A Diagnostics & Imaging Week
CardioNet (San Diego) last week reported raising about $81 million with its initial public offering of 4.5 million shares, priced at $18, the lower end of its expected range. The company said it expects net proceeds of $47 million which it will use to repay debt, for research and development and to buy or license products or businesses.
The maker of products to monitor clinical information had cut its IPO size to 3.4 million shares on March 18 and had forecast an $18 to $20 a share range.
In August last year, the company had initially filed for a $150 million IPO, and in February this year said it would sell 6.6 million shares for $22 to $24 each.
Citi, Lehman Brothers, Leerink Swann and Thomas Weisel Partners are underwriters for the IPO.
The company will sell 3 million shares in the offering, and stockholder Guidant Investment Corp. (GIC) will sell an additional 1.5 million, it said in a regulatory filing. GIC has granted to the underwriters a 30-day option to purchase up to an additional 675,000 shares of common stock to cover any over-allotments.
The CardioNet system incorporates a lightweight patient-worn sensor attached to electrodes that capture two-lead ECG data measuring electrical activity of the heart and communicates wirelessly with a compact, handheld monitor. The monitor analyzes incoming heartbeat-by-heartbeat information from the sensor on a real-time basis by applying proprietary algorithms designed to detect arrhythmias.
When the monitor detects an arrhythmic event, it automatically transmits the ECG to the CardioNet Monitoring Center, even in the absence of symptoms noticed by the patient and without patient involvement. At the monitoring center, certified cardiac monitoring specialists analyze the sent data, respond to urgent events and report results in the manner prescribed by the physician.
CardioNet has incurred net losses from its inception through Dec. 31, 2007, including losses of $11.5 million for the year ended Dec. 31, 2005; $7.6 million for the year ended Dec. 31, 2006; and $400,000 for the year ended Dec. 31, 2007.
CardioNet common stock is expected to begin trading on the Nasdaq Global Market under the symbol BEAT.
In other financing news: Ben Franklin Technology Partners of Northeastern Pennsylvania (BFTP/NEP; Lehigh Valley, Pennsylvania), a state-funded economic development organization, said it has approved investments of $335,000 in three Pennsylvania companies.
On the med-tech side, the group said it would invest $150,000 in Third Eye Diagnostics (Bethlehem Pennsylvania), a company developing intracranial pressure monitoring technology, used to treat patients with a severe head injury, intracranial hemorrhage or swelling due to stroke.