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Radius Health gets $29.65mm so far in Series A-1 round; adds on later

Executive Summary

Radius Health Inc. (osteoporosis and women’s health therapeutics) brought in $29.65mm in the first tranche of a potential $64.3mm Series A-1 financing (what the company terms its “third institutional financing”). The $22mm in convertible preferred stock (2.6mm shares convertible on a 1-for-10 basis at $8.142) was sold to new investors BB Biotech AG, Brookside Capital, Saints Capital, Nordic Bioscience AS, and Ipsen, plus current shareholders MPM Capital, BB Biotech Ventures, MPM Bio IV NVS Strategic Fund, the Wellcome Trust, HealthCare Ventures, and Scottish Widows Investment Partnership. (BB Biotech Ventures and MPM Capital will each contribute a board member and two other senior pharma executives will also come aboard.) The first tranche also included $6.25mm in debt and $1.4mm of preferred stock (issued to Ipsen in place of a cash milestone payment due under their 2005 alliance). The remainder of the funds will be received in two subsequent tranches--through the sale of 526k additional shares--expected to close in 2011. The money will be used for Phase III trials of Radius’ BA058 for osteoporosis. Leerink Swann was the placement agent. Radius has also received a $25mm commitment for a multidraw term loan facility from GE Capital, Healthcare Financial Services, and Oxford Finance. Immediately following the venture round, Radius signed a service agreement under which Nordic Bioscience will manage Phase III trials of BA058, and Radius merged with MPM Acquisition Corp., an unlisted public reporting shell company. The surviving company is named Radius Health Inc. and will now file with the SEC.
Deal Industry
  • Biotechnology
Deal Status
  • Final
Deal Type
  • Financing
    • Convertible Debt
    • Venture Financing

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