A Medical Device Daily

Corautus Genetics (Atlanta), a company developing gene therapy products for the treatment of cardiovascular and peripheral vascular disease, reported that it has filed a preliminary prospectus supplement relating to an offering of 6.5 million shares of its common stock.

The company also will grant the underwriters in the offering an option to purchase up to 975,000 additional shares of common stock to cover any over-allotments. All of the shares are being sold by Corautus.

In its filing, the company estimated that the net proceeds from the offering after deducting underwriting discounts and commissions and offering expenses will be about $31.1 million, $35.9 million if the over-allotment option is exercised in full, assuming a public offering price of $5.19 per share.

Corautus said it intends to use the proceeds from the offering for working capital and other general corporate purposes, including funding its clinical trials and manufacturing costs.

Assuming net proceeds of $31.1 million are received from the offering, the company estimated it would have sufficient funds available to support its current and planned operations through 2Q08.

Corautus is developing and testing gene therapy product candidates using the vascular endothelial growth factor-2 (VEGF-2) gene to promote therapeutic angiogenesis in ischemic muscle.

In February 2000, the company's Phase I/II clinical trial for its lead product candidate was placed on clinical hold by the FDA. Following the death of an 18-year old patient enrolled in an unrelated gene therapy study using a viral vector to deliver the genetic material, the FDA undertook extensive reviews of gene therapy clinical trials in the U.S. to evaluate compliance with clinical trial monitoring procedures.

Based on the FDA review and issues identified by the agency regarding the conduct of the company's trial, Corautus was required to cease further patient enrollment and the administration of its lead product candidate in the clinical trial until it addressed those issues and provided data and information to allow the FDA to assess the risks to patients and remove the Phase I/IIa study from clinical hold.

Lazard Capital Markets will be lead manager and sole bookrunner for the offering, while Jefferies & Co. will be co-lead manager.

Imagin Molecular (Oakbrook, Illinois) reported that the company's wholly owned subsidiary, Positron Acquisition, has reached an agreement with Positron (Hous-ton) to convert a convertible promissory note into about 70 million shares of Positron common stock.

The transaction will be effective immediately upon ratification of Positron's increase of its authorized stock. The shares will be restricted and at current prices have a value of about $14 million.

Imagin is focused on business opportunities in positron emission tomography (PET) manufacturing. PET is an advanced diagnostic imaging procedure used by physicians in the detection of certain cancers, coronary disease and neurological disorders, including Alzheimer's disease.

No Comments