A Diagnostics & Imaging Week

Cianna Medical (Aliso Viejo, California) reported that it has completed an initial funding round totaling $9 million.

The Series A funding will be used to support further commercialization of the company’s SAVI technology for breast brachytherapy.

Participating in the funding round were initial investors in Cianna (formerly known as BioLucent), including Fog City Fund, Windamere Venture Partners, and several private individuals.

This is the first financing round since Cianna Medical was created as a spinout from BioLucent last September. Cianna was created concurrent with the sale of BioLucent’s (Bedford, Massachusetts) MammoPad breast cushion business to Hologic (also Bedford).

The SAVI applicator provides a shortened course of high-dose radiation therapy for early-stage breast cancer patients following lumpectomy surgery. With this treatment, known as accelerated partial breast irradiation radiation is delivered from within the breast and targets the area where the cancer is most likely to recur. This approach reduces treatment time from six or seven weeks — which is generally required with conventional whole-breast irradiation — to just five days, according to the company.

The company said the device allows physicians to precisely target radiation to the area that needs it most, minimizing exposure to healthy tissue. The company claims that the SAVI is the only APBI applicator that can contour the radiation dose to the size and shape of the cavity bed.

Adnavance Technologies (Vancouver, British Columbia) a developer of new direct detection molecular diagnostic tests for medical applications, reported that it completed a Series B financing totaling C$3.7 million ($3.78 million).

The proceeds will fund continued development and expansion of the company’s metalized-DNA (M-DNA) technology. The company also reported that V. Randy White, PhD, joined the company as the new CEO.

The financing was led by Working Opportunity Fund, managed by GrowthWorks Capital, JovInvestment Management, and Business Development Bank of Canada.

“We expect that our patented direct detection molecular diagnostic technology will serve to decentralize the worldwide molecular testing market by enabling hospitals and smaller independent laboratories to conduct their own testing, reducing healthcare costs and enabling patients to be evaluated and treated at their point of care,” said White. “Our technology is sensitive enough to directly detect DNA targets in human samples using a small, fully automated desktop device.”

Adnavance said it believes that M-DNA direct detection technology may eliminate the need for target amplification for a large number of molecular diagnostic tests.

The company is initially developing an M-DNA molecular diagnostic kit targeting MRSA (methicillin-resistant Staph aureus), which it expects to launch as early as 2010.

In other financing activity:

• NanoImaging Services (San Diego), a provider of high-resolution, 3-D transmission electron microscope (TEM) imaging services to manufacturers of large molecule biopharmaceuticals, reported that it has completed a round of financing led by Merck Capital Ventures. The $1.5 million investment will be used to expand the company’s service laboratory.

NanoImaging Services, currently located in northern San Diego, also said it will relocate to a larger facility in nearby La Jolla next month.

The company offers a range of services including simple visual inspection; statistical characterization; antibody/labeling experiments; and nanometer-scale, 3-D reconstruction to the pharmaceutical, biotechnology and nanotechnology industries,

• Predictive medicine company PreMD (Toronto) reported an agreement with Midsummer Investment for offering of C$1.22 million in unsecured debentures.

The debentures mature 18 months after issuance at an amount equal to C$1,176 per C$1,000 principal amount. PreMD has agreed to certain pre-payable forced redemptions at the option of the holders or the company.

The placement proceeds are to be used for general corporate purposes.

The company also will issue about 5 million common share purchase warrants, exercisable for five years into one common share at $0.2759, equal to 100% of the five-day volume-weighted average price of the common shares on the Toronto Stock Exchange.

The sale of the debentures and warrants is expected to close on or before March 12.

PreMD develops rapid, non-invasive tests for the early detection of diseases.

• Iris International (Chatsworth, California), maker of urinalysis systems and consumables for use in hospitals and commercial laboratories, said its board has authorized repurchase of up to $15 million in common shares over a 12-month period.

Iris said it expects to fund the share repurchase from cash on hand. The company has about $30 million in cash with no debt and is expecting strong cash flows from operations in 2008.