Radius Closes $27.65 Million Second Tranche of Previously Announced Financing
CAMBRIDGE, Mass. , Nov. 23, 2011 /PRNewswire/ -- Radius Health, Inc. ("Radius") announced today the closing of the second of the company's three-tranche $91 million financing round announced in May 2011 . The $27.65 million second tranche included $21.4 million in equity financing from Radius' current investors and $6.25 million in debt financing from GE Capital, Healthcare Financial Services and Oxford Finance LLC, bringing gross proceeds received to date from the $91 million financing to $57.3 million . As previously disclosed, Radius receives the second and third tranches of the equity financing round upon written request to the company's investors.
Radius will use the proceeds from the second tranche primarily to continue advancing 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 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 .
"With the additional funding, we will continue our company strategy of moving quickly to execute on the pivotal Phase 3 study of BA058 Injection and prepare for initiation of Phase 2 for the transdermal BA058 Microneedle Patch," said Nick Harvey , Chief Financial Officer of Radius. "Our goal is to provide a new treatment option for patients with osteoporosis that builds new bone, reduces risk of future fractures, improves convenience, and optimizes patient outcomes."
BA058 is Radius' novel analog of hPTHrP (human parathyroid hormone-related protein) in development by Radius in both subcutaneous injection and transdermal delivery forms as a treatment for osteoporosis. In Phase 1 and 2 studies, BA058 Injection has demonstrated the potential to widen the anabolic window for osteoporosis therapy by stimulating bone formation with limited effect on bone resorption and greatly reduced risk of hypercalcemia. In the Phase 2 study, BA058 achieved greater and faster gains in bone mineral density (BMD) at critical fracture sites compared to Forteo®, with a lower incidence of hypercalcemia. In addition, BA058 Injection has demonstrated long-term stability in use at room temperature, an important convenience advantage for patients that would eliminate the refrigeration requirement of daily-injected Forteo. The BA058 Microneedle Patch-the transdermal form of BA058 under development by Radius in collaboration with 3M Drug Delivery Systems-is currently undergoing Phase 1 clinical trials. Radius acquired exclusive worldwide rights (excluding Japan ) to develop, manufacture, and distribute BA058 and its analogs from Ipsen in 2005.
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 Phase 3 clinical study; and the BA058 Microneedle Patch, currently in Phase 1 study, is a short wear-time, transdermal form based on a microneedle technology from 3M Drug Delivery Systems that is intended to promote improved patient compliance and drive an expansion of the osteoporosis market. 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 proceeds from the financing and the development of Radius' products, 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.