Tuesday, August 19, 2008

Abiomed aims for $40M in follow-on stock sale

By Mass High Tech Staff

Medical device maker Abiomed Inc. is selling 2.4 million shares of common stock in a new offering.  At an recent average price of $17 per share, Abiomed could see about $40 million from the stock sale.

The offering falls under a shelf registration statement that Danvers-based Abiomed (Nasdaq: ABMD) filed in October 2006. Morgan Stanley & Co. Inc. will be the only underwriter for the offering, officials said.

Abiomed, which makes cardiac support devices, in July reported it had signed a lease on a manufacturing facility in Athone, Ireland, with plans to begin operations in about a year and a half. The space gave Abiomed 33,000 square feet total, including 10,000 square feet of clean room space, to dedicate to production of its Impella 2.5 cardiac-assist device. The device received U.S. Food and Drug Administration 510(k) clearance in early June.

The Impella is designed to be inserted into the body through the femoral artery to access the left ventricle and pumps 2.5 liters of blood per minute into the ascending aorta, according to Abiomed. The device is intended for use on patients in critical situations for up to six hours. Abiomed said the Impella is now cleared for the market in 40 countries, and it has been used in 1,500 patients.

The company said the site in Ireland will serve as the global center for production of disposable products like the Impella 2.5 and Impella 5.0.

In May, Abiomed gained U.S. federal reimbursement approval for its AbioCor artificial heart from the Centers for Medical and Medicaid Services, seen as key to the commercialization of the product.

Abiomed, which employs about 300 workers, reported a loss of $27.8 million on revenue of $50.6 million for 2007.