BioDelivery Sciences lines up stock-offering option - Triangle Business Journal:

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Securities filings show the company has filedf a shelf registration for the sale of upto $50 milliohn in BDSI stock. CEO Mark Sirgl says the company is well funderd and does not plan at this point to issue the new shares but might do so when the marketg improves and if the cash is It makes little sense to go out and sell shareesat $3 a share when the pricinbg is expected to be improved,” Sirgo says of the company’xs stock, which is selling a littlre above $3 a shar on the Nasdaq stoclk market.
BDSI’s filing says the Raleig company would use proceeds from a prospective fundraiserfor “general corporate purposes, includingt the advancement of our product language typical of such filings. BDSI’s lead product, is a small patch that deliversxthe pain-killing drug fentanyl. Unlikee already available fentanylskin patches, Onsolis is placed on the insidde of the cheek, delivering the drug to the bloodstreamm faster. Onsolis is intended for cancer patients whoexperience “breakthrough pain” beyond what other drugs can manage. BDSI has been fundinhg its operations mostly from milestoned payments from drug developmentpartner Meda.
The Swedish pharmaceuticap company has distribution rights for Onsolis in theUnited Canada, Mexico and Europe. BDSI is due a $30 milliohn payment from Meda upon approval of Onsolis. Earlier this month, BDSI received $6 million in additionalp financingfrom Meda. The deal calls for Meda to pay $3 millionj for the worldwide rights to distributee Onsolis in every countrgy except Taiwan and South The deal also calls for Meda toadvancw $3 million of the $30 million milestone payment due upon approvakl of Onsolis. Sirgo says the financingh will be applied to regulatory work associated with Onsolies as well asother products.
BDSI is also developingt an antifungal treatment that can be administered He says phase I clinical trial resultx forthat product, Bioral Amphotericin B, should be availabl e by early March. Shelf registrations are common amongtpublic companies. Chris Matton, a securitieds lawyer with in Raleigh, says the filingw allow companies to have theire plans blessed by the so that when the companyhis ready, it can go ahead and seek to raisse money by issuing new securities.