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Nanosphere Reaches Distribution, Collaboration Deal with Hitachi; Completes $4.7M Financing

NEW YORK (GenomeWeb News) – Hitachi High-Technologies will distribute Nanosphere's products in Japan as part of a deal announced by Nanosphere after the close of the market on Monday.

Nanosphere also disclosed in a regulatory filing that it has completed a direct offering of its common stock raising net proceeds of roughly $4.7 million.

In addition to the distribution deal, Nanosphere said that it will collaborate with Hitachi on assay and platform development.

The agreement "plays a significant role in Nanosphere's global distribution strategy" by expanding its presence into one of the world's largest healthcare markets, the company said. Hitachi will distribute Nanosphere's Verigene molecular diagnostics platform and associated assays in Japan, and in a statement Nanosphere President and CEO Michael McGarrity said, "[W]e jointly believe there is a considerable market and value creation opportunity that will be realized through this collaboration."

Financial and other terms were not disclosed.

Northbrook, Ill.-based Nanosphere said last week that its first-quarter revenues grew 85 percent year over year. It also announced $27 million in new financing, which consisted of a $22 million loan agreement with Oxford Finance and Silicon Valley Bank, and the sale of $5 million of its common stock to William Blair Small Cap Growth Fund through an underwritten registered offering.

In the financing disclosed today, Nanosphere said that it had sold 1,923,077 shares of its common stock at $2.60 per share. Craig-Hallum Capital Group acted as sole book-running manager for the direct offering. Nanosphere said that it would use the proceeds for general corporate purposes and working capital.