Tech Dealmaker Awards

As with most small biotechs, access to additional capital is essential in taking products through the long and expensive rigors of drug development. With two exciting therapeutic candidates in its growing pipeline, Molecular Insight Pharmaceuticals Inc. looked to the public markets for aid.

While Cambridge-based Molecular Insight announced its plans to list the company on the Nasdaq back in late 2005, the company didn’t price its offering of 5 million shares at $14 per share until Feb. 2, 2007. It raised a healthy $70 million. Without either of its lead drugs — radiotherapeutic metastatic cancer drug Azedra and molecular imaging product Zemiva — in U.S. pivotal trials, it was quite a feat.

“Staying within SEC guidelines, we did presentations to potential investors well before the traditional 90-day meeting road show. That really enabled us to achieve the kind of size and price we were looking at,” said CEO David Barlow.

Molecular Insight is using a portion of its funding to in-license two compounds from large pharmas. Onalta, another cancer product similar to Azedra, was in-licensed from Novartis. Solazed, a treatment for metastatic melanoma was in-licensed from Schering.

During IPO process, the company told investors it would require upward of $100 million in additional funding. In Early November, a group of institutional investors answered that call, helping Molecular Insight to raise a total of $150 million. That brings the grand total of investment in 2007 to close approximately $220 million.

— Stephen Desantis is a freelance writer in Roxbury.

Category

Initial Public Offering

The Deal

Molecular Insight Pharmaceuticals held a long-delayed IPO, raising $70 million. Company was public as of Feb. 2, 2007.

Key Executives

David Barlow, CEO; John W. Babich, co-founder, president and chief scientific officer.

Deal advisers

Legal: Foley & Lardner LLP; Willkie Farr & Gallagher LLP. Accounting: Deloitte & Touche LLP.
Financial: RBC Capital Markets; Jefferies & Co.; A.G. Edwards; Oppenheimer & Co.

• Platinum Sponsor:
• Gold Sponsors: Capital Source
  Silicon Valley Bank
  TM Capital
  Vitale, Caturano & Co.
• Silver Sponsors: Capital IQ
  Citizens Bank
• Supporting Sponsors: Mass High Tech
  Preston Productions
  Trinity Communications

Become a Sponsor »