A Medical Device Daily

Power Medical Interventions’ (PMI; Langhorne, Pennsylvania) IPO priced at $11 a share, a dollar below its estimated $12 to $14 range (Medical Device Daily, Oct. 24, 2007).

The company said it will receive proceeds from the 3.85 million-share offering of about $35.9 million. The company plans to use the IPO proceeds for general corporate purposes, including sales and marketing efforts, research and development, expansion of manufacturing capabilities, purchase of capital equipment and for possible acquisitions.

PMI uses micro-robotic and digital technologies to develop surgical instruments used to cut tissue, close wounds and reconnect tubular anatomical structures. The company said computer-assisted control allows its instruments to offer more powerful and consistent cutting and stapling force than conventional, manually operated devices.

The company, which has released 15 surgical instruments since 2001, currently focuses its marketing efforts on minimally invasive colorectal, bariatric and thoracic surgery.

For the six months ended June 30, Power Medical widened its loss applicable to common shares to $18.4 million, from $15.6 million in the first half of 2006. During the same period, Power Medical’s sales fell to $4.2 million from $4.5 million.

Jefferies & Co. and Lazard Capital Markets are serving as lead managers of the deal. William Blair & Co. is also underwriting the offering. PMI has also given the underwriters the option to buy up to 577,500 additional shares to cover any over-allotments.

PMIfirst disclosed its proposed IPO in May (MDD, May 23, 2007), saying it hoped to raise up to $100 million.

The company’s stock is trading on the Nasdaq Stock Market under the symbol PMII.

Tactile Systems Technology (TST; Minneapolis), which develops products to treat vascular disorders such as lymphedema, reported the culmination of a funding effort resulting in $11.8 million raised.

The round is being led by Galen Partners. Funding also includes existing TST shareholders and other private investors.

Lymphedema is the abnormal accumulation of lymph fluid in body tissues, typically in the dermis of the arms or legs due to blockage or inadequacy of lymph circulation. It is often the unintended consequence of cancer treatment. About 25% of breast cancer survivors develop lymphedema within two years of treatment.

The company’s Flexitouch system consists of a programmable controller that attaches to segmented garments covering the limb, trunk and chest. Therapy is delivered through chambers in the garments that inflate and deflate sequentially, simulating manual lymphatic drainage. This at-home therapy usually follows manual lymphatic therapy provided by therapists in clinical settings. The company received FDA marketing clearance for the Flexitouch system in 2002 and recently for the treatment of wounds.

“This funding will enable us to accelerate our growth in the market and provide important therapy to the increasing number of patients with lymphedema. We intend to increase the size of our direct sales force, fund larger clinical trials proving product efficacy and expand into new clinical indications, such as the treatment of chronic wounds,” said company CEO Gerald Mattys.

In other financing news:

• Crdentia (Dallas), a healthcare staffing company, reported that it has completed a private placement of a $5 million equity offering. The proceeds from this offering will be used for working capital and strategic initiatives.

“Completion of this new equity financing is very important to Crdentia as it allows the company to fully implement its strategic growth plans with the goal of establishing Crdentia as one of the strongest full-service suppliers of healthcare personnel in the Sun Belt and one of the largest healthcare staffing companies in the country,” said John Kaiser, CEO.

Terms of the financing include 15.7 million shares of common stock and 7.8 million five-year warrants to purchase common stock for 35 cents per share in a cash only exercise. A second and final closing for the offering will occur within 10 business days from the date of this initial $5 million funding. Global Hunter Securities acted as placement agent for the financing.

• Cardica (Redwood City, California) reported that it plans to offer, subject to market and other conditions, 1.5 million shares of its common stock for sale by Cardica and 2,579,795 shares of its common stock for sale by a selling stockholder in an underwritten public offering.

The company will not receive any proceeds from sales of shares made by the selling stockholder. It expects to grant the underwriters a 30-day option to purchase up to an additional 611,969 shares of common stock to cover any over-allotments.

William Blair & Co. is acting as the sole book-running manager of the offering. Allen & Co., Needham & Co., and Merriman Curhan Ford & Co. will act as co-managers of the offering.

Cardica is a provider of automated anastomosis systems for coronary artery bypass graft (CABG) surgery.

• Insulet (Bedford, Massachusetts), the maker of the OmniPod insulin management system, reported that it has filed a registration statement relating to an underwritten public offering of 4,898,398 shares of its common stock, all of which are being sold by selling stockholders.

Insulet has granted the underwriters the right to purchase up to an additional 734,759 shares to cover any over-allotments.