A Diagnostics & Imaging Week
Biophan Technologies (West Henrietta, New York) has reported in an SEC Form 8-K/A filing further details of its technology licensing and equity agreements with Boston Scientific (Natick, Massachusetts), initially reported earlier this month.
The technology license agreement has a number of provisions, including the granting of various rights to commercially implement a number of Biophan's patented solutions to make implantable medical devices and surgical tools safe and/or image-compatible in MRI systems. The agreement grants Boston Scientific various exclusive and non-exclusive licenses, for certain products, to a number of Biophan's proprietary technologies, plus sublicensing rights for the sale of commercial products that are based on the licensed technologies.
"We believe these agreements with Boston Scientific represent the next significant step toward the creation of medical devices that are MRI-safe and image-compatible," said Biophan CEO Michael Weiner. "Through use of our proprietary technology, leading medical device manufacturers will have the ability to produce and market medical devices that offer critical advantages of MRI safety and MRI image compatibility. These agreements are an important milestone along that path."
Boston Scientific is to pay Biophan an up-front license fee of $750,000, plus annual license maintenance fees, and also will make milestone payments for the launch of commercial products based on the licensed technologies. Biophan will receive royalties on the sale of products that employ the licensed technologies.
As reported, Boston Scientific also is acquiring $5 million of Biophan common stock, priced at a 10% premium over the average of the closing price for the 30-day period preceding the closing.
PolyMedica (Woburn, Massachusetts) reported on its modified "Dutch auction" tender offer to purchase up to $150 million of its outstanding common stock, the offer expiring at midnight, EDT, on July 8.
Based on a preliminary count, about 5,059,617 shares of common stock were properly tendered and not withdrawn at prices at or below $37.50 a share, PolyMedica said. In addition, about 1,880,344 shares were tendered at various price points within the range of $34.75 to $37.50 through notice of guaranteed delivery. The company expects to purchase 4 million shares of its common stock at a price of $37.50 a share.
The actual number of shares purchased, the final purchase price and the final proration factor will be announced following completion of verification, and the company will then commence payment for the shares of common stock accepted for purchase and return all other shares tendered and not accepted for purchase.
PolyMedica is a provider of healthcare products and services to those suffering from chronic diseases. With more than 700,000 active patients, the company bills itself as the nation's largest provider of blood glucose testing supplies and related services to those with diabetes.
Nydic Open MRI of America (Montvale, New Jersey), a provider of MRI services, has received a $5 million revolving line of credit and a $13.7 million term loan from Bridge Healthcare Finance (Chicago), in conjunction with its Bridge Opportunity Finance division.
Lawrence Buchwalter, president and CEO of Nydic, said, "Diagnostic imaging is a capital-intensive business requiring significant amounts to fund operations. It is also a highly competitive business. This financing will allow us to continue to capitalize on the growing demand for diagnostic imaging services and remain competitive."
Randy Abrahams, president and CEO of Bridge Healthcare, said, "Our expertise in diagnostic imaging and appetite for restructuring made us an excellent match and partner for the completion of this transaction."
Nydic Open MRI and affiliates is one of the largest companies in the U.S. providing open MRI services, with 28 imaging facilities in 14 states.
Medical Services International (MSI; Edmonton, Alberta), maker of the VScan HIV test kit and other diagnostic products, reported signing an agreement with a U.S.-based investment fund, the Nutmeg Group, to provide it a minimum of $450,000 and up to $1 million. MSI said the agreement will give it the flexibility to attain its financial goals, fulfill existing sales commitments and expand its marketing and distribution.
With this capital infusion, the company said its Shanghai facility would immediately implement its marketing plan in China and Southeast Asia with the expectation of increasing orders and production "significantly."
"Our investment and ongoing commitment is prompted by our extreme optimism about the outlook for Medical Services and its capacity to ramp up its operation to seize opportunities," said Randall Goulding, managing director of the Nutmeg Group. "We plan to play a vital role in Medical Services International's very promising future. In fact, the specific reason for this cash infusion is to focus on creating new business opportunities and joint ventures."
The Nutmeg Group has joint-ventured with the company to facilitate Father George Clement's endeavor to make available MSI's VScan HIV test kits to the U.S. Virgin Islands in cooperation with local officials.
The VScan rapid test kit is a single-use, disposable, easy-to-use test for the screening of HIV 1 & 2, hepatitis B & C, tuberculosis, Dengue fever, West Nile virus, syphilis, malaria and prostate cancer.