A Diagnostics & Imaging Week

Xenomics (New York), developer of medical DNA technologies, reported closing a private placement of $2.77 million. The company said that the proceeds will support its efforts to develop diagnostics for a range of diseases and genetic conditions, and to fund preparations toward regulatory approval and commercialization.

Xenomics calls the new class of non-invasive diagnostics it is developing "groundbreaking," based on its Transrenal-DNA (Tr-DNA) technology platform.

Dr. Randy White, CEO of Xenomics, said, "We believe that our proprietary Transrenal-DNA diagnostic platform technology will provide a new, higher level of healthcare industry standards for the improved detection of HIV, tuberculosis, malaria, Down syndrome and many other conditions."

The financing follows two previous rounds gathered in by Xenomics this year. In April, the company closed the second tranche of a two-tranche financing that raised about $6 million for R&D efforts through 2006.

White said that with these financings "were sufficient to carry Xenomics' R&D operations through to the end of next year," and that the latest round "enables us to accelerate our efforts to develop Tr-DNA diagnostic tests for an increasingly broad range of applications."

Xenomics' non-invasive Tr-DNA technology uses simple, easily obtained urine samples to diagnose disease and genetic health conditions. The company's Tr-DNA technology involves the analysis of fragments of DNA that have moved from the blood stream through the kidneys, where they accumulate in urine.

GeneThera (Wheat Ridge, Colorado) reported signing its first two contracts with Xpention Genetics (Conifer, California), serving to transition it from development-stage to a revenue-generating enterprise. The contracts call for GeneThera to provide research services to Xpention to develop a cancer detection test in animals and then humans.

The first contract, for one year at $20,000 a month, calls for GeneThera to develop a cancer detection test for animals. The second, beginning in August for one year at $10,000 per month, is for extending the test to humans. The company said that a contract with a third company will begin in September "at comparable monthly revenues."

Dr. Tony Milici, GeneThera CEO, said that its R&D service used by Xpention "is a business unit ... that should provide sustainable revenues and the organic growth our business plan outlines.

"Additionally, with the announcement last week of our collaboration with Beckman-Coulter [Fullerton, California], we are thrilled about furthering the commercial possibilities of our Ante-Mortem test for several animal diseases," said Milici.

Xpention is a biotech company developing immunological and molecular tests for cancer detection in animals and humans as well as therapeutic vaccines and other treatment.

GeneThera is a molecular biotech providing genetic diagnostics for the veterinary and agricultural industries with future plans, it said, "to include the healthcare industry." The company's diagnostic solution is based on a genetic expression assay, a protocol designed to function on an automated Fluorogenic PCR platform.

PolyMedica (Woburn, Massachusetts) reported the final results of its modified "Dutch auction" tender offer to purchase up to $150 million of its outstanding common stock. The offer expired at midnight, EDT, on July 8.

Based on the final count by the depositary for the tender offer, somewhat more than 6.9 million shares were properly tendered and not withdrawn at prices at or below $37.50 a share, and the company accepted for purchase and will pay for 4 million shares at $37.50 a share, for a total cost of $150 million.

The shares accepted for purchase represent about 14.2% of the company's 28,254,431 shares issued and outstanding as of July 8. After completion of the offer, about 24,254,431 shares of PolyMedica common stock will be issued and outstanding.

PolyMedica is a provider of products and services to patients suffering from chronic diseases, and it bills itself as the nation's largest provider of blood glucose testing supplies and related services.

Aurora Imaging Technology (North Andover, Massachusetts) reported the closing of a credit facility with Bank of America. The amount of financing was not disclosed.

The funding will support a commitment, the company said, to expanding its breast MRI practice in the Boston area as well as for working capital to increase manufacturing and marketing capacity worldwide. It said the funds are necessary to meet the "growing demand" for its breast MRI systems.

According to the company, the Aurora 1.5T Dedicated Breast MRI system is the only fully integrated MRI system designed specifically and only to image the breast and optimized for breast interventional procedures such as MR-guided biopsy.

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