A Medical Device Daily
IsoRay Medical, a wholly owned subsidiary of IsoRay (both Richland, Washington), said it has met significant milestones in February, including raising more than $7 million in private funding, the signing of a major technology licensing agreement, and the continued expansion of medical centers offering the company's Cesium-131 radioisotope as a cancer treatment option.
IsoRay says it is the world's only manufacturer and distributor of the Cesium-131 radioisotope used in the treatment of prostate cancer and other malignant diseases.
Chairman and CEO Roger Girard reported that IsoRay Medical closed a major round of private funding on Jan. 30, raising $6 million. The company opened a subsequent private placement, at a higher price, to accommodate investors who had wanted to participate in the $6 million placement. Under the new placement, opened Feb. 1, the company has raised in excess of $1.3 million.
In another move that could significantly reduce manufacturing and production costs, the company said it has signed an exclusive North American technology licensing agreement for Cesium-131 with Belgium-based IBt, providing IsoRay Medical with access to IBt's Ink Jet production process and its polymer seed technology for use in cancer therapy using Cesium-131 in brachytherapy procedures.
“We also believe polymer seeds have important clinical advantages, including more precise seed placement because of enhanced imaging characteristics, major improvement in stranding capabilities, improved dosimetry and the polymer is simply more user friendly,“ said Girard. “This is an important step as we lay the groundwork for expanding isotope therapy and new technology initiatives.“
Girard said IsoRay Medical would immediately apply for FDA approval for the use of the two technologies used separately or in tandem.
IsoRay Medical manufactures Cesium-131 seeds using titanium seed technology. The rights granted under the agreement allow IsoRay to use Ibt's polymer seed technology and Ink Jet process combined with IsoRay's Cesium-131 technology exclusively throughout North America.
The Cesium-131 isotope is used in brachytherapy treatment for prostate cancer, the second-leading cause of cancer deaths among men in the U.S. Protocols are scheduled to begin in 1Q06 for use of the isotope in both the lung and the pancreas.
Other forms of delivery devices for the isotope also are being considered, which may create a higher demand for the isotope in the future, the company said.
Allscripts Healthcare Solutions (Chicago) reported that it intends to offer 7.3 million shares of common stock.
The company said it intends to use all of the net proceeds from the offering to finance its proposed $272 million acquisition of A4 Health Systems (Cary, North Carolina), first disclosed last month (Medical Device Daily, Jan. 20, 2006).
The company said that if the acquisition is not consummated, the proceeds will be used for general corporate purposes.
The offering will be led by Lehman Brothers and UBS Investment Bank as joint book-running managers. Jefferies Broadview, William Blair & Co., Piper Jaffray, and Goldman, Sachs & Co. will be co-managers for the offering.
Allscripts will grant the underwriters an option to purchase up to an additional approximately 1.1 million shares from Allscripts if the underwriters sell more than 7.3 million shares of common stock in the offering.
Allscripts is a provider of clinical software, connectivity and information solutions that physicians use to improve healthcare.
In other financing news, Fonar (Melville, New York) reported that its chairman, president and founder, Raymond Damadian, MD, purchased 100,000 shares of company stock in the open market on Feb. 13. This brings his total ownership to 2,588,274 shares of common stock.
Damadian has not sold a share in more than a decade, the company noted.
In addition to Damadian, Robert Janoff purchased 10,000 shares of Fonar stock in the open market on Feb. 10. Janoff is a non-executive and independent member of Fonar's board, and the purchases were made pursuant to the company's corporate governance guidelines for insider stock purchases, it said.
Fonar, which was incorporated in 1978, introduced the world's first commercial MRI system in 1980 and went public in 1981.