A Medical Device Daily

Cyberkinetics Neurotechnology Systems (Foxborough, Massachusetts) reported that it has entered agreements to sell $10 million of new shares of common stock, to private investors, and warrants to purchase additional shares of common stock. The company will issue about 8.33 million shares of common stock at $1.20 a share, together with warrants to purchase up to about 4.167 million additional shares at $1.40 a share.

Investors include Medica Venture Partners, an Israeli healthcare venture fund, and Oxford Bioscience Partners (Boston).

The company said it will use the proceeds to support its planned 2007 launch of the Cyberkinetics’ Andara OFS (Oscillating Field Stimulator) Device, for other research and clinical programs and for general corporate purposes.

C.E. Unterberg, Towbin acted as lead placement agent for the transaction.

Cyberkinetics is developing neural stimulation, sensing and processing technology for those with severe paralysis resulting from spinal cord injuries, neurological disorders and other conditions of the nervous system. Its OFS product is an investigative device designed to stimulate regeneration of the neural tissue surrounding the spinal cord and to restore sensation and motor function; the BrainGate System, an investigative device designed to provide communication and control of a computer, assistive devices, and, ultimately, limb movement (Medical Device Daily, Oct. 17, 2006); and the NeuroPort System, which is cleared to market in the U.S., a neural monitor designed for acute inpatient applications and labeled for temporary recording and monitoring of brain electrical activity.

In other financing news:

• Roche Diagnostics (Pleasanton, California) reported that its royalty dispute with Ambry Genetics (Alisa Viejo, California) involving Roche’s patent portfolio for polymerase chain reaction (PCR) and related technology has been settled.

Ambry will pay Roche Diagnostics past royalties due in the field of Human in vitro diagnostics, and Roche Diagnostics has agreed to dismiss the arbitration proceedings it had initiated. The estimated amount of these royalties was not provided.

“Ambry acted in a completely responsible way after being advised of its obligations under our license agreement,” said Melinda Griffith, senior VP and general counsel at Roche Molecular Diagnostics, a business area of Roche Diagnostics. “Roche Diagnostics will continue to take all necessary action to safeguard our intellectual property.”

Roche Diagnostics has a licensing program in which it makes available technology improvement patents for the company’s PCR technology in such areas as real-time nucleic acid quantitation, reverse transcription and advanced polymerase enzymes.

• Abbott (Abbott Park, Illinois) reported that its board has authorized the repurchase of up to $2.5 billion of the corporation’s common stock as market conditions warrant.

Abbott is a broad healthcare company that manufactures nutritionals, devices and diagnostics.