A Medical Device Daily

InSite Vision (Alameda, California), an ophthalmic therapeutics, diagnostics and drug-delivery company, said it has entered into definitive agreements for a $9 million private financing of common stock and warrants for common stock.

The terms of the agreements provide for the sale of about 16.4 million newly issued shares of common stock at 55 cents per share, and the issuance of warrants to purchase about 4.9 million shares of common stock at an exercise price of $0.6325 per share.

The warrants have a term of five years, but will not be exercisable or transferable for six months following the closing of the financing.

Paramount BioCapital (New York) is serving as the placement agent for the financing. The private placement is to be made to a small group of independent institutional investors and accredited individual investors.

The company said proceeds from the financing would be used for continued development and completion of its Phase III pivotal trials with AzaSite for the treatment of bacterial conjunctivitis.

Pending successful completion of and satisfactory results from current ongoing Phase III clinical trials and the subsequent filing of a new drug application and approval from the FDA, the company expects to commercially launch AzaSite in the U.S. in 2006.

InSite is focused on ocular infections, glaucoma and retinal diseases.

Immunicon (Huntingdon Valley, Pennsylvania) reported that it filed today a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC) for the sale and issuance of up to $75 million of its common stock, preferred stock, debt securities, warrants, depositary shares, stock purchase contracts and stock purchase units.

The terms of any offering will be established at the time of the offering.

Immunicon is developing cell- and molecular-based human diagnostic and life science research products, with a focus on cancer disease management. The company has developed platform technologies for selection and analysis of rare cells in blood, such as circulating tumor cells and circulating endothelial cells that are important in many diseases and biological processes.

In other financing activity:

• BioniCare Medical Technologies (Sparks, Maryland) reported closing a Series C convertible preferred stock financing of $15 million with a syndicate of U.S. and Japanese investors. The company said it is planning a follow-on closing with additional investors in early June, which could bring in another $5 million.

Dr. Thomas Zizic, CEO of BioniCare, said, “BioniCare is now solidly positioned to become the market leader in high value-added, non-invasive therapeutic devices for arthritis.”

BioniCare’s lead product, the BIO-1000 System – which works via low-amplitude electrical stimulation – is FDA-cleared to treat osteoarthritis of the knee and rheumatoid arthritis of the hand; the company reports more than 4,500 patients treated.

In one four-year study at Johns Hopkins University (Baltimore), 62% of total knee replacement candidates were able to defer surgery vs.7% in a control group. Its benefits include targeted relief of pain and associated symptoms; improvement over anti-inflammatory medications; high patient acceptability; and ease of use.

The investor group was led by New Science Ventures (New York) and included Allen & Co. and Nippon Sigmax. New Science Ventures invests in emerging life sciences and technology companies worldwide. Thomas Lavin, CFO of New Science, has joined the board of directors.

Roberts Mitani (New York) acted as investment banker and placement agent.

• Meridian Bioscience (Cincinnati) has called for redemption on June 3 of $2.5 million in principal amount of its outstanding 7% convertible subordinated debentures due Sept. 1, 2006, at par plus accrued interest. On or before close of business June 2, holders of the debentures being called may convert them into shares of Meridian common stock at a price of $16.09 a share. On May 6, the closing price of the common stock was $17.43 per share.

Selected holders who do not convert their debentures into common stock of Meridian will have their debentures redeemed on June 3 at a price of $1,000 per $1,000 face amount, plus accrued and unpaid interest up to that date. After completion of this redemption, there will be about $2.3 million principal amount of 7% convertible debentures outstanding, the company said.

Meridian makes diagnostic kits, purified reagents and biopharmaceutical enabling technologies.

• Amicas (Boston), a developer of radiology and medical image and information management solutions, said its board has authorized repurchase of up to $15 million of the company’s common stock, funded using working capital.

As of March 31, the company had cash and cash equivalents of about $88.6 million and about 44.9 million shares of common stock outstanding.