RNS Number : 3657V
MDY Healthcare PLC
09 July 2009
MDY Healthcare plc participates in over-subscribed
$8.1 million Series E financing for Medivance, Inc.
9 July 2009 - MDY Healthcare plc ('MDY Healthcare'), the strategic investor in healthcare companies, today announces that it has subscribed $1 million (approximately £630,000) in newly issued equity in Medivance, Inc ('Medivance').
This Series E financing of $8.1 million was led by affiliates of Black Rock, the US investment management company, and is intended to assist Medivance with funds for working capital, product development and to enable Medivance favorably to restructure its loans. The over-subscribed fund raising was heavily supported by existing shareholders.
MDY Healthcare had invested approximately £2.5 million in Medivance as at 31 March 2009. This follow on investment in Series E preferred shares gives MDY Healthcare a holding of 9.4%, on a fully diluted basis.
Medivance, the Colorado-based leader in the emerging field of therapeutic temperature management, has made excellent progress since MDY Healthcare first invested in December 2006, with the company's worldwide revenues increasing over three fold in this time. Additionally, Medivance's patented, FDA-approved Arctic Sun* device has significantly expanded its market presence and is now used in approximately 90% of the top twenty US hospital heart programs and fourteen of the top twenty US neurology programs (as defined by the US News and World 2008 American Best Hospital Report). In addition, it is also being increasingly adopted by smaller teaching and community hospitals. International adoption of Arctic Sun* continues in Europe, Asia and Australia. Medivance has now achieved 20 quarters of revenue growth in the past 21 quarters and is targeting continued growth in 2009.
Commenting on the investment, David Wong, Executive Director, said:
"We are delighted to continue to support Medivance, which has performed well ahead of plan since we originally invested. We believe that the company has fulfilled its goals since our original investment and is well set to continue its successful expansion."
Robert Kline, CEO of Medivance added:
"We are pleased to announce the closing of our Series E financing. MDY Healthcare's continued support is much appreciated. The adoption of therapeutic temperature management therapy continues to accelerate and Medivance has established clear leadership in all major geographic markets. The Series E financing will enable Medivance to continue to expand our business, launch new products and open new markets."
For further information, please contact:
MDY Healthcare plc
David Wong, Director +44 (0) 207 647 1800
david.wong@MDYhealthcare.com
Financial Dynamics
Ben Atwell, Susan Quigley +44 (0) 207 831 3113
ben.atwell@fd.com, susan.quigley@fd.com
Brewin Dolphin Limited (Nomad)
Matt Davis +44 (0) 845 270 8600
Notes for editors:
About MDY Healthcare
MDY Healthcare plc is a sector specialised strategic investing company quoted on AIM (ticker symbol: MDY). The company seeks to achieve superior returns for shareholders by investing globally in companies, both public and private, across the healthcare sector. The directors, executives and senior advisors have significant operational and investment experience in the sector and therefore the ability to identify and review a wide range of potential investments.
Further information can be found on the website www.mdyhealthcare.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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