A Medical Device Daily
DGIMED Ortho (Minnetonka, Minnesota) reported completing a $3.4 million Series A round of financing to support the further development of a new system to assist orthopedic surgeons in the delivery of long bone intramedullary nail implants. Dan Gladney, founder and chairman, acquired the technology rights through an agreement with the Midwest Orthopedic Research Foundation, Devicix, and Ramon Gustilo, MD, in 2008.
The funds will be used to fund the development of a drill and intramedullary nail system. The company said it plans to file a 510(k) submission in the near future. Cedar Point Capital was DGIMED's sales agent for this funding and the company's legal counsel, Oppenheimer Wolff & Donnelly, represented it.
DGIMED also reported hiring two senior executives. Philip Smith has been hired as the company's president/CEO. Smith most recently was executive VP of strategy and business development for Vital Images. Scott Youngstrom has been hired as the company's VP of finance and COO. Youngstrom also will serve as CFO. He was most recently the VP of finance and CFO for Anulex Technologies, Enpath Medical, Compex Technologies, and Acist Medical Systems.
DGIMED, a start-up company founded by Dan Gladney, also said it has recently entered into a five-year lease agreement for roughly 11,100 square feet of office, lab and warehouse space in Minnetonka. The company plans to move into its new facility in mid-April.
It is temporarily located at Devicix in Eden Prairie, Minnesota. Devicix is a medical device engineering firm responsible for the development of the drill system technology.
In other financing activity, I-Flow (Lake Forest, California) reported that its board of directors has authorized the repurchase of up to an additional 2 million shares of the company's stock under I-Flow's previously reported stock repurchase program, for a total of up to 4 million shares authorized for repurchase under the program.
I-Flow also said it has entered into a pre-arranged stock repurchase plan to facilitate the stock repurchase program. The company's third-party broker has the authority to repurchase the company's shares in the open market or privately negotiated transactions in accordance with the terms of the plan.
The stock repurchase program was also extended to Feb. 28, 2010, unless terminated sooner by the board. As of Monday the company had repurchased about 1,036,000 shares under the program, which was initially reported late last month.
I-Flow develops drug delivery systems and surgical products for post-surgical pain relief and surgical site care.