A Medical Device Daily
Conor Medsystems (Menlo Park, California) reported that the underwriters of its recent initial public offering (IPO) of common stock (Medical Device Daily, Dec. 15, 2004) have exercised in full their over-allotment option to purchase an additional 900,000 shares at a price of $13 per share, before discounts and commissions.
Of these, 642,000 shares were issued and sold by the company, raising gross proceeds of more than $8.3 million. This adds to the original IPO amount of $78 million in gross proceeds expected.
A total of 258,000 shares were sold by a selling stockholder. Conor did not receive any proceeds from the sale of shares by the selling stockholder.
Citigroup Global Markets was bookrunning manager of the IPO. Citigroup Global Markets, CIBC World Markets, SG Cowen & Co. and A.G. Edwards & Sons represented the underwriters.
Conor describes itself as being focused on using stents for improved drug delivery. Rather than retrofitting a bare-metal stent with a drug coating, Conor says that its stent design is specifically designed for the drug-delivery process. Its design features hundreds of small holes, each acting as a reservoir into which drug-polymer compositions can be loaded.
This past September, Conor reported strong positive preliminary results for its COSTAR cobalt chromium stent in a 130-patient trial, the data unveiled at the 16th annual Transcatheter Cardiovascular Therapeutics meeting in Washington.
In other financing news:
• ArborMed (Orange, California), a provider of healthcare ASP and patient accounting services, reported receiving a $5 million acquisition term loan facility from Bridge Healthcare Finance (Chicago).
Charles Morf, president and CEO of ArborMed, said the new financing “enables us to continue enhancing our technology and realize efficiencies that translate into more comprehensive services for our clients.“
ArborMed's services include billing, collections, provider enrollment, information systems and HIPAA compliance.
• Ionic Fusion (Longmont, California), a provider of deposition technology to enhance surfaces, reported raising $1.7 million from private investors in South Florida and the Midwest in a second round of financing.
The company said that proceeds from the private placement would be used for working capital for staffing and expansion. Ionic, incorporated in 2001, also has launched a subsidiary, called Nexxion (MDD, Jan. 10, 2005) to license medical applications of its ionic plasma deposition technology. It is testing silver oxide processes for implantable medical devices.
Last year, the company reported a first-round financing of $1.3 million.
• American Medical Systems Holdings (AMSH; Minneapolis) reported that its board approved a 2-for-1 split of the company's common stock in the form of a 100% stock dividend. The stock split is subject to shareholder approval of an increase in the number of authorized shares of common stock from 75 million to 200 million.
AMSH said it would hold a special meeting of stockholders March 3 to approve the increase. If approved, the increase will give all stockholders of record on March 14 one additional share for each share held.
Douglas Kohrs, chairman of AMSH, said that the stock split “evidences our success during the past five years in transforming AMS from essentially a two-product company to a leader in providing an array of solutions for the pelvic health needs of men and women.“
AMSH also reported preliminary record sales of $60 million for 4Q04, a 27% increase over sales of $47.2 million in the year-earlier quarter. The company said it anticipates full-year earnings in line with the previous guidance of 99 cents to $1.01 a share.
AMSH is a supplier of medical devices and procedures to cure erectile dysfunction, benign prostatic hyperplasia, incontinence and other pelvic disorders in both men and women. The company reports its products used to treat more than 120,000 patients in 54 countries during the past year.
• Medtronic (Minneapolis) reported extending its pending exchange offer for $1,973,146,000 aggregate principal amount of its 1.25% contingent convertible debentures. The expiration date for the exchange offer has been extended from 12 midnight EST on Jan. 12, to 5 p.m. EST on Jan. 21, unless further extended. Medtronic said it extended the exchange offer to allow more time for bondholders to tender their old debentures for the new debentures. As of Jan. 7, about $235,141,000 in aggregate principal amount of the old debentures, or 11.9% of all outstanding old debentures, had been tendered into the exchange offer.
Medtronic is offering to exchange $1,000 principal amount of 1.25% contingent convertible debentures, Series B, due 2021, for each $1,000 principal amount of the old debentures tendered on or prior to the expiration date. An aggregate of up to $1,973,146,000 principal amount of new debentures will be exchanged for up to a like amount of old debentures.
• Beverly Enterprises (Fort Smith, Arkansas) reported an offer to exchange up to $215 million in aggregate principal amount of its 7-7/8% senior subordinated notes, due 2014, for its outstanding unregistered 7-7/8% senior subordinated notes, due 2014. The exchange offer will expire at 5 p.m. EST on Feb. 11.
Beverly Enterprises and its subsidiaries operate 351 skilled nursing facilities, as well as 18 assisted living centers and 52 hospice and home health centers.