http://money.cnn.com/news/newsfeeds/articles/djf500/200902261058DOWJONESDJONLINE000959_FORTUNE5.htm
Medtronic Freezing Pay, Eying Layoffs Amid Econ Pressure
February 26, 2009: 10:58 AM ET
Medical-devices giant Medtronic Inc. (MDT) plans to freeze its workers' base salary and trim compensation for its executive team in an effort to control costs while it faces economic and market pressures.
The Minneapolis-based company is also considering layoffs, although no specific decisions about how many employees could be cut, or from which areas, have been made, spokesman Steve Cragle said Thursday. Reductions would start in the 2010 fiscal year that begins May 1.
Chief Executive William A. Hawkins "discussed the need for some restructuring or downsizing of the workforce" during a meeting with workers earlier this week, Cragle said. Medtronic has about 39,000 workers overall.
The company also discussed internal moves designed to control costs, such as the salary freeze that will start in the new fiscal year and plans for a 5% executive pay cut.
The company pegged the moves to the turbulent global economic environment, which is expected to pressure certain parts of its business. Medtronic has also dealt with tough competition and eroding market share in some of its key businesses, including the market for implantable cardioverter defibrillators, or ICDs.
Hawkins in January ratcheted back Medtronic's long-term sales growth outlook to a 5% to 8% range, but the company continues to target earnings growth in a double-digit range, indicating the need to control costs.
Because ICDs protect patients at risk for sudden cardiac death, they aren't viewed as vulnerable to an economic slump. But Hawkins noted during Medtronic's recent quarterly earnings call that other parts of the company are, including products that fix spinal problems, along with products in Medtronic's diabetes and surgical technologies businesses.
"There is a lot of uncertainty in the global economy right now and Medtronic is not immune to that," spokesman Cragle said.
He noted Medtronic feels it had a solid fiscal third quarter, in which the company showed some signs of stability in key markets where it has struggled with competitive pressure.
"Despite that performance, we still see a lot of uncertainty ahead," Cragle said.
Medtronic announced plans in May last year to trim about 1,100 jobs as it realigned the workforce, with cuts targeting businesses where growth had slowed or where the company saw a chance to improve its operating leverage. The cuts were set to take place throughout the current fiscal year, and were expected at that time to be offset to an unspecified degree with hiring in faster-growing businesses.
Medtronic recently traded down six cents to $33.80.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com (END) Dow Jones Newswires
02-26-09 1058ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Friday, February 27, 2009
Thursday, February 26, 2009
FumeRunner: Intact Medical
Intact Medical last raised money about 1 year ago.
According to PWC's MoneyTree Survey Q2 2008:
Website: www.intactmedical.com
$ Received: $4,911,000
Financing Sequence: 10
Investors in Q2 2008 :
Morgenthaler Ventures
Undisclosed Venture Firm
According to PWC's MoneyTree Survey Q2 2008:
Website: www.intactmedical.com
$ Received: $4,911,000
Financing Sequence: 10
Investors in Q2 2008 :
Morgenthaler Ventures
Undisclosed Venture Firm
Wednesday, February 25, 2009
Layoffs: Seracare Life Sciences
SeraCare Reports First Quarter Fiscal Year 2009 Results
Tuesday February 17, 4:03 pm ET
...
“During the first quarter, we took a series of actions to optimize our opportunity for growth in the core business while reducing spending levels in support of our profitability improvement goals,” stated Gregory Gould, Chief Financial Officer. “The actions taken include a workforce reduction of over 10%, the suspension of annual salary increases for senior management and executives and other spending reductions across all areas of our operations. As a result of the global economic downturn, the Company did take a goodwill impairment which resulted in a $15.1 million charge this quarter, however we remain focused on growing the business and believe the value proposition of the Company’s business continues to be very promising.”
Tuesday February 17, 4:03 pm ET
...
“During the first quarter, we took a series of actions to optimize our opportunity for growth in the core business while reducing spending levels in support of our profitability improvement goals,” stated Gregory Gould, Chief Financial Officer. “The actions taken include a workforce reduction of over 10%, the suspension of annual salary increases for senior management and executives and other spending reductions across all areas of our operations. As a result of the global economic downturn, the Company did take a goodwill impairment which resulted in a $15.1 million charge this quarter, however we remain focused on growing the business and believe the value proposition of the Company’s business continues to be very promising.”
