A Medical Device Daily

Volcano (Rancho Cordova, California) reported that underwriters have exercised their over-allotment option in full in connection with the company's initial public offering (IPO) of 6.8 million shares (Medical Device Daily, June 16, 2006). The company granted the underwriters an option to purchase up to an additional 1.02 million shares to cover over-allotments.

With sale of the over-allotments, Volcano's net proceeds from the IPO increase from about $54.4 million to $58.2 million.

A Securities and Exchange filing for the Volcano IPO was first made in March (MDD, March 27, 2006).

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).

In other financing activity: Accel-KKR (Menlo Park, California), a technology-focused private equity investment firm, reported that it has made an investment in IntrinsiQ (Boston), a developer of medical oncology care software and a provider of automated longitudinal data on trends in cancer drug usage, thereby acquiring a majority stake in the company. The amount of the investment was not disclosed.

Through its IntrinsiQ Research and IntrinsiQ Financial businesses, IntrinsiQ, founded in 1996, provides oncology market data and business analytics to the pharmaceutical/biotech industries, as well as financial institutions. Major clients include Bristol-Myers Squibb (Princeton, New Jersey), Genentech (South San Francisco, California), Pfizer (New York) and Sanofi-Aventis (Le Plessis Robinson, France).

The company also provides proprietary medical oncology care software, sold under its IntelliDose brand, which manages the clinical care practice of oncology from the assignment of therapy, to the calculation of chemotherapy doses, to the documentation of care. The company reports physician clients in 36 states, maintaining records for more than 13,000 patients and 115,000 oncology-related drug administrations per month.

Brent Clough, IntrinsiQ CEO, said, “Accel-KKR's track record as the preferred partner of management teams of closely-held businesses in the technology sector made the firm the logical choice for us when we determined that we had reached an appropriate point in our development to seek a financial and strategic partner.”

Tom Barnds, managing director of Accel-KKR, said the investment is its first transaction in healthcare technology “and bears all of the hallmarks of an outstanding platform on which to build an even larger and more profitable business.”

Barnds, Ben Bisconti, Rob Palumbo and Jason Michael Klein from Accel-KKR, and Brent Clough and Howard Silverman, MD, company founder, chief technology officer, will join the board of IntrinsiQ.

Accel-KKR invests primarily in technology businesses with $15 million to $150 million in revenue.