Corautus Genetics is raising $18 million through sales of stock to Boston Scientific Corporation and other private investors, the company said Tuesday.
Corautus is also getting access to an additional $5 million in loans from Boston Scientific, which owns some 17 percent of Corautus (Nasdaq: VEGF) stock. The two companies had agreed to set up a loan agreement in 2003.
As part of the deal, Corautus said Boston Scientific would be the exclusive distributor of a gene product for cardiac therapy from Corautus once it is approved by the Food and Drug Administration.
The deals include some 4.7 million Corautus shares at $3.80 per share and provides Corautus with “sufficient cash” for operations and clinical trials through 2006, the company said.