A Medical Device Daily

SurModics (Eden Prairie, Minnesota), a provider of surface modification and drug delivery technologies, reported that it has invested $1 million in ThermopeutiX (San Diego), an early stage company developing catheter-based systems to treat vascular and neurovascular diseases, including stroke.

In addition to the investment, SurModics said it has licensed its hydrophilic and hemocompatible coating technologies to ThermopeutiX for use with its devices.

ThermopeutiX, it said, was co-founded by Ron Solar, PhD, “who played key roles in the start-up of a number of successful medical device companies.” It listed these as Advanced Cardiovascular Systems (now part of Guidant), SciMed Life Systems (now part of Boston Scientific), Versaflex Delivery Systems (now part of Medtronic), Occam International and, most recently, X Technologies (now part of Guidant).

Solar, president and CEO of ThermopeutiX, said, “I beli-eve SurModics coatings are the gold standard in the industry today, and the development capabilities and spirit of collaboration of their technical staff are unparalleled.”

SurModics provides technologies in the areas of biocompatibility, site-specific drug delivery, biological cell encapsulation and diagnostics, with its revenue generated largely by royalties on sales generated through its corporate relationships.

In other financing activity:

Henry Schein (Melville, New York), a major distributor of healthcare products and services in North America and Europe, reported a new $300 million credit facility with a $100 million expansion feature. The new facility, expiring May 2010, replaces the company’s current revolving credit facility, which matures May 2006.

The company said it would use the facility for general corporate purposes and “potentially” for acquisitions.

Steven Paladino, executive vice president and CFO of Henry Schein, said that the new funding “reflects the strong credit and success of our company, including average annual compound EBITDA growth over the last five years in excess of 16%. The participants of the syndicate will also provide us with a strong commercial banking structure to support our growing worldwide needs.”

The facility’s lead arranger and sole bookrunner was JP Morgan Securities; the syndication agent was Citibank.

Henry Schein operates in four business groups, dental, medical, international and technology, with 2004 sales of $4.1 billion. The company also offers practice management software, such as Dentrix and Easy Dental; AVImark for veterinary clinics; and ArubA, an electronic catalog and ordering system.

Thermo Electron (Waltham, Massachusetts) said it has entered into an agreement to sell $250 million of its 5% senior notes, due 2015, with the offering set to close May 27, subject to customary conditions.

Thermo said it would use the notes sale proceeds and cash on hand to repay $250 million of a $570 million 364-day credit facility entered into in connection with the acquisition of the Kendro Laboratory Products division of SPX (Charlotte, North Carolina) earlier this month (Medical Device Daily, May 11, 2005).

Thermo’s Life and Laboratory Sciences segment provides analytical instruments, scientific equipment, services and software solutions for life science, drug discovery, clinical, environmental and industrial laboratories. Its Measurement and Control segment provides analytical instruments used in a variety of manufacturing processes and in-the-field applications, including those associated with safety and homeland security.

SeraCare Life Sciences (Oceanside, California) reported an offering of 3.5 million of its common stock at $12.25 a share: 3,024,000 shares offered by the company, 476,000 shares offered by certain shareholders. The underwriters have a 30-day option to purchase another 525,000 shares: up to 453,600 shares from the company, up to 71,400 shares from the selling shareholders to cover any over-allotments.

CIBC World Markets is serving as sole book-running manager, with Thomas Weisel Partners and William Blair & Co. as co-managers.

HealthSouth (Birmingham, Alabama) reported the launch of a $150 million senior unsecured credit facility. It said it will use the proceeds to partially refinance its $245 million 6.875% senior notes, due June 15, thus allowing it to reduce overall debt.

JP Morgan Securities and Citigroup Global Markets are joint lead arrangers and joint bookrunners for syndication of the new facility.

HealthSouth is a large provider of outpatient surgery, diagnostic imaging and rehabilitative healthcare services.

GeneOhm Sciences (San Diego), a developer of molecular diagnostics, said that it closed a follow-on Series C funding with Wasatch Advisors, which, it said, “focuses on small-cap companies with business models that enable sustained growth and margins and makes a select few private company investments with an eye toward further investment potential after the company completes an initial public offering.”

The amount of the financing was not disclosed.