Milestones 4292

MILESTONES

MicroChips Inc. (Bedford, MA), a developer of drug delivery and biosensing devices, has received a $13.4-million round of investment funding led by Novartis Venture Fund, and Reinhard Ambros, global head of Novartis Venture Fund, has joined the company's board of directors. Other investors include CSK Venture Capital, Polaris Venture Partners, IDG Ventures, Medtronic, Boston Scientific, Intersouth Partners, and Boston University Community Technology Fund. "This latest round of financing underscores the great market potential for MicroChips' biosensing and drug delivery technology," said John Santini, CEO of MicroChips. "Novartis's leadership in pharmaceutical development complements the medical device investment of Medtronic and Boston Scientific as MicroChips develops solutions to help patients with debilitating diseases. CSK Venture Capital's experience as a pioneer of life science investments in Japan completes a global team of top investors."

Device component manufacturer Greatbatch Inc. has completed its acquisition of biomedical device company Biomec Inc. (Cleveland) for $11.4 million in cash and future additional considerations. Greatbatch plans to maintain Biomec's operations in Cleveland, which include a 25,000-sq-ft facility providing engineering, prototype manufacturing, and machining capabilities.

Scivanta Medical Corp. (Spring Lake, NJ) reports that it has received a final payment of $2.55 million from Syntho Pharmaceuticals Inc. (Farmingdale, NY) and its principal owner, Muhammed Malik. The payment is related to a $3.1-million settlement agreement entered into by the companies and other related parties in late 2006. "Receiving the final payment from the Syntho Group ends many years of litigation surrounding the distribution of the hormone replacement therapy drug, Syntest," said David LaVance, president and CEO of Scivanta Medical. "The company will use the proceeds from the settlement for working capital purposes and to fund the development of the Hickey cardiac monitoring system, a minimally invasive two-balloon esophageal catheter system used to monitor cardiac performance. The funds will also enable us to further implement our strategic plan to identify new technologies and products for possible acquisition."

Teleflex Inc. (Limerick, PA)—whose Teleflex Medical division produces disposable medical products, surgical instruments, and medical devices—has acquired the assets of HDJ Company, Inc. and its wholly owned subsidiary, Specialized Medical Devices Inc. (SMD; Lancaster, PA). SMD is a provider of engineering and manufacturing services to medical device manufacturers. The terms of the agreement were not disclosed.

Ivivi Technologies Inc. (Northvale, NJ), a developer of noninvasive electrotherapeutic technologies, announced that its exclusive Canadian distributor has obtained approval from Health Canada for the distribution of Ivivi's Roma³ pulsed electromagnetic field therapy device in Canada. "We believe the market for wound care products in Canada, like the rest of the world, will continue to grow, driven by an aging population as well as the rise in the incidence of diabetes," said Andre' DiMino, vice chairman and cochief executive officer of Ivivi.

Capsule endoscopy system manufacturer Given Imaging Ltd. (Yoqneam, Israel) and Fujinon Corp. (Saitama City, Japan) have signed a strategic agreement to build closer collaboration between the companies in research and development, component sourcing, marketing, and product distribution worldwide, except in Japan. The agreement also grants Fujinon nonexclusive rights to distribute Given Imaging's capital equipment and small-bowel products in certain countries. "Together with Fujinon, we will work to develop the next generation of less-invasive gastrointestinal products, leveraging on the combined resources and technologies of both companies to provide more-effective treatment options for patients with gastrointestinal disorders," said Homi Shamir, president and CEO of Given Imaging.

CoreValve (Irvine, CA), a medical device company developing technologies for percutaneous heart valve replacement, has received $33 million in funding in its third institutional round of financing. Maverick Capital led the round and was joined by existing investors Apax Partners, HealthCap, and Sofinnova Partners. "We have made significant progress in the development of our core technologies as well as in our clinical programs," said Jacques Séguin, MD, PhD, chairman, CEO, and founder of CoreValve. "This additional capital enables us to continue the execution of our strategy of leadership in less-invasive heart valve delivery systems and the expansion of worldwide clinical trials."

Axial Biotech (Salt Lake City) has raised $15.3 million in series B financing. The funding round was led by new investor Johnson & Johnson Development Corp., with participation by existing investors vSpring Capital and Ohio Biotech Group LLC. As part of the financing, Roger J. Guidi, vice president of venture investments for Johnson & Johnson Development Corp., will join Axial Biotech's board of directors. The funds raised in the financing will be used to accelerate Axial Biotech's product development efforts and to prepare for the launch of its scoliosis genetic test late next year.

GlucoLight Corp. (Bethlehem, PA), a development-stage company focused on blood glucose–monitoring in the acute-care environment, has closed a $2-million first tranche of C round financing. The second tranche is expected to close late in the second quarter of 2007. The financing was led by Matignon Technologies (Paris). Ben Franklin Technology Partners of Northeastern Pennsylvania, a state-funded economic development organization, also participated in the round, along with other individual investors. The funding from the financing will enable GlucoLight to complete the development of its optical continuous glucose monitor. It will also help fund clinical studies leading up to an expected pivotal trial in 2008. "We estimate the size of our near-term addressable market to be at least $500 million," says Ray Krauss, CEO of GlucoLight. "In the coming months, our efforts will focus on additional product refinements to our device for the acute care environment and for eventual FDA evaluation. Eventually we will miniaturize our glucose monitoring technology and develop a consumer product that will help both type I and type II diabetics better manage their glucose levels, and help decrease the complications associated with this worldwide illness."

The molecular imaging division of Siemens Medical Solutions (Malvern, PA) has announced an agreement with Wyeth Pharmaceuticals, a division of Wyeth (Madison, NJ), to use Siemens's new research imaging agent in Wyeth's clinical studies of new therapies in development for Alzheimer's disease. Siemens's new Alzheimer's imaging agent recently received FDA clearance to begin phase I clinical trials. "Molecular imaging is already revolutionizing the detection and diagnosis of diseases like Alzheimer's, and now it is becoming an indispensable component in the development of exciting new drug therapies," said Michael Reitermann, president of molecular imaging for Siemens Medical Solutions.

Merit Medical Systems Inc. (South Jordan, UT), a manufacturer and marketer of proprietary disposable devices used primarily in cardiology and radiology procedures, has entered into an exclusive distribution agreement with Milamy Partners LLC (Yarmouth, ME) for the KanguruWeb abdominal retraction system. The agreement grants Merit exclusive worldwide marketing, distribution, and sales rights to the KanguruWeb system in interventional and diagnostic cardiology and radiology labs and imaging centers.