Layoffs: NMT Medical
NMT Medical Provides Preliminary Year End Financial Results and Clinical Trial Update
Tuesday January 13, 2009 8:00 am ET
...
As part of its ongoing review of the business, NMT implemented a series of cost reduction initiatives, including reducing headcount throughout the organization, reprioritizing its internal programs and restructuring various departments. These changes and adjustments also include both executive management and Board of Director compensation and stipend reductions.
“Given the current economic climate and the importance of our capital resources, we determined that it was prudent for us to reduce our expense levels,” said NMT Medical President and Chief Executive Officer John E. Ahern. “We remain confident that we have sufficient resources to complete our landmark CLOSURE I trial and bring the STARFlex® implant to the commercial market in the United States, pending U.S. Food and Drug Administration (FDA) approval.”
Executive Vice President and Chief Financial Officer Richard E. Davis said, “As we have indicated in the past, while we do not anticipate a fundraising effort in the near-term, we continue to evaluate alternative financing options should the Company choose to increase its liquidity in the future. Looking ahead, we expect our burn rate will decrease significantly in 2009 given the completion of our clinical trial enrollment work and the actions we have recently taken to reduce costs.
Tuesday January 13, 2009 8:00 am ET
...
As part of its ongoing review of the business, NMT implemented a series of cost reduction initiatives, including reducing headcount throughout the organization, reprioritizing its internal programs and restructuring various departments. These changes and adjustments also include both executive management and Board of Director compensation and stipend reductions.
“Given the current economic climate and the importance of our capital resources, we determined that it was prudent for us to reduce our expense levels,” said NMT Medical President and Chief Executive Officer John E. Ahern. “We remain confident that we have sufficient resources to complete our landmark CLOSURE I trial and bring the STARFlex® implant to the commercial market in the United States, pending U.S. Food and Drug Administration (FDA) approval.”
Executive Vice President and Chief Financial Officer Richard E. Davis said, “As we have indicated in the past, while we do not anticipate a fundraising effort in the near-term, we continue to evaluate alternative financing options should the Company choose to increase its liquidity in the future. Looking ahead, we expect our burn rate will decrease significantly in 2009 given the completion of our clinical trial enrollment work and the actions we have recently taken to reduce costs.
Layoffs: Analogic
AP
Analogic to cut 140 jobs amid economic turmoilWednesday January 28, 2:34 pm ET
Analogic to cut 140 jobs, or 9 percent of work force, amid economic turmoil
PEABODY, Mass. (AP) -- Analogic Corp., a provider of medical imaging and aviation security technology, said Wednesday it is cutting about 140 jobs, or 9 percent of its work force, because of the global economic turmoil.
The company said the job reductions, along with other cost-cutting plans, will lead to annual cost savings of about $9.6 million.
Analogic added it expects to take a restructuring charge of $3.4 million during the fiscal second quarter, which ends in January.
Analogic to cut 140 jobs amid economic turmoilWednesday January 28, 2:34 pm ET
Analogic to cut 140 jobs, or 9 percent of work force, amid economic turmoil
PEABODY, Mass. (AP) -- Analogic Corp., a provider of medical imaging and aviation security technology, said Wednesday it is cutting about 140 jobs, or 9 percent of its work force, because of the global economic turmoil.
The company said the job reductions, along with other cost-cutting plans, will lead to annual cost savings of about $9.6 million.
Analogic added it expects to take a restructuring charge of $3.4 million during the fiscal second quarter, which ends in January.
Layoffs: Palomar Medical
from their earnings call
http://seekingalpha.com/article/120983-palomar-medical-technologies-inc-q4-2008-earnings-call-transcript?source=yahoo&page=-1
Joe Caruso (President):
...Our goal is to remain cash flow neutral during this recession. This will not be easy as it is difficult to predict how long and deep this recession will be. We have taken steps to decrease our operating expenses in all areas of the Company including reductions in headcount and salary freezes. We will continue to monitor and adjust as we move forward.
http://seekingalpha.com/article/120983-palomar-medical-technologies-inc-q4-2008-earnings-call-transcript?source=yahoo&page=-1
Joe Caruso (President):
...Our goal is to remain cash flow neutral during this recession. This will not be easy as it is difficult to predict how long and deep this recession will be. We have taken steps to decrease our operating expenses in all areas of the Company including reductions in headcount and salary freezes. We will continue to monitor and adjust as we move forward.
