AntriaBio raises $7 million to work on insulin

LOUISVILLE – Biopharmaceutical startup AntriaBio Inc. (OTCQB: ANTB) this week announced that it has raised $7 million in a private placement offering of its stock.

For $1.85 per unit, institutions and accredited investors received one share of common stock and one warrant exercisable for three years at $2.50 for one share of common stock.

The company’s stock was trading at $1.35 Tuesday.

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AntriaBio set up shop in a 27,000-square-foot space in Louisville early last year in hopes of resurrecting a basal insulin product that originally was being developed by shuttered Fort Collins-based PR Pharmaceuticals Inc.

AntriaBio’s lead product candidate is AB101, a once-a-week basal insulin for the treatment of Type-1 and Type-2 diabetes. The slow, steady release of insulin that would enable the once-a-week dosage to provide a major change from similar products on the market today that are taken once or twice daily.

The $7 million private placement follows an $11 million private placement last year. Officials said the new funding will be used for general corporate purposes, including building out their facility and initiating the first human clinical studies for AB101.

“The confidence that our investors have shown in us is a testament to our extended release platform and the potential of AB101 to transform the $10 billion basal insulin market,” AntriaBio’s chief executive Nevan Elam said in a statement.

AntriaBio purchased the intellectual property and assets of PR Pharmaceuticals in 2013 after that company filed for Chapter 11 bankruptcy in 2008 and eventually went out of business. AntriaBio made the acquisition for an upfront payment and an obligation to make contingent milestone payments. But in November, AntriaBio cleared a major hurdle by extinguishing the $44 million in contingent milestone payments owed to the bankruptcy estate of PR Pharmaceuticals for $55,000 in a deal approved by the U.S. Bankruptcy Court in Colorado.

The securities sold in the most recent financing have not been registered with the Securities and Exchange Commission, and can’t be offered or sold in the United States without registration or an exemption. But AntriaBio officials said the company has agreed to file a resale registration statement with the SEC within 90 days of the financing closing “for the purpose of registering the resale of the shares of common stock issued or issuable in connection with the financing.”