A Medical Device Daily

Xoft (Fremont, California), a developer of electronic brachytherapy, a proprietary cancer treatment platform, reported closing a Series D round of financing of $33.2 million in new equity.

Designed to reduce recurrence of breast cancer, Xoft says that its Axxent Electronic Brachytherapy System uses a miniaturized X-ray source that delivers targeted radiation treatment in virtually any clinical setting "under the supervision of a radiation oncologist."

All of Xoft's current investors participated in the D financing: MPM Capital, Sutter Hill Ventures, Maverick Capital, Frazier Healthcare Ventures, Mosaix Ventures, Cutlass Capital, RiverVest Venture Partners, and Frantz Medical Ventures. The round included new investors: Easton Capital, New Science Ventures and Hambrecht & Quist Capital Management.

John Friedman, founder/managing partner of Easton Capital will join the Xoft board.

Michael Klein, Xoft president/CEO, said the new funding "will be used to expand manufacturing operations as well as the sales and marketing functions to fully commercialize this important new tool. Interest in the Electronic Brachytherapy platform from the radiation oncology community has been strong and we are confident that these funds will not only drive adoption of the breast cancer application, but also accelerate development of additional indications for this innovative technology, including potential treatments for gynecological and other cancers."

FDA-cleared for treatment of early-stage breast cancer, the Axxent System is designed to deliver therapy directly to cancer sites with minimal radiation exposure to healthy tissue. By eliminating the need for heavy shielding, it gives radiation oncologists the flexibility to deliver therapy in a broader range of clinical settings.

The system also provides the opportunity to reduce the time required for radiation therapy for early stage breast cancer from seven weeks, for external radiation therapy, down to five days, according to Xoft. It says: "As a result, tens of thousands of patients will have greater access to therapy that is delivered more easily and conveniently. This may accelerate patient choice of breast sparing lumpectomy surgery with adjuvant radiation therapy over the alternative of a full mastectomy.

"We strongly believe Xoft's Electronic Brachytherapy represents a paradigm shift in radiation therapy that is going to have significant impact on the industry," said John Friedman of Easton Capital. "For this reason, we are excited to join a group of such high quality investors committed to providing the necessary resources to fuel market adoption and expansion for this important technology."

Electronic Brachytherapy uses miniaturized X-ray tube technology. Axxent Electronic Brachytherapy System is its first treatment system and is branded as Accelerated Partial Breast Irradiation (APBI) to treat early-stage breast cancer. "This solution provides a therapeutic dose of intracavitary radiation directly to the region at risk without the complex handling and resource logistics necessary when performing brachytherapy using radioactive isotopes."

In other financing activity:

• Amphion Innovations (New York), which calls itself a "builder of companies in life sciences and technology," reported that one of its partner companies, Motif Biosciences, a population genetics company in the Arabian Gulf Region, has raised $1 million in a C-round financing.

Amphion, which owns 42% of Motif, said it has invested $400,000 as part of this round and that Motif is in the process of raising up to $3 million more, concluding this financing "in the coming months."

Motif is focused on discovering genes causing common diseases by using genetic data from the Persian/Arabian Gulf region, where, it says, populations are less diverse and easier to analyze through applied genomics. Motif has leveraged its resources to develop a patent-pending methodology for collecting and analyzing genetic data.

Amphion said its "close involvement" with Motif "underscores [its] commitment to establishing itself in the Gulf region, the world's third fastest growing economy." Earlier this year, Amphion reported a Heads of Agreement with two prominent Kuwaiti families to establish a joint venture focused on the support and development of several Gulf-based life sciences and technology companies.

Richard Morgan, Amphion CEO, said: "Motif has a unique expertise in collecting and analyzing genetic data, which allows for drug companies to apply principles of genomics efficiently as they race to develop new drugs that can treat some of the most challenging and chronic disease conditions."

The company has named Dr. Faisal Al-Refaei to be its Regional Director in the region. Faisal most recently was at the Kuwait Ministry of Health.

Amphion forms and develops life sciences.

• Lifeline Biotechnologies (Reno, Nevada) reported that it is offering a share exchange program to its common stock shareholders. It will exchange its Series B convertible preferred stock, valued at $1 a share, for common shares of stock held by its shareholders as of record date, valued at $.001 a share, a premium to the current market price.

Jim Holmes, president of Lifeline, said, "[W]e are reaffirming our confidence and optimism in the long-term future of the company."

Lifeline develops technologies to assist in the early detection of cancers, and "deal with cutting-edge innovation to assist practicing physicians in the delivery of quality medical care." Its First Warning System, a process for assisting in the early detection of breast cancer, is in development.