SyntheMed Closes $2.8 Million Equity Financing

SyntheMed, an Iselin, NJ-based biomaterials company, has completed the initial closing of a $2.8 million equity financing. The money will help fund the U.S. launch of the company’s REPEL-CV Bioresorbable Adhesion Barrier, planned for the fourth quarter.

REPEL-CV is placed over the heart at the end of open-heart surgery and is intended to block the transmission of fibrin that can lead to the formation of adhesions, or scar tissue. Adhesions connect tissues or organ surfaces that are not normally joined. They can cause significant complications in secondary surgical procedures, increasing the length, cost and risk of the procedure.

In September 2006, SyntheMed announced the results of a pivotal trial in which REPEL-CV was shown to provide a significant reduction in adhesions. The product is CE Marked, and SyntheMed has already established a network of independent distributors throughout Europe and South East Asia. The company learned in June that FDA’s Circulatory System Devices Advisory Panel will review its pre-market approval application for REPEL-CV in mid-September.

SyntheMed has a healthy pipeline of products under development. In addition to REPEL-CV, anti-adhesion products are in development for use in gynecologic, general and spine surgery. The company is also exploring the use of its materials in site-specific drug delivery — REPEL-AFIBTM is a drug delivery vehicle designed to prevent the onset of atrial fibrillation following open heart surgical procedures.

At this initial closing, SyntheMed issued and sold 2.8 million shares of common stock at $1.00 per share to a consortium of accredited overseas investors. The company has authorized the sale of an additional 3.2 million shares in the private placement on the same terms. The final closing of the placement is expected on or before August 31.

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