Biodel Inc. in Danbury said in an amended Securities and Exchange Commission filing its initial public offering of 5 million shares is expected to be priced between $14 and $16 a share. The startup pharmaceutical company said in February its IPO could be worth up to $86.25 million, but didn”™t list the number of shares or its price range at that time.
The company said it expects to use the offering”™s proceeds to fund clinical development, pre-clinical testing and other research and development activities, and for working capital and general corporate purposes. Most of the money would be used to fund clinical trials of two insulin products.
The company is in Phase 3 clinical trials for an injectable insulin used at mealtime, a market currently dominated by pharmaceutical giant Lilly, and in Phase 1 clinical trials for tablet formulation of insulin that would be placed under the tongue. It is also developing two pre-clinical under-the-tongue products to treat osteoporosis that it expects to submit to the Food and Drug Administration next year.
The company has said in the past it hopes the Phase 3 trials of 800 patients nationwide should be completed late this year, and that the insulin could be on the market by November 2008.
In its amended filing of April 25, Biodel added Morgan Stanley & Co. as a co-lead underwriter alongside Banc of America Securities L.L.C., Leerink Swann & Company Inc. and Natexis Bleichroeder Inc. The underwriters will have an option to buy an additional 750,000 shares to cover overallotments. At an offer price of $15 a share, the company would expect to receive about $68 million.
Biodel raised $21 million in Series B venture capital funding last summer. It has applied for Nasdaq listing under the ticker symbol BIOD.
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