Medical Device Daily
Endologix (Irvine, California), manufacturer of the Powerlink System for the minimally invasive treatment of abdominal aortic aneurysms (AAA), reported that it has completed a private placement of 4.15 shares of common stock to existing and new accredited investors at $4 a share, resulting in net proceeds of about $15.5 million.
The transaction is expected to be completed, Endo-logix said, “within the next few days” following satisfaction of customary closing conditions.
The proceeds will be used to support “the next phase,” the company said, of the ongoing commercial launch of the Powerlink System.
Paul McCormick, Endologix president and CEO, said that the company’s “focused launch” of Powerlink “indicates that hospitals are receptive to adopting new technologies . . . as demonstrated by our ability to establish a number of commercial accounts since the beginning of this year.” He said that the financing would support its addition of resources “to expand our sales and marketing program and to hire additional sales representatives to capitalize on these market opportunities as we move toward full commercialization,”
The company has raised nearly $40 million in private placements over the past three years. Last year, it sold 3.2 million shares to investors at $5.10 a share, for net proceeds of about $15.3 million (Medical Device Daily, March 11, 2004).
And in 2003 it completed a private placement of 4 million shares at $2.25 a share, raising about $8.46 million (MDD, July 22, 2003).
The Powerlink System is an endoluminal stent graft for treating AAA, a weakening of the wall of the aorta, resulting in a balloon-like enlargement susceptible to rupture. AAA is estimated to be the 13th-leading cause of death in the U.S., Endologix said. It received FDA approval for the Powerlink in late 2004 (MDD, Nov. 2, 2004).
It recently stumbled a bit in the Asian market, being turned down in Japan for approval of its PowerWeb endoluminal stent graft in May (MDD, May 23, 2005).
In other financing news, Triad Hospitals (Plano, Texas) reported closing of its previously reported stock offering of nearly 4.29 shares at $53.62 a share, for gross proceeds of about $230 million, net of about $217.5 million. The amounts represent an offering of nearly 3.79 million shares, plus exercise by the underwriters of the over-allotment option of another 559,492 shares.
Merrill Lynch, Pierce, Fenner & Smith, Citigroup Global Markets and Banc of America Securities were joint book-running managers for the offering.
Triad, through its affiliates, owns and operates 52 hospitals and nine ambulatory surgery centers in 15 states. In addition, through its QHR unit, Triad provides hospital management, consulting and advisory services to more than 180 independent community hospitals and health systems throughout the U.S.