A Medical Device Daily

SenoRx (Aliso Viejo, California), a manufacturer of biopsy systems and tissue markers used in the diagnosis and treatment of breast cancer, last week priced its 5.5 million share initial public offering at $8 per share, significantly below its stated goal of $11 to $13 a share that it reported in its Securities and Exchange Commission filing two weeks ago (Medical Device Daily, March 28, 2007).

SenoRx also granted the underwriters an option to purchase up to an additional 825,000 shares at the initial public offering price to cover any over-allotments, if any.

If all the shares are exercised, the company could raise up to $50.6 million in gross proceeds, far below the $68.6 million it expected to net at the $12 a share mid-point price in its filing.

The company's primary diagnostic product, EnCor, is a vacuum-assisted breast biopsy probe system with which a doctor may collect tissue samples and biopsies through a transparent tissue collection chamber. The system allows the doctor to examine the quality of the specimen mid-probe, rather than performing numerous biopsies. The system can also be used in conjunction with other imaging equipment such as MRIs and ultrasounds.

The company received FDA 510(k) clearance for the EnCor system in 2004. Over the subsequent period ending in October 2005, the company said it began selling the product on a limited basis while it focused on enhancing certain elements of the product to optimize performance. It made a full commercial launch of the system in November 2005.

SenoRx said it expects to apply for 510(k) clearance for another product, its Radiation Balloon, in 2H07.

It also is developing breast surgery and breast reconstruction devices, its Single Step, Shape Select and GED, for which it expects to enter limited launch phases in late 2008.

The common stock will trade on the NASDAQ under the symbol SENO.

Banc of America Securities and Citigroup Global Markets are the joint bookrunning managers for the offering. Cowen and Co. and Canaccord Adams are co-managers.

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