A Diagnostics & Imaging Week

Vital Images (Minneapolis) reported that the underwriters of its recently completed public offering have exercised their option to buy an additional 354,003 shares of the company common stock to cover over-allotments.

Vital Images granted the underwriters a 30-day over-allotment option to buy up to 450,000 shares of common stock at $31 a share, less the underwriting discount. Net proceeds will be about $10.3 million. In total, including the over-allotment shares, the company will have sold 3,354,003 shares at $31 a share, resulting in net proceeds of roughly $98 million.

Vital Images said it intends to use the proceeds for expanding sales and marketing, customer service and training efforts internationally and investing in product development resources. It also intends to use the proceeds for the acquisition of or investment in businesses, products and technologies complementary to its products, to enhance its market coverage or technical capabilities, or offer growth opportunities.

Piper Jaffray acted as book-running manager for the offering. Wachovia Capital Markets, Jefferies & Company and Thomas Weisel Partners acted as co-managers.

Vital Images provides advanced visualization and image analysis solutions to give radiologists, cardiologists, oncologists and other medical specialists time-saving productivity and communications tools.

In other financing activity:

MedCath (Charlotte, North Carolina) reported that the underwriters of its common stock offering exercised their over-allotment option to purchase another 400,000 shares of MedCath common stock from certain selling stockholders at $25 per share. The company did not receive any proceeds from the sale of shares by the selling stockholders.

The company originally reported completing its public offering of 4.5 million shares of common stock, 1.7 million of which were sold by the company, 2.8 million sold by stockholders, at $25 per share last month. The selling stockholders had granted underwriters the right to purchase up to another 675,000 shares at the public offering price.

The company said it plans to use the proceeds from its portion of the offering — roughly $42.5 million before expenses — to pay off part of its senior notes due in 2012, as well as for working capital and other corporate purposes.

Citigroup Global Markets, Wachovia Capital Markets, and Deutsche Bank Securities, acted as joint book-running managers for the underwritten offering. In addition, Banc of America Securities, Raymond James & Associates, and Stephens acted as co-managers for the offering.

MedCath is a healthcare provider focused primarily on the diagnosis and treatment of cardiovascular disease.

Abingworth Management, a life sciences investment group, reported that it has led a $50 million Series A private debt and equity financing in Magellan Biosciences (Chelmsford, Massachusetts). The company develops rapid point-of-care analyzers and automated systems for hospital labs and near-patient testing worldwide.

Abingworth led the Series A financing with a $14 million investment. Other new investors included Hambrecht & Quist Capital Management and KBL Healthcare Ventures. Existing investors, Ampersand Ventures, Partners Capital, Nexus Medical Partners II SICAR and Boston Community Venture Fund also participated.

As part of the financing, Magellan has acquired TREK Diagnostic Systems (Cleveland), a maker of automated systems and consumables for microbiology testing, serving the clinical, pharmaceutical and veterinary laboratory markets.

Nymox Pharmaceutical (Hasbrouck Heights, New Jersey) reported securing $13 million in private equity financing.

The company said the funds will be used for general corporate purposes.

The placement of common stock is with institutional investors who have participated in previous financings for the company, and is priced at a 3% discount to the market price. There are no warrants with the placement and no restrictions on other corporate financing.

Nymox's CEO, Paul Averback, said, "This financing allows Nymox to continue to advance our products in development to market while maintaining our very low burn rate, with minimal dilution to our shareholders. The company has no long term debt."

Nymox is a biotech company engaged in the R&D of therapeutics and diagnostics, with an emphasis on products targeting the aging population. Currently Nymox has three products on the market and a pipeline of diagnostic and drug products. The company markets NicAlert and TobacAlert tests for measuring tobacco product exposure, and AlzheimAlert, a test to aid in the diagnosis of Alzheimer's disease.

FEI (Hillsboro, Oregon) said it has filed a registration statement on Form S-3 with the Securities and Exchange Commission relating to an offering of up to 8,406,007 shares of its common stock.

The shares are being offered by Philips Business Electronics International a wholly owned subsidiary of Koninklijke Philips Electronics (Amsterdam, the Netherlands).

FEI said it will not receive any of the proceeds of the offering.

Merrill Lynch & Co. will be the sole book-running manager for the offering. Credit Suisse Securities will be co-lead manager. Needham & Co and Thomas Weisel Partners are serving as co- managers.

FEI supplies products and systems that enable research, development, and manufacturing of nanoscale features. The company offers focused ion beam (FIB) equipment, scanning electron microscopes (SEMs), transmission electron microscopes, and DualBeam systems, which combine a FIB and SEM on a single platform, as well as computer aided design navigation and yield management software.

Dade Behring Holdings (Deerfield, Illinois) said its board has approved an expansion of the company's stock repurchase plan by authorizing the company to buy an incremental five million shares of common stock.

This authorization follows two prior authorizations of 5 million shares each, the first in April, 2005 and the second in February, 2006.

During the last 17 months, the company has repurchased 9.7 million shares, or about 11% of the diluted number of shares outstanding, of which 2.7 million shares were purchased in October and November of this year.

As of Nov. 30, there were 5.3 million shares available for repurchase under the plan, including the newly authorized shares. The company anticipates both a year-end and ongoing net debt level of about $500 million.