UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
AMENDMENT NO. 2 TO
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Q-MED, INC.
-----------
(Name of Issuer)
COMMON STOCK, $.001 PAR VALUE PER SHARE
---------------------------------------
(Title of Class of Securities)
74791410
---------------------
(CUSIP Number)
Bruce F. Wesson
Senior Managing Member
Claudius, L.L.C.
610 Fifth Avenue, 5th Floor
New York, NY 10020
(212) 218-4990
--------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
MAY 17, 1999
-------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule
13G to report the acquisition which is the subject of this
Schedule 13D, and is filing this Schedule because of Rule 13d-
1(b)(3) or (4), check the following box [ ].
Note: Six copies of this statement, including all exhibits,
should be filed with the Commission. See Rule 13d-1(a) for other
parties to whom copies are to be sent.
The information required on the remainder of this cover page
shall not be deemed to be "filed" for the purpose of Section 18
of the Securities Exchange Act of 1934, as amended (the "Act") or
otherwise subject to the liabilities of that section of the Act
but shall be subject to all provisions of the Act (however, see
the Notes).
Page 1 of 14 Pages
<PAGE>
The initial Schedule 13D pertaining to the Common Stock of Q-Med,
Inc., a Delaware corporation, filed with the Securities and Exchange
Commission ("SEC") on March 30, 1998 for an event on March 18, 1998
as amended by Amendment No. 1 filed with the SEC on November 25,
1998 for an event on November 17, 1998 (collectively, the "Schedule
13D") is hereby amended to read in their entirety as follows:
SCHEDULE 13D
CUSIP NO. 74791410 PAGE 2 OF 14 PAGES
------------- --- ----
-------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners III, L.P.
-------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
-------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(E) [ ]
-------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
2,209,228 (see Item 5(a))
SHARES -----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
2,209,228
REPORTING -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
-------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,209,228
-------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.3%
-------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
-------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 74791410 PAGE 3 OF 14 PAGES
------------- --- ----
-------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners International III, L.P.
-------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
-------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(E) [ ]
-------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
199,975 (see Item 5(a))
SHARES -----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
199,975
REPORTING -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
-------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
199,975
-------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.6%
-------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
-------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 74791410 PAGE 4 OF 14 PAGES
------------- --- ----
-------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Employee Fund III, L.P.
-------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
-------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(E) [ ]
-------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
9,046 (see Item 5(a))
SHARES -----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
9,046
REPORTING -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
-------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,046
-------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.07%
------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
-------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 74791410 PAGE 5 OF 14 PAGES
------------- --- ----
-------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
William R. Grant
-------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
-------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(E) [ ]
-------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
-------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
13,334 (see Item 5(a))
SHARES -----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
13,334
REPORTING -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
13,334
-------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%
-------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
-------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 74791410 PAGE 6 OF 14 PAGES
------------- --- ----
-------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Bruce F. Wesson
-------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
-------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(E) [ ]
-------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
-------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
38,333 (see Item 5(a))
SHARES -----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
38,333
REPORTING -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
-------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
38,333
-------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.3%
-------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
-------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 74791410 PAGE 7 OF 14 PAGES
------------- --- ----
-------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
L. John Wilkerson
-------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
-------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(E) [ ]
-------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
-------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
38,333 (see Item 5(a))
SHARES -----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
38,333
REPORTING -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
-------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
38,333
-------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.3%
-------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 74791410 PAGE 8 OF 14 PAGES
------------- --- ----
-------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Srini Conjeevaram
-------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
-------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(E) [ ]
-------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
India (see Item 2)
-------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
9,000 (see Item 5(a))
SHARES -----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
9,000
REPORTING -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
-------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,000
-------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.07%
-------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
-------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP NO. 74791410 PAGE 9 OF 14 PAGES
------------- --- ----
-------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
David Jahns
-------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
-------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(E) [ ]
-------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
-------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
9,000 (see Item 5(a))
SHARES -----------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
9,000
REPORTING -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
-------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,000
-------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.07%
-------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
-------------------------------------------------------------------
<PAGE>
ITEM 1. SECURITY AND ISSUER.
The first paragraph of Item 1 of the Schedule 13D
is hereby amended to read in its entirety as follows:
This statement covers a total of 2,526,249 fully diluted
shares of Common Stock, $.001 par value per share (the "Common
Stock"), of Q-Med, Inc., a Delaware corporation (the "Issuer").
