A Medical Device Daily

BioSphere Medical (Rockland, Massachusetts) reported that it has entered into an agreement with selected investors to buy 2.075 million shares of the company's common stock at $7 each, for net proceeds of about $13.4 million.

BioSphere's core technologies, patented bio-engineered polymers and manufacturing methods, are used to produce miniature spherical beads for a variety of medical applications. The company's principal focus is the treatment of symptomatic uterine fibroids using a procedure called uterine fibroid embolization (UFE).

The company says its strategy is twofold. First, it is seeking to grow the embolotherapy business worldwide, specifically the UFE procedure, by increasing awareness of availability of this procedure. Second, it is seeking to maintain its current technology leadership by introducing new products and product improvements, both through internally developed and externally acquired technologies that improve and broaden the use of embolo-therapy.

BioSphere has received clearance in many countries, including the U.S., Canada, Australia and the European Community.

Syncro Medical Innovations (Canfield, Ohio), developer of the Gabriel Post Pyloric Feeding Tube, a magnetically guided enteral feeding device, reported closing a first round financing totaling $2.2 million. The round was led by Norwich Ventures (Cambridge, Massachusetts).

The company said the funds would enable it to ramp up sales and market efforts of its device product.

“The Gabriel device [enables] physicians to overcome one of their biggest problems in critical care medicine, quickly placing feeding tubes in the post-pyloric location,“ said Aaron Sandoski, managing director of Norwich Ventures. “The early enthusiasm for the device that we're seeing at some leading institutions around the country, such as Brooke Army Medical Center in Texas, is very encouraging.“

Gary Wakeford, president of Syncro, said, “Clearly, there is a positive view in the critical care community for the Gabriel Post Pyloric Feeding Tube.“

With the Gabriel device, duodenal placement of the feeding tube can be performed quickly at the patient's bedside without the need for fluoroscopy, endoscopy or medications.

Syncro was founded in 1998 by physician inventor Sabry Gabriel, MD.

Norwich Ventures is a seed- and early-stage venture capital firm specializing in the field of medical devices. The Norwich team is made up of former device executives and entrepreneurs based out of offices in Massachusetts and Pennsylvania

In other financing activity:

OnCure Medical (Newport Beach, California), a provider of outpatient radiation therapy services, reported that it has amended its senior secured credit facility with Merrill Lynch Capital and added a subordinated credit facility with MCG Capital and Ares Capital for a total of $125 million. The proceeds were used to refinance OnCure's debt, acquire the outstanding stock of Coastal Radiation Oncology Medical Group (Coastal; Santa Maria, California), and provide capital for additional acquisitions and working capital.

“OnCure now has the foundation for a commitment for capital with these relationships to execute its strategy for growth and for additional potential acquisitions,“ said Richard Zehner, OnCure CEO.

Coastal owns eight centers in California in the cities of Salinas, San Luis Obispo, Santa Maria, Templeton, Ventura, Thousand Oaks, Westlake Village and Simi Valley.

Dr. Shyam Paryani, chairman of the OnCure board, said, “This brings together two leading radiation oncology companies with similar clinical standards of excellence.“

“With the addition of these centers to our existing network, OnCure is now the largest freestanding provider of radiation therapy services in the state of California, and it ensures our continued commitment to expand our regional networks of radiation centers in association with quality doctors,“ said Jeffrey Goffman, president and founder of OnCure.

OnCure owns, operates and manages 28 radiation centers, and other mobile HDR and positron emission tomography/computed tomography units, all in California and Florida. Its centers provide treatment areas and equipment for radiation therapy and diagnostic radiology, including intensity-modulated radiation therapy, computed tomography and positron emission tomography.

OnCure's shareholders include Crossbow Ventures, Halpern Denny & Co. and MedEquity Capital.

Ophthalmic Imaging Systems (OIS; Sacramento, California), a provider of ophthalmic digital imaging systems, reported that MediVision Medical Imaging (Yokneam, Israel), its major shareholder, sold 1 million shares of OIS's common stock to Wasatch Advisors (Milwaukee) for $1.80 a share. As a result, the company's public float increases to around 6.7 million shares.

Gil Allon, CEO of OIS, said, “This is MediVision's fifth transaction of this nature over the past year and a half, totaling 2.76 million OIS shares sold to institutional investors. These transactions have increased the company's liquidity without diluting existing shareholders, and have resulted in a growing awareness of OIS within the investment community.“

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