A Medical Device Daily

Phreesia (New York) a company that provides a free patient-intake solution in the physician’s waiting room delivering interactive healthcare content direct-to-patients, reported the close of a $10.25 million second-round of private financing. Founded in February 2005, Phreesia has received $13.25 million in financing to date. Polaris Ventures Partners, a national venture capital firm, led the financing round and was joined by first round investors HLM Venture Partners, Long River Ventures and Village Ventures.

The company said it will use the funds to continue to deploy Phreesia to more physicians’ practices, expand sales and marketing programs, increase its workforce and invest in ongoing research and development.

Alan Spoon, managing general partner at Polaris Venture Partners, will join Phreesia’s board. Polaris’ Bob Geiman will also join Phreesia’s board.

Phreesia automates patient check-in and delivers fully interactive content direct-to-patients, designed to interface with physicians’ existing and future technology. Replacing the traditional patient clipboard with a free wireless touch-screen and swipe-card-enabled PhreesiaPad should significantly improve the patient experience. According to the company

VirtualScopics (Rochester, New York) reported that it has completed a private placement of $4.35 million of Series B convertible preferred stock and warrants with a group of institutional and other accredited investors.

The company said it currently intends to use the net proceeds from the offering to expand its sales and marketing efforts, software and technology enhancements and ongoing operations.

“We are pleased with the closing of this transaction,” said Jeff Markin, president/CEO of VirtualScopics “Completing this offering will strengthen our balance sheet, expand our shareholder base and enable us to increase our sales and marketing efforts.”

The Series B Preferred Stock is initially convertible into 3,612,057 shares of the company’s common stock at an initial conversion price of $1.2043 per share, based on the volume weighted average of recent market prices. The Series B preferred stock carries a dividend of 8%, payable monthly in either cash or in shares of the company’s common stock. The company also issued to the investors warrants to purchase an aggregate of 2,167,234 shares of common stock, half of which have an initial exercise price at the conversion price per share and half at a 15% premium.

BridgePointe Master Fund (managed by Roswell Capital Partners) acted as the lead investor and BayStar Capital III Investment Fund also participated. The sole placement agent on this transaction was Canaccord Adams.

VirtualScopics is a provider of imaging solutions to accelerate drug and medical device development. It has developed a software platform for analysis and modeling of both structural and functional medical images. The platform is designed to provide a clear window into the biological activity of drugs and devices in clinical trial patients, allowing sponsors to make better decisions faster.