Monday, January 28, 2008

MiddleBrook Wins FDA Approval

Congratulations to Ed Rudnic and his team at MiddleBrook! This is from the Washington Post:

Monday, January 28, 2008; Page D02

Just 24 hours after MiddleBrook Pharmaceuticals received approval to market its once-daily amoxicillin treatment for strep throat, the company announced that it would raise $21 million in a private placement of stock.

The Germantown firm took advantage of last week's sharp boost in share prices, which rose 139.2 percent on Thursday following the Food and Drug Administration's approval of Moxatag.

MiddleBrook said it will sell 8.75 million shares at $2.40 a piece, a discount of about 25 percent to Thursday's record closing price of $2.99. The deal also includes five-year warrants to buy 3.5 million shares of common stock at an exercise price of $3 a piece.

Investors in the offering include existing shareholders and new investors.

"We believe the proceeds from this financing will provide sufficient capital to operate our business in 2008 and afford the company greater flexibility and leverage as we seek to complete a strategic transaction over the coming months," Edward M. Rudnic, president and chief executive, said in a written statement.

Amoxicillin has to be taken three or four times a day to be effective. But each Moxatag tablet contains three time-released doses of medicine.

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