A Medical Device Daily

ConcepTx Medical (St. Paul, Minnesota) reported that it has closed a $4 million, Series A convertible preferred stock financing co-led by Versant Ventures and Advanced Technology Ventures (ATV).

Experienced medical device executives Mike Berman, Mike Selzer and Dale Spencer reported the formation of the company. The founders have more than 30 years of experience creating and directing Twin Cities medical device companies.

They said ConcepTx Medical was created "to identify compelling medical-device opportunities to treat large, growing and undertreated patient populations and develop them into separate businesses using a proven, capital-efficient business model designed to reduce financial risk."

Today's MDD food for med-tech thought

"Silver has been shown to be resistant to just about everything."

— David Rardin, VP Marketing and Development of Acrymed, whose company has developed a silver coating for medical devices that is designed to prevent bacteria formation

Versant Ventures and Advanced Technology Ventures have lengthy track records of success in early stage healthcare and emerging technology businesses, especially cutting edge medical devices. Each currently manages more than $1 billion in capital.

In other financings:

  • Affymetrix (Santa Clara, California) reported the closing of its previously registered offering of $275 million aggregate principal amount of unsecured 3.50% Senior Convertible Notes due 2038. The company put the offering up late last week (Medical Device Daily, Nov. 15, 2007). The company intends to use the net proceeds from the offering for working capital and general corporate purposes, which may include funding its operations, capital expenditures, potential acquisitions of businesses, product or technologies it believes to be of strategic importance and repurchases or redemption of all or a portion of its 0.75% Senior Convertible Notes due 2033. The notes will be convertible into Affymetrix common stock at an initial conversion rate of 33.191 shares per $1,000 principal amount of notes, subject to adjustment. This conversion rate is equivalent to an initial conversion price of about $30.12 per share. This represents a 39% premium to the last reported sale price of Affymetrix' common stock on the Nasdaq Global Select Market on the pricing date of Nov. 13. J.P. Morgan Securities Inc. is acting as the sole book-running manager of the offering.
  • MGT Capital Investments, (New York), a holding company focused on the healthcare information technology sector, reported that the company's CEO and chairman, Tim Paterson-Brown, has acquired an additional 500,000 shares of MGT common stock from an existing shareholder in a single private transaction at $3.50 per share, for $1.75 million. He now holds 2 million shares or 5.14% of the company. MGT Capital Investments is a holding company that focuses on investments in the global healthcare IT market.
  • CHS/Community Health Systems, (Franklin, Tennessee) a direct subsidiary of Community Health Systems, (Nashville), reported the reduction of the exchange offer period for its 8 7/8% senior notes due 2015, with the period expiring last Friday. As a result of a prior extension of the offer period, the exchange offer had been scheduled to expire on Nov. 30. On Oct. 9, CHS/CHS launched an exchange offer pursuant to which it offered to the holders of the outstanding $3.02 billion aggregate principal amount of its Notes to exchange the Notes for a like principal amount of its 8 7/8% Senior Notes due 2015 which have been registered under the Securities Act of 1933, as amended. As of the close of business on Nov. 13, U.S. Bank National Association, the exchange agent, had received tenders of notes in the aggregate principal amount of $3,016,621,000. Community Health Systems is a publicly-traded hospital company and an operator of general acute-care hospitals in non-urban and mid-size markets throughout the country.