Layoffs: Candela Corporation
from the company press release:
Candela Reports Second Quarter 2009 Financial Results
Jan. 20, 2009
...
The Company also reported cost reductions across the organization including a reduction in force and compensation reductions for all of its employees worldwide.
...
Candela Reports Second Quarter 2009 Financial Results
Jan. 20, 2009
...
The Company also reported cost reductions across the organization including a reduction in force and compensation reductions for all of its employees worldwide.
...
Layoffs: Philips Healthcare
More layoffs reported by xconomy's layoff tracker
http://www.xconomy.com/boston/2008/11/13/the-boston-tech-layoff-tracker/
http://www.xconomy.com/boston/2008/11/21/1600-layoffs-at-philips-healthcare-unit/
1,600 Layoffs at Philips Healthcare Unit
Wade Roush 11/21/08
The healthcare unit of Royal Philips NV, headquartered in Andover MA, will cut 1,600 positions worldwide as part of a restructuring effort that is only partly related to the economic downturn, according to reports today in the Eagle-Tribune, a local newspaper in Andover, and the Boston Globe. About 100 people at the Andover facility will be among those let go. The move comes only a few months after Philips announced it would move the healthcare division’s headquarters to Andover from New York.
http://www.xconomy.com/boston/2008/11/13/the-boston-tech-layoff-tracker/
http://www.xconomy.com/boston/2008/11/21/1600-layoffs-at-philips-healthcare-unit/
1,600 Layoffs at Philips Healthcare Unit
Wade Roush 11/21/08
The healthcare unit of Royal Philips NV, headquartered in Andover MA, will cut 1,600 positions worldwide as part of a restructuring effort that is only partly related to the economic downturn, according to reports today in the Eagle-Tribune, a local newspaper in Andover, and the Boston Globe. About 100 people at the Andover facility will be among those let go. The move comes only a few months after Philips announced it would move the healthcare division’s headquarters to Andover from New York.
Layoffs: Helicos Biosciences
More layoffs from xconomy.com
Helicos Cuts 30 Percent of Workforce
Luke Timmerman 12/4/08
Helicos Biosciences, the Cambridge, MA-based maker of genetic analysis tools, said today in a regulatory filing it is cutting 30 percent of its workforce, about 30 jobs, to conserve cash. The cuts will come between now and the end of the year, and cause the company to take a $450,000 charge for termination benefits. Earlier in the week, Helicos named Ronald Lowy its new CEO, replacing Steve Lombardi, who was demoted to president. Back in July, Lombardi said the company had about 100 employees, and that it planned to grow in Massachusetts because Gov. Deval Patrick’s life sciences initiative included support for workforce training.
Helicos Cuts 30 Percent of Workforce
Luke Timmerman 12/4/08
Helicos Biosciences, the Cambridge, MA-based maker of genetic analysis tools, said today in a regulatory filing it is cutting 30 percent of its workforce, about 30 jobs, to conserve cash. The cuts will come between now and the end of the year, and cause the company to take a $450,000 charge for termination benefits. Earlier in the week, Helicos named Ronald Lowy its new CEO, replacing Steve Lombardi, who was demoted to president. Back in July, Lombardi said the company had about 100 employees, and that it planned to grow in Massachusetts because Gov. Deval Patrick’s life sciences initiative included support for workforce training.
Layoffs: Cynosure
Check out the layoff tracker at xconomy.com!
(http://www.xconomy.com/boston/2008/11/13/the-boston-tech-layoff-tracker/)
http://www.xconomy.com/boston/2009/01/15/cynosure-cuts-285-jobs/
Cynosure Cuts 60 Jobs
Robert Buderi 1/15/09
[Corrected 1/21/09] Westford, MA-based Cynosure, which develops laser systems used in cosmetic surgery, announced today that it laid off 17 percent of its global workforce, amounting to approximately 60 people, at the end of 2008. The company said it expected these cuts and other spending reductions to save approximately $8 million to $10 million in 2009.
