A Diagnostics & Imaging Week

Volcano's (Rancho Cordova, California) initial public offering (IPO) of 6.8 million shares of common stock at a price of $8 per share raised about $54.4 million.

The offering from Volcano, which develops heart disease products, was less than the company's previously disclosed range of $10 and $12 per share, which would have valued the IPO between $68 million and $81.6 million.

Volcano granted the underwriters an option to purchase up to an additional 1.02 million shares at the initial public offering price to cover over-allotments. The underwriters exercised that option in full, increasing Volcano's net proceeds from the IPO to $58.2 million.

The stock will trade on the Nasdaq National Market under the symbol VOLC.

JP Morgan Securities and Piper Jaffray & Co. are serving as joint book-running managers for the offering, with Bear, Stearns & Co. and Cowen and Co. serving as co-managers.

Volcano manufactures a broad line of intravascular ultrasound and functional measurement products that enhance the diagnosis and treatment of vascular and structural heart disease.

A Securities and Exchange filing of the Volcano IPO was first made in March.

Volcano manufactures intravascular ultrasound and functional measurement products for the diagnosis and treatment of vascular and structural heart disease, with its target market being hospitals that perform percutaneous interventional procedures. It also has developed key technology and research partnerships with Advanced Cardiovascular Systems, a unit of Guidant (Indianapolis) and GE Healthcare (Waukesha, Wisconsin).

Clinical Data (Newton, Massachusetts) reported that it has entered into definitive agreements with certain institutional and other accredited investors with respect to the private placement of 1,039,783 shares of newly issued common stock, and warrants to purchase 519,889 shares of common stock, for a total purchase price of about $17 million.

"This transaction enhances Clinical Data's capacity to deliver shareholder value," said President and CEO Drew Fromkin. "We believe the additional capital will strengthen our ability to advance our key initiatives: commercializing molecular diagnostics designed to improve patient outcomes; continuing the Phase III clinical development of Vilazodone, the company's novel dual-mechanism antidepressant, while moving to spin off Vilazodone into Precigen Therapeutics; and enhancing our genetic services and analysis business while continuing to position the Vital Diagnostics division as a leader in its space."

The company said that gross proceeds from this financing would be used for general working capital purposes, executing Clinical Data's previously reported restructuring activities, and launching its clozapine-induced agranulocytosis and warfarin response tests. The company also anticipates pursuing new product initiatives through the development and in-licensing of clinically relevant biomarkers in several therapeutic classes.

The company, founded in 1972, is organized under three worldwide divisions segmented by service offerings and varying client constituents: PgxHealth, Cogenics and Vital Diagnostics.

In other financing news, SpectraScience (San Diego) reported that it has completed a private placement of $500,000 in new equity financing. The interim financing involved the sale of about 750,000 restricted common shares in compliance with Regulation D under the Securities Act of 1933. The lead investor is Perkins Capital Management of Minnesota.

"This incremental funding will enable the company to maintain the momentum of a clinical trial to detect pre-cancer in the esophagus," said CEO Jim Hitchin.

"Our multi-patented and proprietary WavStat Optical Biopsysystem will be used by physicians to diagnose tissue and determine if it is normal, pre-cancerous or cancerous within one second," he added.

The WavStat system is currently approved by the FDA for use in detecting cancer in the colon. A new application for detecting pre-cancers in the throat, sometimes called Barrett's esophagus, is being tested in a clinical trial.

The company noted that cancer of the esophagus is more than 90% fatal and may develop as a result of chronic heartburn or GERD. Esophageal cancer is growing five times faster than all other cancers.