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BioDelivery Sciences International Prices Private Placement of $15m
GlobalData, March 2011, Pages: 6
BioDelivery Sciences International Prices Private Placement of $15m - Deal Analysis from GlobalData
Summary
The drug discovery process has become more complex, time consuming and quite expensive leading to big rise in R&D budgets of research based pharmaceutical companies. Most of the midsized research based companies are now significantly dependent on collaborative agreements for the development, manufacturing and sales of their products and product candidates. To boost its R&D activities BioDelivery Sciences International (BDSI) has raised $15m from selling its 4.8m shares to private placement financing. BDSI spent around $10.6m in R&D activities in 2010, which was nearly 56% of the total operating expense for the fiscal year.
BDSI posted a net loss of $13m for 2010. Revenues fell by $3.4m in 2010 from $62.8m in 2009. Total expense was $18.9m, down from $20.6m in 2009. Since incorporation in January 1997, BDSI has reported cumulative losses of nearly $72.2m which is primarily attributed to extensive research and development activities of the company.
The company intends to use the amount received from the sale of an asset to progress the clinical development of its pipeline products, especially BEMA Buprenorphine and BEMA Buprenorphine/ Naloxone meant for the treatment of chronic pain. Also the financing will help BDSI to strengthen the balance sheet and the company would be in a stronger position to negotiate well in partnering discussions involving BEMA buprenorphine. Above all, the company is anticipating a partnership deal for BEMA buprenorphine by the end of 2011 which is expected to bring at least $30m.
Scope
Details of the deal included -
- The Financing
- Potential Milestones-2011and 2012
- Robust pipeline – An opportunity for significant growth
- Partnering Opportunity
- Possible Reasons to Raise Funds and its Implications
Reasons to buy
- Identify key M&A trends in the pharmaceutical market
- Track competitor product portfolios and acquisition history
- Assess future outlook of the company
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