Osteoporosis drug developer Radius Health braves chilly IPO market

Posted under BA058, Biotech IPO, Biotech Venture Capital, Blog, Cempra Pharmaceuticals, Companies, Diagnostics, Funding, Ipsen, Medical Devices, Medical Supply, Merrimack Pharmaceuticals, osteoporosis, Pharmaceuticals, Radius Health, Startups, Universities, Verastem, Videos by John Carroll

After burning through more than $122 million, the late-stage osteoporosis drug developer Radius Health is filing to go public in the hope of raising up to $86 million. Radius is betting that it can whet the appetite of investors with the prospects for its pivotal trial for BA058. But over the past three years investors have been quick to pass on such offerings, put off by the heavy risk of failure that dogs every drug program.

Radius Health in-licensed BA058 from Ipsen and has been studying the treatment's ability to build bones in osteoporosis patients. As FierceBiotech noted in December, when the Cambridge, MA-based biotech drew down another tranche of its last $91 million venture round, Radius believes that it can significantly improve on current treatments, which are designed to slow bone loss and reduce pain in patients. Radius is also partnered with Eisai on a midstage treatment for hot flashes without the side effects associated with hormone therapy.

Radius, which is helmed by former Genzyme CFO Michael Wyzga, plans to list on Nasdaq under the RDUS symbol. The biotech did not list the number of shares it plans to offer or a price range.

Biotech IPOs have generally received rough handling on Wall Street. With the help of its backers, Christoph Westphal pulled off a successful initial offering for Verastem ($VSTM) recently. But Cempra's experience last week is more common. The company had to cut its share price in half and boost the number of shares sold to raise $50 million. Merrimack, a Boston biotech with five programs, recently pulled its IPO, citing market conditions.

A successful IPO here would be a coup for Radius' investors: MPM Capital, BB Biotech Ventures, MPM Bio IV NVS Strategic Fund, The Wellcome Trust, HealthCare Ventures and Scottish Widows Investment Partnership.

- here's the S-1 form on file at the SEC
- read the story from the Boston Business Journal

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Radius Health pulls in $21.4M more for Phase III bone drug

Posted under Blog, Companies, Diagnostics, Funding, Medical Devices, Medical Supply, osteoporosis, Pharmaceuticals, Radius Health, Startups, Universities, Videos by Ryan McBride

Investors plowed another big chunk of capital into startup Radius Health as the company funds an ongoing pivotal study for its bone-building drug for osteoporosis, a bone-thinning ailment that effects an estimated 1 in 5 women in the U.S. Cambridge, MA-based Radius said the $21.4 million in new equity brings the company's $91 million financing round initially announced in May to $78.7 million.

Radius reported Friday that this is the third and last tranche of the equity money in the financing, and the company still has $12.5 million in debt financing that it can draw down until May under a loan deal with GE Capital, Healthcare Financial Services and Oxford Finance. The latest influx of equity capital came from Radius' existing backers, which include MPM Capital, BB Biotech Ventures, MPM Bio IV NVS Strategic Fund, The Wellcome Trust, HealthCare Ventures and Scottish Widows Investment Partnership.

Radius' bone-building drug BA058 is its most advanced product candidate and its best shot right now at getting an FDA approved product. While existing treatments aim to curb bone loss from the disease or treat the pain associated with it, BA058 (a biologic drug in-licensed from Ipsen) offers a potential bone-building treatment that could be a new option for the common illness. The company also has a deal with Eisai for ex-Japan rights to a new class of selective estrogen receptor modulators (SERM), and its most advanced drug from this class, RAD1901, is in a Phase II trial for treating hot flashes without the side effects of hormone treatments, according to the company's website.

- here's Radius' release

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