A Medical Device Daily
NightHawk Radiology Holdings (Coeur D’Alene, Idaho) reported that certain stockholders have agreed to sell 5.5 million shares of NightHawk common stock, par value $0.001 a share, for $18.50 a share. NightHawk will not receive any proceeds from the offering.
The underwriters in the offering have an over-allotment option to purchase another 825,000 shares of common stock from certain selling stockholders.
Morgan Stanley & Co. is acting as the sole book-running manager for the offering. Co-managers for the offering are Bank of America Securities, Cowen & Company, Piper Jaffray & Co., and Montgomery & Co.
NightHawk is a provider of radiology services to radiology groups across the U.S., using workflow technology to make radiological interpretations from reading facilities in Sydney, Australia and Zurich, Switzerland.
In other financing activity:
• MedCath (Charlotte, North Carolina) reported the offering of 6 million shares of its common stock.
MedCath will offer 1.7 million shares of its common stock, and Kohlberg Kravis Roberts and Co. and Welsh, Carson, Anderson & Stowe and their affiliates intend to offer 4.3 million shares of MedCath’s common stock.
MedCath said that the net proceeds of the shares that it sells will be used to repurchase a portion of its outstanding 9.875% senior notes, due July 15, 2012, and for working capital and other corporate purposes.
Citigroup Global Markets, Wachovia Capital Markets and Deutsche Bank Securities are acting as joint book-running managers for the underwritten offering. Banc of America Securities, Raymond James & Associates and Stephens are acting as co-managers.
MedCath owns interests in and operates 11 hospitals with a total of 667 licensed beds, in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. MedCath also manages the cardiovascular program at various hospitals operated by other parties and provides cardiovascular care in diagnostic and therapeutic facilities in various states.
• Arrowhead Research (Pasadena, California) reported that its subsidiary, Insert Therapeutics , has completed a $10 million private placement with a group of accredited investors, including a $5 million follow-on investment by Arrowhead.
The private placement offered units at $1 per unit, each unit consisting of a share of Series C-2 Preferred Stock and 40% warrant coverage to purchase shares of Series D Preferred Stock at a price of $1.25 a share. The warrants are callable by Insert after July 1, 2007. Arrowhead owns 64.5% of the 53 million shares of outstanding common and preferred stock of Insert.
Bruce Stewart, chairman of Arrowhead, said, “We were pleased to be the lead investor in this financing. Over the last two years, Insert has successfully transformed its technology from laboratory science to a therapeutics company addressing the estimated $40 billion cancer therapeutics market.”
John Petrovich, president of Insert, said that with the new capital it will be able to push forward two initiatives: “the clinical work on IT-101, its lead anti-cancer drug candidate now in Phase I at the City of Hope, and the further development of additional therapeutic candidates in the pipeline.”
Arrowhead is a publicly-traded nanotechnology company developing technologies in the areas of life sciences, electronics and energy. Arrowhead has four subsidiaries commercializing nanotech products. Insert Therapeutics is using its nano-engineered, polymeric delivery system, Cyclosert, to develop drug-delivery-enhanced small-molecule therapeutics and nucleic acids. Cyclosert uses cyclodextrins as building blocks to create a new class of biocompatible materials — linear cyclodextrin — containing polymers that are non-toxic and non-immunogenic at therapeutic doses.