A Medical Device Daily

Helicos BioSciences (Cambridge, Massachusetts), the developer of a system for genetic analysis, has lowered the expected price of its initial public offering for a second time to $9 a share, according to a regulatory filing Thursday with the Securities and Exchange Commission.

On Wednesday, Helicos reduced the expected price range of its offering of 5.4 million shares to $10 to $11 per share, from its previous anticipated range of $13 to $15 per share.

The company's IPO is set to price this week.

Helicos now expects to raise about $43.2 million from the offering, or about $50 million if the underwriters fully exercise their option to buy an additional 810,000 shares to cover over-allotments.

According to Helicos, some existing shareholders may purchase up to $12 million of common stock at the public offering price, or up to 1.3 million shares. Previously, the company said the shareholders may purchase at least $5 million of the stock at the offering price.

The company said it plans to use the proceeds for working capital and other general corporate purposes, including R&D, recruitment of sales, marketing and service personnel, marketing initiatives and startup manufacturing expenses.

Helicos said it plans to launch its first commercial product for the analysis of genetic material, the HeliScope system, in 4Q07.

The company will have 20.5 million shares outstanding followoing the offering.

UBS Securities is serving as the lead underwriter for the offering. JP Morgan Securities, Leerink Swann and Pacific Growth Equities are also helping to sell shares to investors.

The company plans to list its shares on the NASDAQ Global Market under the symbol HLCS.

Helicos serves the research, clinical diagnostic, and drug discovery markets, providing customers with the ability to compare thousands of samples. The HeliScope system, which can be integrated into existing laboratories, consists of a computer-controlled instrument and related supplies and reagents.

AtriCure (West Chester, Ohio) reported entering into definitive agreements with certain institutional investors to raise $16.5 million from the placement of nearly 1.79 million shares of its common stock.

Of the total private placement, 1,683,060 shares were sold at $9.15 a share, and 106,589 shares were sold to an affiliate at $10.32 a share, the closing bid price on Wednesday. Net proceeds to the company will be about $15.2 million. The transaction is subject to customary closing conditions.

The company said the net proceeds from the offering will be used for working capital and general corporate purposes, including R&D activities, potential acquisitions or other initiatives.

Piper Jaffray acted as exclusive placement agent for this offering.

AtriCure makes surgical devices that create lesions in soft and cardiac tissues.

The FDA has cleared the AtriCure Isolator bipolar ablation system, including the new Isolator Synergy ablation clamps, for the ablation of soft tissues in general and non-cardiac related surgical procedures, but to date has not cleared or approved the system for cardiac use or for the treatment of atrial fibrillation.

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