Radius Health, a US-based developer of drug therapies for osteoporosis and women’s health, plans to sell 6.5 million shares at between $8.50 and $10.50 each in its Nasdaq stock exchange flotation. Investment banks UBS and Leerink Swann are co-lead underwriters of Radius’ initial public offering (IPO) that will give the company a $283m market capitalisation at $9.50 per share. Radius Health has raised more than $170m from its venture backers and its shareholders include drugs company Ipsen Pharma. Radius initially filed for its IPO in February, which was less than two months after closing a $91m series D round. The major institutional shareholders in Radius are private equity firm MPM Capital (which holds 39.2% of Radius’ shares), medical foundation the Wellcome Trust (13.4%), venture capital firms Healthcare Ventures (10.7%), Saints Capital (8.7%), Oxford Bioscience Partners (6.4%), investment firm BB Biotech (8.9%), Biotech Growth (5.7%) and Brookside Capital Partners (5.7%), a fund affiliated with private equity firm Bain Capital. Radius also issued shares to Ipsen in return for services, and gained money from Nordic Bioscience in its series C round, while asset manager Scottish Widows Investment Partnership invested in both the series B and C rounds, but neither appear to be shareholders in Radius. GE Healthcare Financial Services, GE’s healthcare-oriented corporate venturing fund, extended $12.5m to Radius last year, along with Oxford Finance, but as a debt facility. The proceeds from the IPO will 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. The cash from any drugs that gain Food and Drug Administration approval could potentially bring in much needed revenues. Without income from its products, Radius posted a net loss of almost $42.5m last year, up from $14.6m the year before.

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