(http://www.xconomy.com/boston/2008/11/13/the-boston-tech-layoff-tracker/)
http://www.xconomy.com/boston/2009/01/15/cynosure-cuts-285-jobs/
Cynosure Cuts 60 Jobs
Robert Buderi 1/15/09
[Corrected 1/21/09] Westford, MA-based Cynosure, which develops laser systems used in cosmetic surgery, announced today that it laid off 17 percent of its global workforce, amounting to approximately 60 people, at the end of 2008. The company said it expected these cuts and other spending reductions to save approximately $8 million to $10 million in 2009.
FumeRunner: TransMedics
from their website:
TransMedics, Inc., Closes $25.5 Million in Series D FundingAndover, MA - April 13, 2007
TransMedics, Inc., an emerging medical technology company developing advanced solutions to address the unmet need for better, more effective organ transplants, announced today that it has closed a $25.5 million Series D private equity financing led by funds affiliated with and advised by Tudor Investments.
TransMedics has raised over $90 million in venture capital funding with investments from the following firms:
3i Group
Alta Partners
CB Health Ventures
Flagship Ventures
JP Morgan
Posco BioVentures
Sagamore Bioventures
Sherbrooke Capital
Tudor Investment Corporation
VantagePoint Venture Partners
TransMedics, Inc., Closes $25.5 Million in Series D FundingAndover, MA - April 13, 2007
TransMedics, Inc., an emerging medical technology company developing advanced solutions to address the unmet need for better, more effective organ transplants, announced today that it has closed a $25.5 million Series D private equity financing led by funds affiliated with and advised by Tudor Investments.
FumeRunner: InfraReDx
Medical Device Daily 1/16/09
InfraReDx has currently raised more than $87 million in private funds and is in the process of raising a $20 million C-2 round that [CEO James] Mueller (sic) said "will get us to financial breakeven."
InfraReDx has currently raised more than $87 million in private funds and is in the process of raising a $20 million C-2 round that [CEO James] Mueller (sic) said "will get us to financial breakeven."
Thursday, February 19, 2009
R.I.P. ndo Surgical
The "Passing On" of the NDO Plicator
As many of reflux sufferers know by now, the NDO Surgical group was acquired by another medical device company. After several years of success with the Plicator in the arena of true incisionless antireflux surgery, the Plicator system as of May of 2008 is no longer available. To be clear, the removal of Plicator was not because of any fault of the device. In fact, the application of multiple plications with Plicator was demonstrating better clinical success than a single plication. The decision to withdraw the product was most likely due to the poor insurance carrier coverage for this type of procedure that has prevented other advanced gastrointestinal endoscopist from adopting the technique. Therefore, driving sales of the product was impaired. Until the dust settles with regard to the battle for insurance coverage for these procedures, this will be a recurrent problem for all newer technologies and techniques.
Posted by Dr. Starpoli at 06:41
As many of reflux sufferers know by now, the NDO Surgical group was acquired by another medical device company. After several years of success with the Plicator in the arena of true incisionless antireflux surgery, the Plicator system as of May of 2008 is no longer available. To be clear, the removal of Plicator was not because of any fault of the device. In fact, the application of multiple plications with Plicator was demonstrating better clinical success than a single plication. The decision to withdraw the product was most likely due to the poor insurance carrier coverage for this type of procedure that has prevented other advanced gastrointestinal endoscopist from adopting the technique. Therefore, driving sales of the product was impaired. Until the dust settles with regard to the battle for insurance coverage for these procedures, this will be a recurrent problem for all newer technologies and techniques.
Posted by Dr. Starpoli at 06:41
R.I.P. LumeRx?
