MiniMed, Chairman to Sell 2.25 Million Shares

Sylmar-based MiniMed Inc. and its chairman, Alfred E. Mann, have registered with the Securities and Exchange Commission to sell 2.25 million common shares. The move would raise $140 million for the company and about $17.5 million for Mann.

The biomed company, which makes devices designed to control insulin, will offer 2 million of the shares. Mann, the chief executive officer, will sell 250,000 of his shares, bringing his stake in the company he founded to about 9 million shares, including options.

The number of shares outstanding after the sale would increase to 30.38 million. MiniMed closed Monday at $70.13.

Much of the money raised in the sale, which is expected to begin this summer, will be used in connection with a deal the company announced Monday with Elan Corp., an Ireland-based pharmaceutical company. MiniMed will use Elan’s Medipad, a patch-like device, to deliver insulin to patients with Type 2 diabetes.

MiniMed will pay Elan licensing fees and will build a factory to manufacture the patch device, a MiniMed official said.

Proceeds from the sale also will be used to acquire equipment for the company’s continuous glucose monitoring system, and for furnishings and equipment at the new headquarters the company is building on the campus of Cal State Northridge.