A Medical Device Daily
Xoft (Fremont, California), a company developing electronic brachytherapy for cancer treatment, has closed a commercialization financings round of $30 million.
The company said the investment will allow it to complete clinical validation studies on the Axxent Electronic Brachytherapy system and launch it in the breast cancer therapeutics market.
The Axxent system uses disposable micro-miniature X-ray radiation sources to deliver treatment. Designed to deliver electronically generated ionizing radiation directly to tumor beds, this localized approach minimizes exposure of the patient’s healthy tissue to toxic radiation, the company said.
A unique advantage is that it also minimizes radiation exposure to treatment staff, the company said. With Xoft’s electronic brachytherapy technology, users can control energy level and total dose, allowing more flexibility than isotope-based systems – but in a non-shielded or lightly shielded clinical environment. This means that radiation treatment centers will have much more flexibility in installing the equipment in a greater number of facilities and in scheduling patients for therapy.
Xoft also said the investment provides the opportunity to accelerate development of additional indications for this technology, including potential treatments for gynecological, lung, and other cancers.
All of Xoft’s current investors participated, including MPM Capital, Sutter Hill Ventures, Frazier Healthcare Ventures, Cutlass Capital, Frantz Medical Ventures and Mosaix Ventures. The round also included two new investors, Maverick Capital and RiverVest Venture Partners.
dj Orthopedics (San Diego), which specializes in rehabilitation and regeneration products for the non-operative orthopedic and spine markets, said it has completed an amendment to its credit agreement that it said lowers its interest rate and provides greater flexibility for strategic and financial purposes.
The company’s former credit agreement included a $100 million term loan, which had outstanding borrowings of about $94 million at the end of 1Q05, and an undrawn $30 million revolving line of credit.
The new agreement reduces the term loan to $50 million and increases the revolving line of credit to $75 million, of which about $44 million will be initially drawn.
Pricing under the new credit agreement includes a leverage-based pricing grid that ranges from LIBOR plus 1.25% to LIBOR plus 2.00%. At the company’s current leverage ratio, its initial rate of interest is LIBOR plus 1.50%, which is 75 basis points lower than the previous agreement.
The new agreement also reduces the commitment fees paid by the company on its unused revolving line of credit. Also, many of the covenants and restrictions in the previous agreement were modified to provide the company with enhanced flexibility for acquisitions and other uses of cash, it said.
Lenders participating in the amended and restated agreement include Wachovia Capital Markets, as sole book runner, sole lead arranger and administrative agent, Bank of the West and Wells Fargo Bank as syndication agents and Bank of America and Union Bank of California as documentation agents. General Electric Capital rounds out the lender group.