May, 2008 - LumeRx reported several events concerning its plans moving forward. Trial results analysis from work recently completed in India reveals current visible light approaches are not adequate as a primary treatment for H. Pylori. As a result of these findings, the Company's investors have decided to not invest further in LumeRx and to scale back operations. Jon McGrath has stepped down from his position as CEO with day-to-day responsibilities assumed by David Hendren of Catalyst Health Ventures. Catalyst and other investors are now considering the future course for the LumeRx. http://www.masshightech.com/stories/2008/05/26/weekly13-Future-is-unclear-as-LumeRx-shuffles-execs,-Gabrieli-ends-funding.html
Wednesday, February 18, 2009
Watchlist: Acusphere
Acusphere Announces Change In Imagify Regulatory Strategy and Deferral of Near-Term Contractual Cash Payments
WATERTOWN, Mass., Feb 17, 2009 (BUSINESS WIRE) --
The Company has engaged in discussions to reduce, defer or eliminate costs to ensure that it can fund its operations beyond the anticipated PDUFA date of May 31, 2009. The Company also announced today that it had completed the renegotiation of payment terms under certain intellectual property agreements. Payments totaling approximately $6.7 million due in 2009 will be reduced to $350,000 immediately, with another $350,000 payable upon a financing of the company, and the remainder due in 2013. In addition, the Company announced last week that the Board of Directors elected not to declare a quarterly cash dividend to holders of it 6.5% convertible exchangeable preferred stock that was otherwise payable on March 1, 2009, saving an additional $195,000.
Lawrence A. Gyenes, Chief Financial Officer of Acusphere, said, "We are very pleased to reach these agreements. These actions will carry us into June 2009 at our current burn rate and, together with discussions already in progress and other cost reduction initiatives, could allow us to explore strategic partnerships and financing alternatives following the receipt of the FDA response to our proposed amendment."
WATERTOWN, Mass., Feb 17, 2009 (BUSINESS WIRE) --
The Company has engaged in discussions to reduce, defer or eliminate costs to ensure that it can fund its operations beyond the anticipated PDUFA date of May 31, 2009. The Company also announced today that it had completed the renegotiation of payment terms under certain intellectual property agreements. Payments totaling approximately $6.7 million due in 2009 will be reduced to $350,000 immediately, with another $350,000 payable upon a financing of the company, and the remainder due in 2013. In addition, the Company announced last week that the Board of Directors elected not to declare a quarterly cash dividend to holders of it 6.5% convertible exchangeable preferred stock that was otherwise payable on March 1, 2009, saving an additional $195,000.
Lawrence A. Gyenes, Chief Financial Officer of Acusphere, said, "We are very pleased to reach these agreements. These actions will carry us into June 2009 at our current burn rate and, together with discussions already in progress and other cost reduction initiatives, could allow us to explore strategic partnerships and financing alternatives following the receipt of the FDA response to our proposed amendment."
Watchlist: Biopure
Biopure Exploring Strategic Options
--Earnings for year ended October 31, 2008, contained in Annual Report filed on February 13, 2009, with Going Concern Modification
Last update: 2:59 p.m. EST Feb. 17, 2009
CAMBRIDGE, Mass., Feb 17, 2009 /PRNewswire-FirstCall via COMTEX/ -- Biopure Corporation (BPUR) announced today that it is exploring strategic options for financing or alternative transactions. The company has engaged Newbury Piret & Co. to advise on options, including evaluation of nonbinding proposals that have been received. There should be no assumption that this process will result in any transaction or any particular type of transaction.
On February 13, 2009, the company filed with the SEC its Annual Report on Form 10-K, which contains the company's financial statements for the two years ended October 31, 2008. The company does not intend to issue a separate earnings release. The report of the company's independent registered public accounting firm contained in this filing is modified with respect to the company's ability to continue as a going concern.
--Earnings for year ended October 31, 2008, contained in Annual Report filed on February 13, 2009, with Going Concern Modification
Last update: 2:59 p.m. EST Feb. 17, 2009
CAMBRIDGE, Mass., Feb 17, 2009 /PRNewswire-FirstCall via COMTEX/ -- Biopure Corporation (BPUR) announced today that it is exploring strategic options for financing or alternative transactions. The company has engaged Newbury Piret & Co. to advise on options, including evaluation of nonbinding proposals that have been received. There should be no assumption that this process will result in any transaction or any particular type of transaction.
On February 13, 2009, the company filed with the SEC its Annual Report on Form 10-K, which contains the company's financial statements for the two years ended October 31, 2008. The company does not intend to issue a separate earnings release. The report of the company's independent registered public accounting firm contained in this filing is modified with respect to the company's ability to continue as a going concern.
