A Medical Device Daily

Novasys Medical (Newark, New Jersey), a developer of therapies in women's health, reported that it has secured $49.5 million in Series D preferred stock financing.

The round was led by Versant Ventures, with ThreeArch Partners and Skyline Ventures also participating as new investors. The round also included participation by existing investors Affinity Capital Management, Alloy Ventures, Delphi Ventures, GBS Venture Partners, Invesco Private Capital, JP Morgan Partners, and Onset Ventures.

"This financing will enable the company to further its efforts to bring the innovative Renessa non-surgical treatment to women suffering from stress urinary incontinence (SUI), said Debra Reisenthel, president/CEO of Novasys. "The funds will allow us to continue our clinical studies as well as secure reimbursement for the Renessa procedure."

SUI is the involuntary leakage of urine associated with laughing, coughing, sneezing and recreational activities. The condition is caused by a variety of factors, most commonly childbirth. With currently available surgical and non-surgical SUI therapies, many patients and physicians have concerns about safety, recovery, compliance, and/or effectiveness. Experts estimate that 80% of women with SUI do not seek treatment of any kind because of these concerns.

The FDA-cleared Renessa system includes a small probe which a physician passes through the natural opening of the urethra (transurethral). The probe heats multiple small treatment sites in the submucosa of the bladder neck and upper urethra, denaturing collagen in the tissue, thereby reducing or eliminating leaks. The Renessa treatment can be performed in the convenience of a physician's office using local anesthesia. There are no incisions, bandages or dressings required.

To date, more than 300 urologists, urogynecologists and gynecologists have been trained and have performed the Renessa procedure in more than 2,500 patients.

OmniGuide (Cambridge, Massachusetts), the developer of a flexible CO2 laser scalpel enabling new procedures in minimally invasive surgery, reported the closing of a $25 million series E private equity round.

Psilos Group, a healthcare venture capital and private equity firm, led the funding round which includes previous OmniGuide investors: Ray Stata, Stata Venture Partners, 3i, Argonaut Ventures, ESI, Gainesborough Investments, Jeff Swartz and Westbury Partners. Thomas Weisel Partners served as advisor and placement agent for OmniGuide.

Since commercially launching in late-2006, OmniGuide optical scalpels have been used in minimally invasive surgeries in the U.S. and recently in Europe. To date, OmniGuide said its scalpels have been used successfully in more than 3,000 surgeries for treatment of head and neck cancers, for removal of life-threatening airway papillomas in adults and children, and for hearing restoration surgeries.

"Today's investment will help fuel OmniGuide's expansion into additional clinical markets such as otology, spinal surgery, neurosurgery, gastroenterology and gynecology," said Yoel Fink, president/CEO of OmniGuide.

In other financing news: Exactech (Gainesville, Florida), a developer and producer of bone and joint restoration products for hip, knee, shoulder, spine and biologic materials, reported the closing of its previously disclsoed sale of 877,391 shares of its common stock to certain institutional investors at a price of $23 per share (Medical Device Daily, May 12, 2008).

The sale resulted in gross proceeds of about $20.2 million and net proceeds of roughly $18.8 million after offering expenses and placement agency fees.

The company said it expects to use the net proceeds from the sale of these securities for the payment of debt, and the remainder, if any, for general corporate purposes, including working capital, product development and capital expenditures.

Thomas Weisel Partners and Canaccord Adams served as co-lead agents for the transaction. Robert W. Baird & Co. and Noble Financial Capital Markets served as additional co-agents.