The Reporting Persons (as defined in Item 2 hereof) as of the
date hereof hold an aggregate of (i) 1,315,363 shares of Common
Stock (the "Common Shares"), (ii) $950,000 principal amount of
Convertible Notes of the Issuer (the "Notes"), which as of
the date hereof are convertible into an aggregate of 257,627
shares of Common Stock, and (iii) warrants for the purchase of
953,259 shares of Common Stock (the "Warrants"), which as of the
date hereof may be exercised for an aggregate of 953,259 shares
of Common Stock. The Common Shares, Notes and Warrants are
referred to herein, collectively, as the "Securities".
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Item 3 of the Initial Schedule 13D is hereby amended by
adding a paragraph to the end thereof to read as follows:
Additional Warrants were granted to the Partnership Reporting
Persons as consideration for the cancellation of certain redemption
rights held by them relating to the Common Shares. The additional
warrants are exercisable in part at $1.67 per share, and in part at
$2.87 per share.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5, subpart (a) of the Schedule 13D is hereby
amended to read in its entirety as follows:
-10-
<PAGE>
(a) Each Reporting Person owns or has the right to acquire
the number of securities shown opposite its name:
=======================================================================
(1) (2) (3) (4) (5) (6)
Number
of
Shares
of
Common
Stock
which
Number of may be
Shares of acquired Percentage of
Number of Common pursuant Outstanding
Shares of Stock into to Total of Shares of
Common which Owned exercise Columns Common Stock
Reporting Stock Notes are of Owned (2), (3) (see Note
Person Owned Convertible Warrants and (4) below)
-----------------------------------------------------------------------
Galen 1,201,670 235,359 772,199 2,209,228 17.3%
-----------------------------------------------------------------------
Galen Intl 108,746 21,304 69,899 199,975 1.6%
-----------------------------------------------------------------------
GEF 4,921 964 3,161 9,046 0.07%
-----------------------------------------------------------------------
Grant 0 0 13,334 13,334 0.1%
-----------------------------------------------------------------------
Wesson 0 0 38,333 38,333 0.3%
-----------------------------------------------------------------------
Wilkerson 0 0 38,333 38,333 0.3%
-----------------------------------------------------------------------
Conjeevaram 0 0 9,000 9,000 0.07%
-----------------------------------------------------------------------
Jahns 0 0 9,000 9,000 0.07%
-----------------------------------------------------------------------
Total 1,315,363 257,627 953,259 2,526,249 19.8%
=======================================================================
Note: The percentages shown in each row of column (6) were
calculated, for each respective row, by (i) adding the totals in
the bottom row of columns (3) and (4) to 11,590,989 (the number
of shares of Common Stock outstanding as of February 28, 1999,
such number having been provided by the Issuer to the Reporting
Persons) (the "Total Adjusted Outstanding Shares"), then (ii)
dividing the amount in column (5) by the Total Adjusted
Outstanding Shares, and then (iii) expressing such quotient in
terms of a percentage.
-11-
<PAGE>
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in the statement
is true, complete and correct.
Date: May 24, 1999 GALEN PARTNERS III, L.P.
By: Claudius, L.L.C.
By: /s/ Bruce F. Wesson
-----------------------------
Senior Managing Member
GALEN PARTNERS
INTERNATIONAL III, L.P.
By: Claudius, L.L.C.
By: /s/ Bruce F. Wesson
-----------------------------
Senior Managing Member
GALEN EMPLOYEE FUND III, L.P.
By: Wesson Enterprises, Inc.
By: /s/ Bruce F. Wesson
-----------------------------
President
[Signatures continued on next page.]
-12-
<PAGE>
WILLIAM R. GRANT
By: /s/ Bruce F. Wesson
------------------------------
Bruce F. Wesson
Attorney-in-Fact
L. JOHN WILKERSON
By: /s/ Bruce F. Wesson
------------------------------
Bruce F. Wesson
Attorney-in-Fact
DAVID JAHNS
By: /s/ Bruce F. Wesson
------------------------------
Bruce F. Wesson
Attorney-in-Fact
SRINI CONJEEVARAM
By: /s/ Bruce F. Wesson
------------------------------
Bruce F. Wesson
Attorney-in-Fact
[Signatures continued on next page.]
-13-
<PAGE>
CLAUDIUS, L.L.C.
By: /s/ Bruce F. Wesson
------------------------------
Senior Managing Member
WESSON ENTERPRISES, INC.
By: /s/ Bruce F. Wesson
------------------------------
President
-14-
