A Medical Device Daily

NeurogesX (San Mateo, California), a biopharmaceutical company focused on developing pain management therapies, said it has entered into a securities purchase agreement in connection with a private placement to a group of institutional accredited investors and will receive roughly $25 million in gross proceeds from the sale of 4,020,910 shares of its common stock at $6.18 a share, the last closing price prior to signing of NeurogesX common stock on Nasdaq, and the issuance of five-year warrants to buy 1,206,273 additional shares of NeurogesX common stock at $8.034 a share. The warrants were purchased at a price per underlying share of $0.125.

Pacific Growth Equities was the placement agent for the transaction.

NeurogesX said its initial focus is on chronic peripheral neuropathic pain, including postherpetic neuralgia (PHN), painful HIV-distal sensory polyneuropathy (HIV-DSP) and painful diabetic neuropathy. Its late-stage product portfolio is led by its product candidate NGX- 4010, a dermal patch designed to manage pain associated with peripheral neuropathic pain conditions, that the company believes offers significant advantages over other pain therapies. Three Phase III clinical trials with NGX- 4010 have been completed and have met their primary endpoints, two in PHN and one in painful HIV-DSP, the company said.

In other financing activity:

• AMDL (Tustin, California), a developer of tests for the early detection of cancer and other serious diseases, reported the closing of its combined Regulation D/Regulation S private unit offering of 2,007,508 shares of common stock and warrants to buy 1,003,755 shares of common stock, generating net proceeds of about $5,433,000. The shares of AMDL common stock were sold at $3.09 a share and the four-year warrants included in the units are exercisable at $4.74 a share. Warrants to buy an additional 200,751 shares were issued to AMDL’s placement agents at the same exercise price. The company agreed to file a registration statement within 60 days of the closing to register the resale of the shares of common stock and the shares issuable on exercise of the warrants included in the units and the placement agent warrants. Spencer Clarke acted as AMDL’s principal placement agent for sales in the U.S., and Galileo Asset Management was the agent for sales outside the U.S.

• North American Scientific (Chatsworth, California) reported that it has entered into an eighth amendment and forbearance to the loan and security agreement with Silicon Valley Bank. The amendment includes: an extension of the maturity date of the loan agreement to the earlier of Feb. 1 or the date the company completes its private placement; a forbearance by the bank from exercising its rights and remedies against the company, until such time as the bank determines in its discretion to cease such forbearance, due to the defaults under the loan agreement resulting from the company failing to comply with the tangible net worth covenant in the agreement as of July 31, Aug. 31, Sept. 30, and Oct. 31; and a consent from the bank to allow the company to repay its outstanding loan from John Friede in the amount of $250,000.

North American Scientific granted a warrant to the bank to purchase that number of shares of the company’s common stock as shall be equal to $50,000 divided by the warrant price. The warrant will expire in five years unless previously exercised.

North American Scientific says its products provide physicians with tools for the treatment of various types of cancers. They include Prospera brachytherapy seeds and SurTRAK needles and strands used primarily in the treatment of prostate cancer.