Sunday, February 15, 2009
R.I.P. Cyberkinetics
January 2009 R.I.P. Cyberkinetics
January 2009
NeuroMetrix, Inc. (NURO) ... announced today that it has acquired certain technological and intellectual property assets from Cyberkinetics Neurotechnology Systems, Inc. and Andara Life Science, Inc., a wholly-owned subsidiary of Cyberkinetics, for $350,000 in cash.
The acquired assets include all of Cyberkinetics' rights and regulatory filings for the Andara(TM) Oscillating Field Stimulator (OFS(TM)) technology for treatment of acute spinal cord injury, an investigational device designed to stimulate spinal cord repair and restore sensation; the rights to develop and commercialize a therapeutic product for peripheral nerve injury based on the Andara OFS neurostimulation technology; development and commercialization rights to certain derivatives of the pharmacological agent 4-aminopyridine that may be useful in the treatment of central and peripheral nervous system injury and disease; and certain other intellectual property and technology.
November 2008
ITEM 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers On and effective October 30, 2008, John P. Donoghue resigned as a member of the Board of Directors of Cyberkinetics Neurotechnology Systems, Inc. (the “Company”). Mr. Donoghue’s resignation is not the result of a disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
On and effective October 30, 2008, Nicholas G. Hatsopoulos resigned as a member of the Board of Directors of the Company. Mr. Hatsopoulos’ resignation is not the result of a disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
The vacancies on the Board of Directors created by these resignations will not be filled at the current time.
ITEM 8.01 Other Events Based on our most recent informal communication with the FDA, we do not anticipate that we will receive approval of the Andara HDE before the end of 2008, if at all. The FDA has indicated to us that they are planning to issue a letter communicating additional concerns about the data we have provided to date. We do not have any specific information about the content or any estimate of the timing of this letter. Furthermore, we have no information from the FDA as to what additional information or data might be required to receive such approval. We have been unsuccessful in raising any additional capital and do not anticipate being able to raise additional capital to continue operations due to the uncertainty concerning what might be required to obtain FDA approval, combined with current market conditions.
Our existing cash and cash equivalents are only sufficient to meet our projected operating requirements for approximately 30 days. Consequently, we are in the process of negotiating with our secured creditor, General Electric Capital Corporation (“GECC”), to allow us to proceed with an orderly wind down of the Company. If we are not successful in our efforts to develop a mutually acceptable wind down plan with GECC, we plan to cease operations and we may seek bankruptcy protection.
January 2009
NeuroMetrix, Inc. (NURO) ... announced today that it has acquired certain technological and intellectual property assets from Cyberkinetics Neurotechnology Systems, Inc. and Andara Life Science, Inc., a wholly-owned subsidiary of Cyberkinetics, for $350,000 in cash.
The acquired assets include all of Cyberkinetics' rights and regulatory filings for the Andara(TM) Oscillating Field Stimulator (OFS(TM)) technology for treatment of acute spinal cord injury, an investigational device designed to stimulate spinal cord repair and restore sensation; the rights to develop and commercialize a therapeutic product for peripheral nerve injury based on the Andara OFS neurostimulation technology; development and commercialization rights to certain derivatives of the pharmacological agent 4-aminopyridine that may be useful in the treatment of central and peripheral nervous system injury and disease; and certain other intellectual property and technology.
November 2008
ITEM 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers On and effective October 30, 2008, John P. Donoghue resigned as a member of the Board of Directors of Cyberkinetics Neurotechnology Systems, Inc. (the “Company”). Mr. Donoghue’s resignation is not the result of a disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
On and effective October 30, 2008, Nicholas G. Hatsopoulos resigned as a member of the Board of Directors of the Company. Mr. Hatsopoulos’ resignation is not the result of a disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
The vacancies on the Board of Directors created by these resignations will not be filled at the current time.
ITEM 8.01 Other Events Based on our most recent informal communication with the FDA, we do not anticipate that we will receive approval of the Andara HDE before the end of 2008, if at all. The FDA has indicated to us that they are planning to issue a letter communicating additional concerns about the data we have provided to date. We do not have any specific information about the content or any estimate of the timing of this letter. Furthermore, we have no information from the FDA as to what additional information or data might be required to receive such approval. We have been unsuccessful in raising any additional capital and do not anticipate being able to raise additional capital to continue operations due to the uncertainty concerning what might be required to obtain FDA approval, combined with current market conditions.
