NxStage takes in $43M from equities sale

Medical device firm NxStage Medical Inc. says that it has raised $43 million through private placement of its common stock and warrants.

Officials at Lawrence-based NxStage (Nasdaq: NXTM) said the private placement consists of 9.6 million shares of NxStage common stock at a price of $4.50 per share and warrants to purchase 1.9 million shares of common stock at an exercise price of $5.50 per share.

Those prices may be adjusted to $3 or $6.50 depending upon whether NxStage achieves certain targets in trials of patients with End Stage Renal Disease who are receiving therapy with the NxStage System One as of December 31, 2008.

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The stock sale will be closed in two tranches, officials said. NxStage will sell the first tranche of $25 million to funds managed or advised by OrbiMed Advisors LLC on or before May 28, 2008. NxStage has agreed to appoint one individual nominated by OrbiMed Advisors to fill a vacancy on the company's board of directors. The company has agreed to sell the second $18 million tranche to existing NxStage institutional investors and is subject to stockholder approval.

NxStage makes products for the treatment of end-stage renal disease and acute kidney failure. The company reported a $58.4 million loss for 2007, on revenue of $60 million.