ARTICLE | Finance

MPM shells out for Radius

Radius Health raises up to $91M; reverse merges into MPM shell to avoid IPO

May 30, 2011 7:00 AM UTC

Rather than run the risk of trying to raise money on uncertain terms in an IPO, Radius Health Inc. is raising $91 million in debt and equity and reverse merging into an unlisted public shell company.

"We have a large Phase III trial ongoing; we liked the certainty of getting the financing done. Think of it as a PIPE in an unlisted company," CFO Nick Harvey told Ebb & Flow. "If we had gone with an IPO, it would have been uncertain until the last minute what the terms would be."...