A Medical Device Daily

DexCom (San Diego) announced an initial public offering (IPO) pricing of 4.7 million shares of common stock at $12 a share, aiming to raise somewhat more than $56 million.

The company filed for the IPO with the Securities and Exchange Commission in February.

DexCom is selling all of the shares in the offering, and it has granted the underwriters of the offering an option to purchase up to an additional 705,000 shares at the initial public offering price to cover any over-allotments.

DexCom is developing an implantable system for continuous monitoring of blood glucose as an alternative to blood draws. The DexCom Continuous Glucose Monitoring System includes an implantable sensor that continuously measures glucose levels in subcutaneous tissue and transmits that data wirelessly to an external receiver at specified intervals.

The company has said that, “with a push of a button, the receiver displays the patient’s current glucose value, as well as one-hour, three-hour and nine-hour trends.” The receiver also includes an alert that signals out-of-parameter glucose levels.

DexCom has reported “encouraging human clinical data” from the first generation of its system, and it has made presentations of these results and meetings focused on diabetes management.

It said the IPO funds would be used for clinical trials and other research, for building a commercial infrastructure and for working capital.

The common stock will trade on the Nasdaq National Market under the symbol DXCM.

Piper Jaffray & Co. is the sole book-running manager for the offering, with SG Cowen & Co. as co-lead manager and William Blair & Co. and First Albany Capital as co-managers.

PolyMedica (Woburn, Massachusetts) reported entering into a $150 million, five-year revolving credit facility with a syndicate of banks led by Bank of America and Wachovia. Additional members of the syndicate include Citizens Bank, Key Bank, SunTrust Bank, CIBC, Deutsche Bank and UBS.

PolyMedica said the facility would be used by the company to fund acquisitions and capital expenditures and for other general corporate purposes.

“This new facility, together with our strong cash position, debt-free balance sheet and reliable cash flow, gives us substantial resources to pursue our strategic goals,” said Keith Jones, PolyMedica’s CFO.

PolyMedica is a provider of healthcare products and services to those suffering from chronic diseases. With over 650,000 active patients, the company bills itself as the nation’s largest provider of blood glucose testing supplies and services to people with diabetes. In addition, PolyMedica provides a full range of prescription medications through its mail-order pharmacy and a nationwide network of more than 40,000 retail pharmacies that honor its drug discount card.

The company’s Liberty Healthcare division focuses on patients who suffer from diabetes and respiratory ailments.

In other financing news:

Xenomics (New York), a developer of DNA technologies, reported closing a private placement of $2.95 million, with the proceeds to fund expansion of its program to create, it said, “a new class of accurate and risk-free non-invasive diagnostic tests for a range of applications, including prenatal screening and tests for HIV and tuberculosis.”

“This funding will help us achieve the next round of milestones in the commercialization of our proprietary Transrenal DNA testing platform for medical and life science applications,” said Dr. Randy White, CEO of Xenomics. “We are developing . . . tests that have the potential to improve healthcare for millions of patients worldwide who are living with AIDS and other diseases, for pregnant women who need to learn about the health of their unborn children, and for a range of other applications.”

Xenomics says that its scientists were the first to discover the existence of Tr-DNA that has passed through the kidneys and is excreted in the patient’s urine. It is using this science to design a platform “that serves as a gateway to the creation of a new generation of non-invasive genetic tests for a range of critical health care applications,” it said.

Because Xenomics’ Tr-DNA test uses urine specimens instead of blood, it is safer and easier to collect. It recently filed a patent on its techniques to detect and monitor transrenal HIV and tuberculosis DNA, potentially enabling significant advances in medical care for AIDS and TB patients.

Xenomics also has reported continued progress in the development of new prenatal testing solutions that can use its risk-free, non-invasive testing technology to detect Down syndrome and other fetal abnormalities early in pregnancies.

The company paid $236,400 and issued 121,231 warrants to purchase common stock to Axiom Capital Management, which acted as the selling agent. The warrants are immediately exercisable at $2.15 a share.

• Cyberonics (Houston) said that it will hold a special shareholder meeting May 19 to approve the its 2005 stock plan, providing up to 1 million shares for the issuance of restricted stock or options to purchase common stock to qualified employees and board members at fair market value on the date of grant or issuance.

“Cyberonics is today more confident than ever that final FDA approval of the treatment-resistant depression indication will facilitate a U.S. launch at the American Psychiatric Association meeting in late May,” said Skip Cummins, CEO and chairman of the board. “Final FDA approval will enable Cyberonics to properly scale our organization and fully implement our plan to become the market leader in neuromodulation, the next frontier for medical devices.”

He added: “Cyberonics must hire over 200 new, and retain over 400 existing, key personnel to realize the enormous potential of our intellectual property, regulatory and market franchises in epilepsy, depression and other chronic, treatment-resistant disorders that prove to be treatable with our patented [FNS] therapy. The hiring, retention and motivation of key personnel requires competitive compensation packages, most importantly equity ownership that is issued at fair market value and is earned over years of service.”

The Amacore Group (Tampa, Florida) reported that in a private deal providing for the placement of up to $1 million, it received an initial investment in excess of the minimum amount required under a purchase agreement on March 28. The executing agent for this transaction was Divine Capital (New York), a securities firm, and was introduced by Crescent Fund.

The Amacore Group owns and operates the nation’s largest discount vision network, Eye Care International, with provider locations nationwide. Amacore also is the parent company of LBI Brokerage, distributor of the Eye Care International Vision Plan and the Transamerica Worksite program.