FumeRunner: Oscient Pharmaceuticals receives "going concern" warning from auditors

By Val Brickates Kennedy

Last update: 9:12 a.m. EDT March 25, 2009

BOSTON (MarketWatch) -- Oscient Pharmaceuticals (OSCI) said early Wednesday in its fourth quarter 2008 financial report that its auditors have warned it may not be able to continue as a going concern because of lack of cash. The biotechnology company reported that while it had 2008 revenues of about $87 million, it had a net loss of $65 million and only has $17 million in cash on hand. Oscient said that it has engaged Broadpoint Capital to explore strategic options for the company, including a possible sale. Waltham, Mass.-based Oscient, which markets the cardiovascular drug Antara and antibiotic Factive, has 213 employees.

Lifeline: NxStage

NxStage Announces Credit Facility Amendment --Company Completes First Step to Restructure Repayment Schedule

LAWRENCE, Mass., March 16, 2009 /PRNewswire-

NxStage Medical, Inc. today announced that it has entered into an amendment of its November 21, 2007 credit and security agreement with a group of lenders led by GE Business Financial Services Inc. The amendment postpones principal payments under the term loan for three months, from April through June 2009, decreases the minimum net revenue covenants and adds certain minimum liquidity and minimum adjusted consolidated EBITDA targets.

Robert Brown, Chief Financial Officer of NxStage Medical. "This amendment provides the Company with additional flexibility to remain in compliance with its terms and covenants, and the revised facility terms reflect the impact of the current economic conditions."

In connection with this amendment, the Company paid a $0.5 million amendment fee and agreed to increase the interest rate on the facility's term loan from 10.42% to 11.12% per annum. Interest on any borrowings under the revolving credit facility now includes a LIBOR floor of 4% plus 6.5%. Previously, the interest rate for the revolver had no floor on LIBOR. Additional security was also provided by expanding the collateral base to include all intellectual property held by NxStage.

Lifeline: Insulet

Insulet Receives $60 Million Funding Commitment --Credit Facility Secured with Deerfield Management

BEDFORD, Mass, March 16, 2009 /PRNewswire

Insulet today announced that it has entered into an agreement with Deerfield Management Company to provide Insulet with up to $60 million in financing through a flexible credit facility.

Duane DeSisto, President and Chief Executive Officer of Insulet Corporation: "This $60 million facility is an attractive form of financing that limits dilution for our shareholders and gives Insulet access to capital to fuel our growth."

Under the terms of the agreement, Deerfield will provide Insulet with $27.5 million within fifteen business days of signing and has committed up to $32.5 million in additional funding to be drawn by Insulet at its discretion over the next twenty months based on the achievement of certain financial performance milestones. Any amounts drawn will accrue interest until maturity at a rate of 9.75 percent per annum which is payable on a quarterly basis. Insulet will pay a 2.75 percent per annum interest rate on undrawn amounts. The funds drawn are repayable in September 2012.

FumeRunner: Insulet

Insulet Reports Fourth Quarter and Year End 2008 Results
--Company Records 172% Year over Year Revenue Growth and First Full Quarter of Gross Profit --
BEDFORD, Mass., March 5, 2009 /PRNewswire-
...
As of December 31, 2008, the Company's cash and cash equivalents totaled $56.7 million
...
2009 Outlook & Organizational Expansion
...
The Company expects its 2009 operating loss to be in the range of $50 to $60 million.

Layoffs: Acusphere

Wednesday, March 4, 2009
Acusphere to cut jobs, close Watertown facility
By Mass High Tech staff

Watertown-based pharmaceutical development company Acusphere Inc. has announced cost reduction plans that include 40 job cuts, the closing of its Watertown facility, consolidation at the company’s Tekwsbury manufacturing site and a Form 15 filing with the U.S. Securities and Exchange Commission. The restructuring is related to company efforts to add cash flow and help with U.S. Food and Drug Administration discussions over the approval of its Imagify for Injectable Suspension product.

Acusphere (OTCBB: ACUS) said the 40 job losses represent about two-thirds of the company staff and will affect roles in drug development, quality systems, manufacturing, regulatory, finance and administration. Company senior vice president and chief financial officer Lawrence Gyenes is included in the expected layoffs, with no plan to replace his position, Acusphere officials reported. The workforce reduction will save the company about $3.9 million annually.

The company also signed an agreement to end the lease on its Watertown headquarters, which is expected to save Acusphere about $3.6 million through 2012.The voluntary Form 15 filing calls for the suspension of Acusphere’s SEC reporting need. As a result, Acusphere’s common stock will not be able to be traded on any national stock exchange, nor the OTC Bulletin Board; Trading may still take place on the Pink Sheets.

Layoffs: Medtronic

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.

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