A Medical Device Daily
Reva Medical (San Diego), a company developing bioresorbable stents to treat arterial disease, reported that it has raised $42 million in a private financing led by Cerberus Capital Management and Brookside Capital, an affiliate of Bain Capital. Also participating in the round are Pequot Management and Medtronic (Minneapolis), along with previous investors Domain Partners and Group Outcome.
The proceeds will be used to continue the development and clinical testing of Reva’s bioresorbable stent products.
“Reva continues to develop what we believe to be the most promising approach for a stent that performs its important function and then safely dissolves,” said Bob Stockman, Reva chairman.
Boston Scientific (Natick, Massachusetts) maintains its equity position in the company and will hold an exclusive option for global distribution for the company’s resorbable coronary and peripheral stent products.
Reva is developing interventional medical devices that leverage the company’s stent designs and biomaterial technologies to improve the treatment of vascular disease.
Third Wave Technologies (Madison, Wisconsin) reported that it has secured a five-year, $25 million line of credit with Deerfield Management, a healthcare investment fund. The credit facility is available to provide Third Wave with additional capital as it executes its plan for leadership in the HPV and hospital laboratory markets.
“This facility gives Third Wave additional flexibility to execute on our growth strategy and accelerate our plan to become the market leader in HPV testing,” said Kevin Conroy, president/CEO of Third Wave.
Should Third Wave elect to borrow funds, amounts outstanding under the line of credit will bear interest at 7.75% per annum. A 2% per annum non-usage fee will be assessed on the undrawn amount. In consideration for providing the credit facility, Third Wave has issued to Deerfield a five-year warrant to purchase 1.815 million shares of Third Wave stock at $8.36 a share.
Third Wave develops molecular diagnostic reagents for a variety of DNA and RNA analysis applications. The company offers a number of products based on its Invader® chemistry for clinical testing. It offers in vitro diagnostic kits, and analyte specific, general purpose, and research use only reagents for nucleic acid analysis
In other financing news:
• Asuragen (Austin, Texas), a privately held molecular diagnostics company and molecular biology service provider, reported that it has secured $18.5 million in Series B financing. This funding round comes on top of a $49 million Series A round the company closed in March 2006, it said.
The Series B round was raised from a combination of previous investors from the Series A round and new investors. PTV Sciences, a new investor, joined previous investors including Telegraph Hill Partners and Growth Capital Partners in the new round.
“We are excited about the addition of PTV Sciences to an already strong syndicate of investors in the molecular diagnostics arena,” said Dr. Matthew Winkler, CEO /CSO of Asuragen. “Evan Melrose from PTV will be a great addition to our board of directors. These proceeds give us the resources to build on the momentum we have created since Asuragen was formed in 2006, allowing us to advance our efforts in developing next generation oncology molecular diagnostics products and services.”
In addition to its diagnostic research program, the company is developing microRNAs as cancer therapeutics and is conducting pre-clinical development of its lead candidates.
• Caprius (Hackensack, New Jersey) reported that it has completed a private placement for $4.7 million of a newly created series of preferred stock to several investors including Special Situations Fund, Great Point Partners and Dolphin Asset Management.
This series of preferred stock is initially convertible to 7.8 million shares of common stock and warrants to purchase an additional 3.1 million shares, at an exercise price of 80 cents per share. The net proceeds of about $4.4 million, after placement fees and expenses, will be used for working capital.
Commenting on the placement, Dwight Morgan, president/CEO of Caprius, said that the new financing “positions us very well to execute on the growing market opportunities presented by the proven effectiveness of the SteriMed technology as a cost-efficient, safe and environmentally friendly system for the on-site disposal of medical waste. This capital raise provides the resources we need to scale our manufacturing capabilities to meet the strong demand for our products and to pursue our strategic plans for aggressive international growth and the expansion of our presence in the domestic market.”
Caprius is a manufacturer of equipment for the on-site disinfection of infectious medical waste through its subsidiary, M.C.M. Environmental Technologies (also Hackensack). The company’s SteriMed technology simultaneously shreds and disinfects solid and liquid regulated medical waste, reducing the volume by up to 90% and rendering it harmless for disposal as ordinary waste.
• Universal Health Services (UHS; Edina, Minnesota) reported that its board authorized an additional 5 million share repurchase program to supplement the 1 million shares remaining under previously disclosed authorizations.
The company, from time to time as conditions allow, may purchase shares on the open market or in negotiated private transactions.
UHS is one of the nation’s largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico.