MiddleBrook lands $21 million

Monday, Jan. 28, 2008

MiddleBrook lands $21 million

Cash infusion follows FDA approval of strep throat drug

by Steve Berberich | Staff Writer

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Fresh off federal approval of its lead drug candidate last week, MiddleBrook Pharmaceuticals has announced raising $21 million in a private placement.

The Germantown biotech has entered into purchase agreements with institutional investors for 8.75 million shares of common stock, plus five-year warrants to purchase 3.5 million shares.

On Thursday, MiddleBrook executives announced that the Food and Drug Administration had approved Moxatag, its once-daily amoxicillin treatment for strep throat in adults and adolescents. MiddleBrook will continue working with the FDA for approval for children younger than 12. After failing to meet FDA marks for final approval nearly two years ago, the company redesigned the drug test and focused on gaining approval first for adults and adolescents.

The two announcements spurred the company’s shares to jump from $1.25 early Thursday to more than $3 Monday.

‘‘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 CEO, said in a statement.