Radius Health, Inc., a Cambridge, Massachusetts-based developer of drug therapies for osteoporosis and women’s health, has raised approximately $91m in its third financing round.
It includes:
– $66m in equity financing from new investors BB Biotech AG, Brookside Capital, Saints Capital, Nordic Bioscience, and Ipsen Pharma SAS, which joined existing investors MPM Capital, BB Biotech Ventures, MPM Bio IV NVS Strategic Fund, The Wellcome Trust, HealthCare Ventures, and Scottish Widows Investment Partnership.
– $25m multi-draw term loan facility by GE Capital, Healthcare Financial Services and Oxford Finance LLC.
The company intends to use the proceeds to fund Phase 3 clinical development of the subcutaneous injection form of BA058, its novel, proprietary PTHrP (parathyroid hormone-related protein) analog, for the treatment of osteoporosis. In connection with the financing, Radius completed a services agreement with Nordic whereby Nordic will manage the pivotal Phase 3 clinical trial of BA058 Injection.
Led by C. Richard Lyttle, PhD, President and CEO, Radius merged with MPM Acquisition Corp., an unlisted public reporting shell company. The new company, which will be renamed Radius Health, Inc., plans to apply for a listing on a national securities exchange upon satisfaction of criteria for an initial listing on the exchange.
In conjunction with the financing and the combination with MAC, Martin Muenchbach, PhD, Managing Director of BB Biotech Ventures, joined Radius’ Board of Directors, along with:
– Alan Auerbach, Founder, President, and CEO of Puma Biotechnology;
– Kurt Graves, former Executive Vice President and Chief Commercial Officer of Vertex Pharmaceuticals; and
– Elizabeth Stoner, MD, a Managing Director of MPM Capital.
At the initial closing of the financing, Radius received gross proceeds of $22m in equity and $6.25m in debt. $1.4m of preferred stock was issued to Ipsen in connection with a cash milestone payment. The company will receive the balance of funds in two subsequent tranches upon written request to its investors and lenders.
FinSMEs
25/05/2011