A Medical Device Daily

Volcano (Rancho Cordova, California) reported that it intends to sell, subject to market and other conditions, 6 million shares of newly issued common stock in accordance with shelf registration statement filed with the Securities and Exchange Commission. The company said it intends to grant the underwriters a 30-day option to purchase up to an additional 900,000 shares of common stock.

Based on the company’s $17.18 stock closing price on Monday, the company stands to raise up to $118.54 million from the offering before expenses.

Last month, Volcano filed with the SEC to sell up to $200 million in securities.

Volcano has about 38.7 million shares outstanding, according to its most recent quarterly report, filed in August.

Volcano offers a suite of devices designed to facilitate endovascular procedures and enhance the diagnosis of vascular and structural heart diseases and guide therapies.

J.P. Morgan Securities, Banc of America Securities and Piper Jaffray & Co. will serve as joint book-running managers in the offering, with Bear, Stearns & Co. serving as co-manager.

AngioScore (Fremont, California) reported completing a $30 million private equity financing.

The Series E round was led by Telegraph Hill Partners. All of AngioScore’s other existing institutional investors also participated in this round, including Psilos Group Management, QuestMark Partners, UV Partners, California Technology Ventures and Innomed Ventures.

“The completion of this round of financing provides AngioScore with significant additional resources to fund the continued ramp-up of our worldwide sales effort, expand manufacturing operations, and accelerate new product development,” said Thomas Trotter, president/CEO. “The rapid market acceptance of the AngioSculpt for both peripheral and coronary indications in the U.S. and Europe continues to exceed our expectations. In addition, we hope to begin the launch of the AngioSculpt in Japan during the first half of 2008. With an estimated three million angioplasty procedures performed annually on a worldwide basis for both peripheral and coronary artery disease, we believe the market opportunity for the AngioSculpt is very significant.”

Trotter said that next year, the company expects to introduce several additions to the product line and is excited about the potential opportunity for a drug-coated version of the AngioSculpt.

The investment banking firm of Thomas Weisel Partners was the placement agent for this transaction.

AngioScore is a developer of angioplasty catheters for use in the treatment of coronary and peripheral artery disease. The company’s flagship product, the AngioSculpt Scoring Balloon Catheter, incorporates a system of nitinol-scoring elements with a traditional balloon catheter. The scoring elements create focal concentrations of dilating force, which are designed to minimize balloon slippage and assist in the luminal expansion of stenotic arteries.

In other financing news:

• Osiris Therapeutics (Columbia, Maryland), a stem cell therapeutic company focused on developing products to treat conditions in the inflammatory, orthopedic, and cardiovascular areas, reported that it has obtained $30 million in financing from Friedli Corporate Finance. Friedli is owned by Peter Friedli who is the chairman of Osiris and its largest shareholder.

Osiris said it intends to use the net from the sale of common stock for general corporate purposes, including supporting the company’s clinical trial activities.

The company has been granted a 12-month term in which it can access the $30 million in capital in the form of common stock issuance at market or three-year notes at LIBOR plus 4% The company is not obligated to use any of the available funds and said it paid no fees in connection with the financing commitment

• Privately-held Spinal Restoration (Austin, Texas) reported that it has closed a $16 million B round of equity financing. Santé Health Ventures and MB Venture Partners joined Series A lead and founding investors Austin Ventures and Path4 Ventures in the round.

The company said it will use the funds to complete an IDE clinical trial of the Biostat disc augmentation system, a minimally invasive, biologic treatment for discogenic low back pain.

Spinal Restoration estimates more than 1 million patients suffering from chronic discogenic low back pain each year, but with no widely accepted treatment for the condition outside of spinal fusion.

• Optherion (New Haven, Connecticut), a company developing products to diagnose and treat dry and wet Age-related Macular Degeneration (AMD) and other chronic diseases involving the alternative complement system, reported that it has raised $37 million in start up financing.

Optherion’s initial focus is to develop disease-modifying therapies to prevent loss of vision in patients with dry AMD, the leading cause of blindness in people over 60 in the developed world, as well as a portfolio of tests that predict, diagnose and monitor progression of the disease.

A parallel area of company research is the development of diagnostics and therapeutics for Membranoproliferative Glomerulonephritis Type II (MPGN-II, also known as Dense Deposit Disease). This is an end-stage renal disease with an orphan-sized market prevalence, which typically manifests in individuals between 5 and 25 years of age. It is often caused by the same genetic variations underlying AMD.

The company’s technologies are also being investigated for the diagnosis and treatment of other chronic diseases related to the alternative complement system.