Biodel to net $9.4M from stock offering

Biodel Inc., a diabetes-focused therapeutics firm in Danbury, Conn., has announced a registered direct offering of almost 2.4 million shares of common stock and warrants to buy the same number of shares.

The offering was made to two institutional investors, according to a Biodel news release, and brings about $9.4 million to the company. The deal, expected to close around August 30, called for a cost of $3.93 per unit, with each unit consisting of one common stock share and a warrant to buy one share.

The offering’s co-lead placement agents included Leerink Swann LLC, Wedbush PacGrow Life Sciences and William Blair & Company LLC.

Founded in 2003 by current chief scientific officer Solomon Steiner, Biodel shuffled its executive leadership in March when it appointed Errol De Souza as president and CEO [1] and Charles Sanders as board chairman. The new appointments are intended to help push Biodel to a commercial stage company.

In December, Biodel submitted a new drug application [2] to the U.S. Food and Drug Administration, requesting clearance to market a formulation of recombinant human insulin as a treatment for diabetes.

SOURCE [3]