A Medical Device Daily

Q-Med (Stockholm, Sweden) and Medy-Tox (Seoul, South Korea), a South Korean biopharmaceutical company, reported entering into a collaborative agreement to develop botulinum toxin-based biopharmaceuticals.

Q-Med said this collaboration will allow it to develop and commercialize new generations of botulinum toxin products for both esthetic and therapeutic indications. Medy-Tox will support Q-Med with its extensive technology and know-how in the development of botulinum toxin and Q-Med will support Medy-Tox in the establishment of its new facilities.

Q-Med will pay Medy-Tox milestones up to $8 million provided that specific targets have been met by Medy-Tox. In addition, Q-Med will support Medy-Tox with an additional conditioned $3 million to expand its facilities in Ochang-myeon in South Korea. The agreement also entitles Medy-Tox to a future royalty on botulinum toxin based products developed by Q-Med which are based on Medy-Tox active pharmaceutical ingredients.

Q-Med grants Medy-Tox the right of first refusal regarding distribution in India, Thailand, Singapore and South Korea of newly developed botulinum toxin products.

Q-Med develops implants for esthetic and medical use. All products are based on the company's patented technology for the production of stabilized non-animal hyaluronic acid, NASHA.

DaVita (El Segundo, California) reported that it intends to offer $400 million aggregate principal amount of senior notes due in 2013.

The senior notes are part of the same series of debt securities as the $500 million aggregate principal amount of 6-5/8% senior notes that were issued in March 2005.

The company said it intends to use the net proceeds of the offering to repay a portion of outstanding amounts under the term loan portion of its senior secured credit facilities.

The company also reported that it is seeking an amendment and restatement to its existing senior secured credit facilities primarily to reduce the margin over LIBOR that the company pays as interest under the existing term loan B. The outstanding balances on the senior secured term loan A and senior secured term loan B are about $279 million and $2.11 billion, respectively.

DaVita provides dialysis services in the U.S. for patients suffering from chronic kidney failure.

In other financings news, NovaMed (Chicago) reported that it has entered into an amendment to its credit facility that increases the size of the facility from $80 million to $125 million and extends the term to Feb. 5, 2010.

The amended credit facility also has an option allowing NovaMed to elect to increase the size of the facility to $150 million under certain conditions.

National City Bank remains as agent, with LaSalle Bank, Associated Bank, Charter One Bank, Bank of Montreal, the Northern Trust Company and JPMorgan Chase Bank, as the other participating banks. NovaMed intends to use the expanded credit facility for the acquisition and development of ambulatory surgery centers as well as for general corporate purposes.

"NovaMed completed a record number of ambulatory surgery center acquisitions in 2006 and we continue to have a strong acquisition pipeline," said Thomas Hall, president/CEO. "Increasing the size of our credit facility at this time will allow us to continue to execute our growth strategy."

NovaMed acquires, develops and operates ambulatory surgery centers in partnership with physicians. NovaMed currently has ownership interests in 37 centers located in 18 states.