AAA Radius withdraws IPO

Radius withdraws IPO

Radius Health, a developer of drug therapies for osteoporosis and women’s health, has postponed its initial public offering [IPO], citing market conditions. The company had planned to sell 6.5 million shares at between $8.50 and $10.50 per share, and trade on the Nasdaq, as stated in a filing in February. Investment banks UBS and Leerink Swann were to serve as co-lead underwriters. 

Radius Health has raised over $170m in funding from firms including MPM Capital (389.2% pre-IPO stake), The Wellcome Trust (13.4%), HealthCare Ventures (10.7%), BB Biotech Ventures (8.9%), Saints Capital (8.7%), Oxford Bioscience Partners (6.4%), Brookside Capital (5.7%), Nordic Bioscience, Ipsen Pharma and the Scottish Widows Investment Partnership.

Michael Wyzga, chief executive at Radius, said “Due to market conditions and volatility, we have decided to pursue alternative sources of funding for our late-stage anabolic osteoporosis product”.

The proceeds from the IPO were to be used to fund clinical trials for Radius’ most advanced drug candidates, including an injection and a microneedle patch for osteoporosis, and an oral treatment for hot flashes.

Radius posted a net loss of almost $42.5m last year, up from $14.6m the year before.

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