Firm is developing new formulations of existing drugs to treat diabetes.
Biodel expects to secure approximately $9.4 million, before deducting placement agents’ fees and estimated offering expenses, through a registered direct offering with two institutional investors. Biodel is focused on the development and commercialization of treatments for diabetes by applying its formulation technologies to existing drugs in order to improve their therapeutic profiles.
Its lead candidate is VIAject®, a more-rapid-acting injectable human insulin under development for meal-time use by people with type 1 or type 2 diabetes to improve glycemic control. Next in development is VIAtab™, an oral sublingual insulin tablet designed to dissolve in minutes when placed under the tongue. It is in Phase I trials for use as an insulin supplement for early-stage type 2 diabetics by mimicking first-phase insulin-release signaling, reducing the production of glucose by the liver, and maintaining normal glucose levels.
Under the terms of the registered direct offering, the investors have agreed to purchase each unit for $3.93, with each unit consisting of one share of common stock and a warrant to purchase one share of common stock. In total Biodel will sell 2,398,200 shares of its common stock and warrants to purchase 2,398,200 shares of its common stock.
The initial per-share exercise price of the warrants is $4.716. On the 21st trading day following the PDUFA date relating to Biodel’s NDA for VIAject, the exercise price will be adjusted to 90% of the arithmetic average of the volume-weighted average price of Biodel’s common stock on each of the 10 trading days prior to the 21st day following the PDUFA date. In no event will the exercise price be greater than the initial per-share exercise price of the warrants. The warrants will be exercisable beginning on the original date of issuance and will expire on the date that is 12 months after the 21st day following the PDUFA date. Biodel expects the PDUFA date to be October 30.