A Medical Device Daily

CPI International (Palo Alto, California) reported the pricing of its initial public offering of 7,058,870 shares of its common stock at $18 per share. The company offered 2.9 million shares, while selling stockholders, which are funds controlled by affiliates of The Cypress Group, offered the remaining 4.1 million shares.

The shares began trading Friday, on the Nasdaq under the symbol CPII.

The underwriters have been granted a 30-day option to purchase up to an additional 441,180 shares of common stock from CPI International and an additional 617,651 shares from selling stockholders at the initial public offering price, less the underwriting discount, to cover any over-allotments. The offering is expected to close on or about Wednesday.

CPI said it intends to use the net proceeds from the offering to repay, repurchase or redeem indebtedness and to pay any associated early redemption costs, accrued interest and transaction fees and expenses. CPI International will not receive any net proceeds from the sale of shares by existing stockholders.

UBS Investment Bank and Bear, Stearns & Co. Inc. acted as joint book-running managers of the offering, and Wachovia Securities and Banc of America Securities LLC acted as co-managers.

CPI is the parent company of Communications & Power Industries, a provider of microwave and radio frequency products for critical defense, communications, medical, scientific and other applications. Communications & Power Industries manufactures products used to generate, amplify and transmit high-power/high-frequency microwave and radio frequency signals and/or provide power and control for various applications.

These systems are used to provide power and control for medical diagnostic imaging; generating microwave energy for radiation therapy in the treatment of cancer; and for various industrial and scientific applications; transmission of radar signals for navigation and location; transmission of deception signals for electronic countermeasures; transmission and amplification of voice, data and video signals for broadcasting, Internet and other types of communications;

Endologix (Irvine, California) reported filing a shelf registration statement with the Securities and Exchange Commission a shelf registration statement to sell up to $50 million of common stock.

Endologix said it plans to use the proceeds from any offerings to expand its sales force recruitment and marketing efforts in the U.S., to commercialize a broader family of Powerlink System products and for working capital to support expanded Powerlink sales.

The Powerlink System is an endoluminal stent graft (ELG) for treating abdominal aortic aneurysms (AAA). The patient mortality rate for ruptured AAA is estimated to be about 75%, making it the 13th leading cause of death in the U.S.

In other financing activity:

• Sonus Pharmaceuticals (Bothell, Washington) reported that it has entered into purchase agreements for the sale of about $30.6 million of its common stock in a registered offering. The company will sell about 6.1 million shares of Sonus common stock at $5 per share to what it termed “a select group” of new and current institutional investors, led by Federated Kaufmann Funds.

The transaction is expected to close tomorrow, subject to customary closing conditions.

“We are pleased with the quality of the investors in this financing and their support of our development initiatives,” said Michael A. Martino, president and CEO of Sonus Pharmaceuticals.

“This raise significantly strengthens our balance sheet and provides greater flexibility to simultaneously fund our share of the remaining clinical development of Tocosol Paclitaxel and to expand our efforts to develop additional products to broaden and deepen our oncology pipeline.”

Needham & Company acted as the lead placement agent and Punk, Ziegel & Company, and ThinkEquity Partners LLC acted as co-placement agents for the offering.

Sonus' lead product candidate is Tocosol Paclitaxel, a ready-to-use injectable formulation of paclitaxel. Tocosol Paclitaxel is currently in a Phase 3 pivotal trial for the potential treatment of metastatic breast cancer.

• Alveolus (Charlotte, North Carolina), a developer of non-vascular stenting technologies, reported the closing of a $15 million Series C financing.

The company said that the capital raised will be used to support R&D for the other products in the company's portfolio.

“The conclusion of this round of financing will enable us to bring successfully to market the remainder of our immediate product portfolio as well as allow us to initiate product development on our newest innovative development initiatives,” said Eric Mangiardi, president and CEO of Alveolus.

Alveolus' stenting technology is targeted to treatment of pulmonary or gastrointestinal obstruction.

The financing was led by Ridgeback Capital Management, LLC, and joined by MDS Capital and others from the previous Series A and B rounds of financing.

• Neogen (Lansing, Michigan) has filed a registration statement with the SEC for the offering from time to time of up to 1 million of its common shares.

Neogen develops products and services dedicated to food and animal safety. The company's Food Safety Division markets dehydrated culture media and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens, unique proteins, drug residues, plant diseases and sanitation concerns.

Neogen's Animal Safety Division markets diagnostics, veterinary instruments, veterinary pharmaceuticals, nutritional supplements, disinfectants and rodenticides.