Medgenics raises $29.4 million in follow-on

Medgenics Inc. (LSE:MEDU; NYSE-M:MDGN) raised $29.4 million through the sale of 5.6 million units at $5.25 in a follow-on underwritten by Maxim Group; National Securities; and MLV. Each unit comprises a share and a five-year warrant to purchase 0.5 shares, with each whole warrant exercisable at $6.78. Medgenics proposed the offering on Thursday, when its share price in the U.S. was $5.65.

Medgenics most advanced product is Epodure, a transdermal biopump implant device that produces erythropoietin (EPO). The product is in an Israeli Phase IIa trial to treat anemia in dialysis patients with end-stage renal disease (ESRD). Medgenics plans to start Phase II testing in the U.S. for the indication later this year. ...