Tech Dealmaker Awards

2007

24 Tech Dealmakers for 2007

Molecular Insight raises $150M

While Molecular Insight Pharmaceuticals Inc. went through a successful IPO, it knew the funds raised wouldn’t be enough — and it knew where to go to get the funds it needed.

During the company’s recent IPO process, it communicated to investors that it would require upwards of $100 million additional funding beyond what its first public offering would bring. In early November, a group of investors answered that call, helping Molecular Insight to raise a total of $150 million.

The company sold 6,021,247 of common stock in the form of senior secure floating rate bonds, due in 2012. With this new infusion of cash, company financed a grand total of investment in 2007 of close approximately $220 million, following the February closing of its $70 million IPO.

The bonds were issued as warrants to purchase to a syndicate of about 40 individual and institutional investors, including Morgan Stanley & Co., Pequod LLC, Ahab Capital Management, Cerberus Institutional Partners, Highland Credit Opportunities, McDonnell Investment Management and QVT Associates GP LLC.

The warrants represent an 18 percent dilution of common shares. The bonds are redeemable by Molecular Insight, beginning November 16, 2008.

“We anticipate that the proceeds from this significant financing should provide us sufficient capital to fund the company through our first product launch, including expenses related to continued clinical progress on our robust pipeline of molecular imaging and targeted molecular radiotherapeutic candidates,” said Molecular Insight’s CEO David Barlow.

— Stephen Desantis is a freelance writer in Roxbury.

The Deal

Molecular Insight Pharmaceuticals held a pre-IPO $150 million bond financing. Closed on Nov. 16th, 2007.

Key Executives

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

Deal advisers

Legal: Foley & Lardner LLP.
Financial: The Bank of New York Trust 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