A Medical Device Daily

Nanogen (San Diego), a developer of advanced diagnostic products, reported that it has received a commitment for up to $25 million in common stock equity financing from Azimuth Opportunity. Subject to the terms of an agreement with Azimuth, over the next 18 months Nanogen may sell registered shares of its common stock to Azimuth at a small discount from market price.

Nanogen's technologies provide researchers, clinicians and physicians with methods and tools to predict and diagnose disease.

The company's products include real-time PCR reagents, the NanoChip electronic microarray platform and a line of rapid, point-of-care diagnostic tests.

Qiagen (Venlo, the Netherlands) reported that the initial purchasers of $270 million of senior convertible notes, due 2026 exercised the option to acquire another $30 million aggregate principal amount of the notes. Sale of the initial $270 million in notes was reported yesterday (Medical Device Daily, May 10, 2006).

The notes are being sold in minimum denominations of $100,000 to institutional investors outside the U.S. and issued by a wholly owned subsidiary of Qiagen.

Qiagen said it will use the financing to “optimize” the structure of its balance sheet, to finance future acquisitions and for general corporate purposes. The settlement date of the notes is expected on or about May 16.

Qiagen develops consumable products for nucleic acid separation, purification and handling, nucleic acid amplification, automated instrumentation, synthetic nucleic acid products and related services.

In other financing news:

• Source Medical Solutions (Birmingham, Alabama), a provider of outpatient information management solutions, said it has secured financing of $16 million through the placement of Series E preferred stock, led by ABS Capital Partners.

The company said that the investment will be used to provide capital for expansion purposes and to retire existing debt obligations.

John Stobo, a general partner at ABS Capital Partners, and Mark Anderson, a principal at ABS Capital Partners, will join Source Medical's board of directors.

Scott Stone, executive vice president and CFO of Source Medical, said, “ABS Capital has a proven track record in the healthcare IT sector, backing many of the industry's leaders over the past decade. We believe that this investment, coupled with their experience in high growth companies, will be valuable to us as we continue to serve our markets.”

Source Medical's software is designed to support the core requirements of ASCs and rehabilitative therapy centers. It also offers the free standing diagnostic imaging center market an application service provider (ASP)-based Radiology Information System that interfaces with picture archiving and communication systems.

Source Medical provides outpatient information solutions and services for ambulatory surgery centers, rehabilitation clinics and diagnostic imaging centers nationwide. With an established track record and more than 3,300 customers.

ABS Capital Partners focuses on companies in the healthcare, technology, business services and media & communications sectors.

Emisphere (Tarrytown, New York) reported entering into agreements to sell 4 million shares of common stock at $8.26 per share, the closing bid price on May 9, 2006, in accordance with Emisphere's previously filed shelf registration statement.

Emisphere's strategy is to develop oral forms of injectable drugs, either alone or with corporate partners, by applying its proprietary eligen technology to those drugs or licensing its eligen technology to partners who typically apply it directly to their marketed drugs.

Physiognomy Interface Technologies (Nashville, Tennessee) reported that its former president, Don Tolman, has retired 18 million shares of outstanding common stock into the company's treasury, leaving 17 million shares currently outstanding.

Tracey Jones, president of Physiognomy Interface, said, “We feel that retiring these shares is a prudent step in building our company through sound financial management. These shares could potentially assist us in raising capital or seeking out acquisitions in the future.”

Physiognomy Interface is a creation and product development company specializing in all aspects of the science of physiognomy.