A Diagnostics & Imaging Week

SonoSite (Bothell, Washington), maker of ultrasound equipment, reported the closing of its offering of $200 million of convertible senior notes, due 2014, with net proceeds about $193.5 million. The offering was increased by $50 million over the amount previously reported.

The seven-year notes will convert initially at 26.1792 common shares per $1,000 principal amount of notes, equivalent to an initial conversion price of about $38.20 a share.

SonoSite has granted the underwriters a 30-day option to buy up to $25 million of additional notes to cover over-allotments.

SonoSite said it intends to use the proceeds for acquisitions and general corporate purposes.

JPMorgan was the book running manager and Piper Jaffray and Savvian served as co-managers for the offering.

pSivida (Perth, Australia) reported that it closed the second tranche of its previously disclosed registered direct offering.

The second part of the closing related to the sale of 5.2 million units at $1.25 (A$1.46) a unit to Pfizer (New York) in accordance with the terms of the collaborative research and license agreement, signed April 3, between the two companies.

Net of placement agents' commissions, the company received about $6 million (A$7 million) in proceeds from the second tranche and roughly $16.7 million (A$19.5 million) in the aggregate. Since entering into the agreement, Pfizer said it has invested a total of $11.5 million (about A$13.7 million) in pSivida's equity and it is pSivida's largest shareholder, holding about 10.2% of its outstanding equity.

Each unit consists of one ADS, representing 10 ordinary shares, and one warrant to purchase 0.40 ADS, with a warrant exercise price of $1.65 (A$1.92) per ADS, exercisable from the date of issuance through the fifth anniversary of the issuance.

Cowen and Company acted as lead placement agent, and JMP Securities acted as co-agent in the offering.

In addition, pSivida reported completing a sale of ordinary shares and warrants at A$0.146 ($0.125) per unit, with each unit consisting of one ordinary share and one warrant to purchase 0.40 ordinary share at an exercise price of A$0.192 ($0.165) per ordinary share to an investor in Australia.

The sale of roughly 20.5 million units netted pSivida an additional A$3 million (about $2.6 million).

In other financing news:

• iNTELOMED and the Pittsburgh Life Sciences Greenhouse (PLSG; Pittsburgh) reported that PLSG will invest $100,000 in iNTELOMED.

iNTELOMED said the investment will be used to support clinical proof-of-concept testing and prototype development of CVInsight, a noninvasive device that, it says, "overcomes the limitations of the current protocol of using static vital signs as a basis for assessing cardiovascular sufficiency."

The CVInsight device is a rapid bedside test providing a measure of a patient's cardiovascular stability. The assessment is performed using a stress test created from a passive leg raise, which is "a proven way" to create a safe cardiovascular "stress" measurement, according to the company.

The first application of the CVInsight device will focus on heart failure patients in critical care centers such as hospital intensive care units. Statistics show that heart failure patients are frequently admitted to the ICU more than is necessary, the company said.

It said that the solutions that currently determine when it is appropriate to discharge cardiovascular patients "offer little insight as to whether the cardiovascular system is meeting its primary objective of circulating adequate oxygen to meet metabolic needs; the basis of a healthy, functioning body."

"The iNTELOMED technology has the potential to provide clinicians with a straightforward, more objective assessment when trying to evaluate who is an at-risk patient versus a low-risk patient in the ICU," said John Manzetti, PLSG's president/CEO. "The investment by the PLSG will help iNTELOMED develop and test the accuracy of the CVInsight device."

"We are eager to begin a pilot study that will be performed to conduct clinical testing in an ICU setting," said Jan Berkow, CEO of iNTELOMED.

PLSG invests in biosciences companies in Southwestern Pennsylvania.

• Lifeline Biotechnologies (Reno, Nevada) reported completing the exchange of preferred shares for common shares.

Jim Holmes, CEO, said the exchange was completed "as a part of the capital restructuring of the company. We anticipate that the exchange could provide participating shareholders an opportunity to benefit from the impending reverse split of the remaining common shares, which is being considered …"

The company said it is completing development of its First Warning System, designed to assist in the early detection of breast cancer. It says that the underlying technology for the system "holds the possibility of eliminating over 90% of unnecessary breast biopsies performed each year providing a potential savings of up to $2.8 billion annually."

• Neuroptix (Acton, Massachusetts) reported that it has received a $1 million milestone payment under its Alzheimer's Disease diagnostic collaboration with Merck & Co. (Whitehouse, New Jersey).

The collaboration, first disclosed in December, calls for Neuroptix to provide Merck with access to its laser eye scanning technologies, which in preclinical studies has detected Alzheimer's-related amyloid protein aggregates in the lens of the eye. The quantitative technique has the potential for early detection and monitoring of Alzheimer's Disease progression.