Our existing cash and cash equivalents are only sufficient to meet our projected operating requirements for approximately 30 days. Consequently, we are in the process of negotiating with our secured creditor, General Electric Capital Corporation (“GECC”), to allow us to proceed with an orderly wind down of the Company. If we are not successful in our efforts to develop a mutually acceptable wind down plan with GECC, we plan to cease operations and we may seek bankruptcy protection.
R.I.P. Avitar Inc.
August 2008 R.I.P. Avitar Inc.
Form 8-K for AVITAR INC /DE/
--------------------------------------------------------------------------------
18-Aug-2008
Entry into a Material Definitive Agreement, Completion of Acquisition or Disposit
Item 1.01 Entry into a Material Definitive Agreement. On August 5, 2008, the Company entered into an Asset Purchase Agreement for the sale of assets of its foam business to Carwild Corp. for gross proceeds of $175,000 subject to various conditions including clear title.
Item 2.01 Completion of Acquisition or Disposition of Assets. The sale of assets of the Company's foam business to Carwild Corp. for gross proceeds of $175,000, as referred to in Item 1.01 above, was closed on August 15, 2008.
Item 5.01 Changes in Control of Registrant. On August 15, 2008, all executive officers and directors resigned and Cory Gelmon was appointed as the sole officer and director of the Company effective upon the close of business August 15, 2008.
It is expected that the former executive officers will serve as consultants in connection with the proposed sale of assets of the Company's diagnostic business and the closing of certain business operations. The new management is expected to hire a Vice President of sales for the purpose of sourcing lines of diagnostic products for resale and also enter into a Joint Venture Agreement with Premier Medical to sell Nerve Conduction Velocity ("NCV") tests in specified areas.
5-May-2008
Item 8.01 Other Events. As previously reported, the Company requires significant additional financing from outside sources. At this time, the Company has been unable to obtain commitments for the necessary financing.
Without the additional financing, the Company will be required to take the necessary steps to reduce its operating costs. This will involve personnel reductions and suspending business operations. The Company intends to maintain a skeletal staff until additional financing is obtained or other arrangements are made.
From September 2005 through December 2007, the Company raised funds by executing convertible secured notes in the aggregate principal amount of $6,815,000. However, since December 31, 2007, the Company has raised only $310,000 of gross proceeds of additional financing. Although the Company has been seeking additional financing and exploring alternative sources of financing, as noted above nothing has been secured at this time.
Form 8-K for AVITAR INC /DE/
--------------------------------------------------------------------------------
18-Aug-2008
Entry into a Material Definitive Agreement, Completion of Acquisition or Disposit
Item 1.01 Entry into a Material Definitive Agreement. On August 5, 2008, the Company entered into an Asset Purchase Agreement for the sale of assets of its foam business to Carwild Corp. for gross proceeds of $175,000 subject to various conditions including clear title.
Item 2.01 Completion of Acquisition or Disposition of Assets. The sale of assets of the Company's foam business to Carwild Corp. for gross proceeds of $175,000, as referred to in Item 1.01 above, was closed on August 15, 2008.
Item 5.01 Changes in Control of Registrant. On August 15, 2008, all executive officers and directors resigned and Cory Gelmon was appointed as the sole officer and director of the Company effective upon the close of business August 15, 2008.
It is expected that the former executive officers will serve as consultants in connection with the proposed sale of assets of the Company's diagnostic business and the closing of certain business operations. The new management is expected to hire a Vice President of sales for the purpose of sourcing lines of diagnostic products for resale and also enter into a Joint Venture Agreement with Premier Medical to sell Nerve Conduction Velocity ("NCV") tests in specified areas.
5-May-2008
Item 8.01 Other Events. As previously reported, the Company requires significant additional financing from outside sources. At this time, the Company has been unable to obtain commitments for the necessary financing.
Without the additional financing, the Company will be required to take the necessary steps to reduce its operating costs. This will involve personnel reductions and suspending business operations. The Company intends to maintain a skeletal staff until additional financing is obtained or other arrangements are made.
From September 2005 through December 2007, the Company raised funds by executing convertible secured notes in the aggregate principal amount of $6,815,000. However, since December 31, 2007, the Company has raised only $310,000 of gross proceeds of additional financing. Although the Company has been seeking additional financing and exploring alternative sources of financing, as noted above nothing has been secured at this time.
