A Diagnostics & Imaging Week

Monogram Biosciences (South San Francisco, California) said it will sell $30 million of 0% convertible senior unsecured notes, due 2026, to a qualified institutional buyer. Gross proceeds will be $22.5 million. Closing of the transaction is expected to occur later today.

The principal amount of the notes will be convertible into shares of Monogram’s common stock at $2.52 a share.

Proceeds of the convertible financing, together with more than $30 million in cash and investments held as of the end of 2006, are expected be used to support commercialization of HIV and oncology assays and for general corporate purposes.

Monogram must file a registration statement registering the notes and the shares of common stock underlying the notes within 60 days of closing. Monogram then will have the option to cause all or any portion of the notes to convert into common stock at such time as the closing price of Monogram’s common stock is greater than $3.15 for 20 out of 30 consecutive trading days and the satisfaction of certain other conditions.

Subject to certain conditions, the notes may be redeemed by Monogram at any time following Dec. 31, 2009, at their accreted value. The holders of the notes may cause Monogram to repurchase the notes on each of Dec. 31, 2011, Dec. 31, 2016 and Dec. 31, 2021 at the principal amount thereof. The notes will be unsecured and subordinated to Monogram’s outstanding senior debt, including the $25 million 3% senior secured convertible note, due May 19, 2010, issued to Pfizer in May 2006 and the company’s line of credit with Merrill Lynch.

Monogram has developed HIV tests designed to help make the complexities of antiretroviral therapy easier to manage. Its phenotype and genotype resistance tests, phenotype+genotype combination test, and viral fitness test help healthcare providers choose the drugs that will provide the greatest benefit and to help get the most out of antiretroviral therapy.

• Laboratory Corporation of America (LabCorp; Burlington, North Carolina) reported that its zero coupon subordinated liquid yield option notes due 2021, and zero coupon convertible subordinated notes (zero coupon notes), due 2021, may be converted as follows: LYONs are convertible into common stock of LabCorp at the conversion rate of 13.4108 per $1,000 principal amount at maturity of the LYONs, subject to the terms of the LYONs and the Indenture, dated as of Sept. 11, 2001, between LabCorp and The Bank of New York; and the zero coupon notes are convertible into cash and common stock of LabCorp, subject to the terms of the zero coupon notes and the Indenture, dated as of Oct. 24, 2006 between LabCorp, the trustee and the conversion agent.

In order to exercise the option to convert all or a portion of the LYONs or zero coupon notes, holders must surrender their LYONs or zero coupon notes at any time during the calendar quarter through the close of business at 5 p.m., EST, April 2.