Danbury drug developer Biodel Inc. plans to raise at least $19.5 million through a stock offering to raise more cash as it continues to refine its formulation for a fast-acting insulin inhalant for diabetics.
Biodel says it is offering 4,482,760 shares of its common at $4.35 apiece. The offering is set to close Monday. In late morning trading Wednesday, Biodel was down 47 cents, to $4.29.
The company also has provided its underwriter with a 30-day option to buy up to an extra 15 percent of shares to cover any overallotments, which could gross another $2 million for Biodel.
William Blair & Company, L.L.C. is acting as the sole book-running manager of the offering and Ladenburg Thalmann & Co. Inc. is acting as co-underwriter for the offering.
At March 31, Biodel said it had cash and cash equivalents of $28 million, down from $39 million on hand the same date a year ago.
On March 28, Biodel announced signing study of the efficacy of its ultra-fast-acting synthetic insulin for regulating diabetics’ blood sugar.