R.I.P. Omnisonics
February 2009 RIP Omnisonics
February 2009 - Ex-staff reports that the doors are closed.
Sept 12, 2008 -- OmniSonics announced that it has entered into a licensing and development agreement with Boston Scientific Corporation for technology to treat thromboembolic acute ischemic stroke.
December 2007 - OmniSonics venture funding reported by VentureDeal
Wilmington, MA 01887
$ Received: $10,021,000
Financing Sequence: 7
Description: Develops medical devices that uses ultrasonic energy.
Investors in Q4 2007 : Canaan Partners, Domain Associates LLC, General Electric Pension Trust, Prism Venture Partners, Private Equity Group, The (Nomura)
Investors in Q4 2007 : Canaan Partners, Domain Associates LLC, General Electric Pension Trust, Prism Venture Partners, Private Equity Group, The (Nomura)
R.I.P. Spherics
MassHighTech 8/20/08
[In July] the Mansfield-based company auctioned off its physical equipment assets after the company filed for bankruptcy as it was unable to raise any more funds. Following that auction, the IP sale rights for the benefit of creditors was assigned to accountant Joseph F. Finn, Jr. of Wellesley Hills.
Spherics has developed systems based on its proprietary bioadhesive polymers, which will help drug compounds remain at the target absorptive site long enough to be effective. According to officials, the benefits of the company’s technologies include improving effectiveness, reducing side effects, providing more consistent drug levels and enhancing compliance.
Spherics was formed in 1997 with $200,000 in financing from the Slater Center for Biomedical Technology in Providence, R.I., which has since been paid. Since then, the company has received three rounds of venture capital investments totaling $40.4 million. In 2005, the company received a $2.5 million loan from MassDevelopment’s Emerging Technology Fund (ETF) to move its headquarters and research operations to Mansfield from Rhode Island.
Spherics has developed systems based on its proprietary bioadhesive polymers, which will help drug compounds remain at the target absorptive site long enough to be effective. According to officials, the benefits of the company’s technologies include improving effectiveness, reducing side effects, providing more consistent drug levels and enhancing compliance.
Spherics was formed in 1997 with $200,000 in financing from the Slater Center for Biomedical Technology in Providence, R.I., which has since been paid. Since then, the company has received three rounds of venture capital investments totaling $40.4 million. In 2005, the company received a $2.5 million loan from MassDevelopment’s Emerging Technology Fund (ETF) to move its headquarters and research operations to Mansfield from Rhode Island.
R.I.P. Innovative Spinal Technologies
MassHighTech 2/4/09
"Mansfield-based medical device firm Innovative Spinal Technologies Inc.has apparently ceased operations, according to published reports.
The company, based in the Cabot Business Park, has dismissed its staff and its plant is now vacant, according to a recent article in the Attleboro-based Sun Chronicle newspaper. The Innovative website is not currently accessible, and a call placed to the firm for comment went unanswered.
The firm was launched in 2002 in Texas and was funded by a $6.2 million investment from backers that included General Electric Healthcare Technologies Inc. The company was focused on minimally invasive spine surgery and motion preservation. In 2005, it closed on a $39 million Series B round and relocated to the Boston area. According to the Sun Chronicle, Innovative had also cut a deal with the town of Mansfield to pay reduced local property taxes. After receiving the break, the firm expanded from six employees to 80 workers, the article claimed."
The company, based in the Cabot Business Park, has dismissed its staff and its plant is now vacant, according to a recent article in the Attleboro-based Sun Chronicle newspaper. The Innovative website is not currently accessible, and a call placed to the firm for comment went unanswered.
The firm was launched in 2002 in Texas and was funded by a $6.2 million investment from backers that included General Electric Healthcare Technologies Inc. The company was focused on minimally invasive spine surgery and motion preservation. In 2005, it closed on a $39 million Series B round and relocated to the Boston area. According to the Sun Chronicle, Innovative had also cut a deal with the town of Mansfield to pay reduced local property taxes. After receiving the break, the firm expanded from six employees to 80 workers, the article claimed."
Condolences!
Welcome to the graveyard for New England medical device companies that just couldn't hang on any longer. And maybe we'll track layoffs too.
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