A Medical Device Daily

IntraOp Medical (Sunnyvale, California) has closed a $1.2 million financing to provide a portion of the additional capital it requires to fulfill its backlog commitments and its expected order growth for the year.

“Prospects for FY2007 are extremely strong. We require this financing to fulfill our order backlog and to prepare for the additional orders we expect. During the next four months, we expect to complete the last phase of our financing to allow us to ramp up to multi-unit per month production to meet our projected demand,” Donald Goer, PhD, President/CEO of IntraOp, said.

The company recently reported $5.98 million in sales for the fiscal year ended Sept. 30, with an operating loss of $2.43 million and a net loss of $7.16 million. The fourth quarter had sales of $3.67 million, with break even operations and a net loss of $1.14 million.

IntraOp provides solutions for the treatment of cancer.

Founded in 1993, IntraOp says that its flagship product, the Mobetron, is the first fully portable, self-shielding intraoperative electron radiation therapy device for use in any operating room. According to IntraOp, Mobetron benefits include increased survival rates, better local tumor control, shorter treatment cycles, and fewer side effects. The device has been FDA-approved since 1998.

Before the Mobetron, the company said, most IORT patients were transferred from the operating room, while under anesthesia and with an open wound, to the radiation therapy department to receive their IORT treatment. After the treatment, they were taken back to the operating room for the completion of their surgery.

This method, according to IntraOp, is inefficient for the operating and the radiation departments, increases the time of the procedure and the time the patient must be under anesthesia, and has a higher risk of infection because the patient is taken out of a sterile environment for the IORT treatment.

Because the Mobetron is designed to be relatively small and lightweight and can be used in several operating rooms and even shared between hospitals, the company says it is a less complex, safer and more cost-effective method of treatment.

In other financings news:

• EncounterCare Solutions (ECSL; Palm Beach Gardens, Florida), a company focused on the healthcare technology, telemedicine and home care markets, said it has appointed Capital Partners Group (London) to raise up to $3 million in short-term financing, followed by an additional raise of $10 million in long-term funding.

EncounterCare said that Capital Partners will manage the series of capital raises expected to result in a potential listing on the PLUS Markets (formerly known as Ofex) Exchange in London.

Ron Mills Sr, president/CEO of EncounterCare, said that the funding raised “will enable ECSL to consummate several acquisitions for which ECSL currently has letters of Intent.” He said the acquisitions will enable ECSL to offer a broader range of healthcare products and services that address several substantial target markets, including: the healthcare information technology, telemedicine and the home care. In addition, during 4Q06, ECSL said it experienced “positive developments” regarding potential contracts, distribution agreements, and prospective technology partners, the announcements of which we hope to make in the near future.”

ECSL’s five operating businesses include: a Pharmacy, Building Blocks Pediatric Home Health Services, CyberMedx Medical Systems, Encounter Select, and JMJ Technologies.

BioMed Realty Trust (San Diego, California) reported the pricing of its public offering of 8 million shares of 7.375% Series A Cumulative Redeemable Preferred Stock at $25 a share. The offering is expected to close on or about Jan. 18.

Proceeds from the offering will be roughly $200 million. BioMed said it will use the net proceeds to repay a portion of outstanding indebtedness under its unsecured revolving credit facility.

Wachovia Capital Markets, Morgan Stanley & Co. and Raymond James & Associates are joint-bookrunners for the offering, and KeyBanc Capital Markets, a division of McDonald Investments, Robert W. Baird & Co., Credit Suisse Securities, Friedman, Billings, Ramsey & Co., RBC Dain Rauscher and Stifel, Nicolaus & Company are co-managers.

BioMed has also granted the underwriters a 30-day option to purchase an additional 1.2 million shares to cover over-allotments.