Medidata Solutions is scheduled to close on a $287.5 million notes offering Monday, giving the company a surplus of money in the bank to finance potential acquisitions and other business activities. And the major financing should more than double the company's reserves.
New York-based Medidata ($MDSO), the world's second-largest seller of clinical trials software last year, is offering $250 million in 1% convertible senior notes due in 2018, and the underwriters took their full overallotment option to sell an additional $37.5 million in notes. The financing builds on the company's total cash, which stood at $140.4 million at the end of the second quarter.
The company is capitalizing on confidence in its business of providing web-based and locally managed software for many aspects of pharmaceutical clinical development. The company's stock price has more than doubled year to date, and it's on pace to eclipse Oracle ($ORCL) as the largest provider of clinical trials software in the world, according to data from IDC Health Insights.
Medidata said that it has no plans to acquire any companies, and President Glen de Vries has previously told FierceBiotechIT that the company seeks to develop new software internally whenever possible. The company has pushed for buccaneering use of cloud computing in clinical trials and spent $12.1 million or 18% of revenue in the second quarter on research and development.
- here's the release