Healthcare Industry News: osteoporosis
News Release - December 16, 2011
Radius Closes $21.4 Million Third and Final Equity Tranche of Previously Announced FinancingCAMBRIDGE, MA--(Healthcare Sales & Marketing Network)- Radius Health, Inc. ("Radius") announced today the closing of the third and final equity tranche of the company's $91 million financing round announced in May 2011. The third tranche included $21.4 million in equity financing from Radius' current investors, bringing gross proceeds received to date from the $91 million financing to $78.7 million. As previously disclosed, Radius has an additional $12.5 million of debt financing available to be drawn until May 2012, subject to certain closing conditions, from GE Capital, Healthcare Financial Services and Oxford Finance LLC under a $25 million multidraw term loan facility.
Radius is allocating the proceeds of the financing primarily to advance the ongoing Phase 3 clinical study of BA058 Injection, the company's novel anabolic (bone-building) drug for the treatment of osteoporosis. Data from the Phase 3 study are intended to form the primary basis for an efficacy claim to support applications for marketing authorization of BA058 Injection in the United States and Europe.
On May 24, 2011, Radius announced that it had closed the first tranche of the financing for gross proceeds of $22 million in equity and $6.25 million in debt, and the issuance of $1.4 million of preferred stock to Ipsen in lieu of a cash milestone payment. On November 23, 2011, the company announced that it had closed the second tranche of the financing, which included $21.4 million in equity financing from existing investors and $6.25 million in debt financing from GE Capital, Healthcare Financial Services and Oxford Finance LLC.
About Radius (www.radiuspharm.com)
Radius is a leading company developing a new generation of drug therapies for osteoporosis and women's health. BA058, Radius' novel, proprietary analog of PTHrP (parathyroid hormone-related protein), is in clinical development as a treatment for osteoporosis in two delivery options: BA058 Injection is a subcutaneous injection form in a Phase 3 clinical study; and the BA058 Microneedle Patch, currently in a Phase 1 study, is a short wear-time, transdermal form based on a microneedle technology from 3M Drug Delivery Systems. The company has a pipeline of additional drug candidate programs in earlier stages of development. Radius is located in Cambridge, Massachusetts.
Safe Harbor for Forward-Looking Statements
Any statements made in this press release relating to future financial or business performance, conditions, plans, prospects, trends, or strategies and other financial and business matters, including without limitation, the use of the proceeds of financings and the availability of debt financing, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, when or if used in this press release, the words "may," "could," "should," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict" and similar expressions and their variants, as they relate to Radius or its management, may identify forward-looking statements. Radius cautions that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Important factors that may cause actual results to differ materially from the results discussed in the forward-looking statements or historical experience include risks and uncertainties, including the failure by Radius to secure and maintain relationships with collaborators; risks relating to clinical trials; risks relating to the commercialization, if any, of Radius' proposed product candidates (such as marketing, regulatory, patent, product liability, supply, competition, and other risks); dependence on the efforts of third parties; dependence on intellectual property; and risks that Radius may lack the financial resources and access to capital to fund our operations. Further information on the factors and risks that could affect Radius' business, financial conditions and results of operations are contained in Radius' filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. The forward-looking statements represent Radius' estimate as of the date hereof only, and Radius specifically disclaims any duty or obligation to update forward-looking statements.
Source: Radius Health
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