to additional test methods, strengthens our intellectual property portfolio and complements the strong relationship that we have with Dr. Bert Vogelstein's laboratory at Johns Hopkins University [Baltimore]."

Exact is a molecular diagnostics company focused on colorectal cancer.

In other financing news, Tenet Healthcare (Dallas) reported that, pursuant to the terms of its previously disclosed cash tender to purchase up to $1 billion aggregate principal amount of its outstanding 9.875% senior notes due 2014, $891.4 million aggregate principal amount of the outstanding notes (about 89.14%) had been validly tendered prior to the expiration of the early tender time at 5:00 pm, EST time, on June 11 (Medical Device Daily, June 1, 2009).

Tenet has accepted for purchase all notes tendered prior to the early tender time. Holders of these notes will receive total consideration of $1,000 per $1,000 principal amount of notes, which includes an early tender premium of $30 per $1,000 principal amount of notes, plus any accrued and unpaid interest up to, but not including, the early settlement date.

In accepting for purchase the notes tendered prior to the early tender time, Tenet has waived the condition to early settlement relating to the principal amount of notes to be issued in the refinancing transaction described in the offer to purchase. In addition, Tenet has waived the limitation on the maximum principal amount of notes to be purchased pursuant to the tender offer. Accordingly, notes tendered and accepted will not be subject to proration. Tenet said it expects to settle all notes tendered by the early tender time today. n

Holders of notes that are tendered after the early tender time but on or prior to the expiration of the tender offer and accepted will receive total consideration of $970 per $1,000 principal amount of notes, plus any accrued and unpaid interest up to, but not including, the final settlement date. The tender offer is set to expire at midnight, EDT, on June 25.