A Medical Device Daily

MedMira (Halifax, Nova Scotia), a rapid diagnostic solutions developer, reported that it has closed on a previously disclosed C$6.5 million equity financing from Morningside group (Medical Device Daily, March 7, 2006).

Morningside acquired 10.83 million equity units at 60 cents per unit, for total net proceeds of $5.6 million in cash after retirement of a US$775,000 promissory note. Each equity unit consists of 1 common share and one half of a common share purchase warrant, for a total of 10.83 million common shares and 5.42 million common share purchase warrants being issued.

Each warrant entitles Morningside to purchase one common share of MedMira at 69 cents per share for a two year period, ending on March 16, 2008.

Following this private placement transaction, Morningside has become an 18.8% shareholder of MedMira.

Morningside said it acquired the securities for investment purposes only and has no current intent of acquiring any further securities of MedMira other than those related to the exercise of warrants.

“This new financing will enable MedMira to capitalize on key growth opportunities and advance key initiatives including the expanding over-the-counter market and co-infection rapid tests,“ said Stephen Sham, chairman and CEO of MedMira.

Zynex Medical Holdings (Littleton, Colorado), a provider of pain management systems and electrotherapy products for medical patients with functional disability, reported that Silicon Valley Bank, the primary operating subsidiary of SVB Financial Group, has increased the company's credit facility by $240,000 to $600,000.

The company said it will use the additional funds for working capital.

“The availability of an additional $240,000 in funding will enable Zynex to further ramp up our sales, marketing and support efforts in Europe and domestically for our NeuroMove stroke recovery system and related products,“ said Zynex President and CEO, Thomas Sandgaard.

The NeuroMove system is designed to increase the functionality of many stroke victims by teaching the healthy parts of the brain to compensate for damaged areas. The system, which is significantly more sensitive than most diagnostic equipment, monitors muscle activity and selects signals from the brain indicating that the patient is attempting to move a certain muscle. It then introduces the actual movement through electrical stimulation. Eventually the connection between the brain and muscle can often be reestablished. The device can also be used to treat spinal cord injuries.

In other financing news:

• Angiotech Pharmaceuticals (Vancouver, British Columbia) said it has priced the previously disclosed offering of $250 million in aggregate principal amount of 7.75% senior subordinated notes due 2014 (MDD, March 6, 2006).

The offering is being made in a private placement, and the closing of the offering is conditioned on the satisfaction of customary conditions, the concurrent closing of a new senior secured credit facility and the consummation of the $785 million all-cash acquisition of American Medical Instruments Holdings (AMI; Lake Forest, Illinois), which is scheduled for completion later in late March (MDD, Feb. 2, 2006).

The net proceeds of the offering will be used to finance in part the company's acquisition of AMI, repay the existing debt of AMI, and pay fees and expenses related to the acquisition and the issuance of the notes.

• Quintiles Transnational (Research Triangle Park, North Carolina) and Pharma Services Intermediate Holding (Durham, North Carolina) reported that, in connection with the previously disclosed (MDD, March 8, 2006) tender offer and consent solicitation for any and all of Quintiles' outstanding $450 million aggregate principal amount 10% senior subordinated notes due 2013 and any and all of Pharma's outstanding $219 million aggregate principal amount at maturity 11.5% senior discount notes due 2014, the requisite consents have been received to approve certain amendments to the indentures under which the respective notes were issued.

The amendments to the indentures will eliminate or make less restrictive most of the restrictive covenants contained in the indentures and amend certain related provisions.

About $446 million principal amount (99.1%) of the outstanding principal amount of the subordinated notes and $219 million principal amount at maturity (100%) of the outstanding principal amount at maturity of the discount notes, have been validly tendered by the consent payment deadline

Quintiles is a provider of pharmaceutical services.

Synthetic Blood enrolls first patient in Phase II

Synthetic Blood International (Costa Mesa, California) reported that the first patient has been enrolled and treated in its eight-patient Phase II proof-of-concept study to evaluate the safety and biological effects of Oxycyte in patients with traumatic brain injury. Oxycyte is Synthetic Blood's perfluorocarbon therapeutic oxygen carrier and blood substitute.

In this open label, Phase II pilot study, Oxycyte is being administered to patients with severe traumatic brain injury and a Glasgow Coma Scale score of 3-9 within 24 hours of the injury's occurrence. The primary purpose of this study will be to demonstrate Oxycyte's ability to increase brain oxygen tension and favorably affect other brain chemistries that impact clinical outcome in patients suffering severe head injury. Additionally, the study will further assess the safety of Oxycyte when given by intravenous infusion.