4. Biodel (BIOD) develops and commercializes a line of therapies for diabetes. The company develops its product candidates by applying its formulation technologies to existing drugs.
During the second quarter of 2011, net loss narrowed to $5.4 million or 21 cents per share, from $10.4 million or 44 cents per share in the year-ago quarter. Cash and cash equivalents stood at $17.6 million, as on March 31, 2011. Research and development expenses declined 58.6% to $2.9 million, while general and administrative expenses decreased 32.3% to $2.3 million from the prior-year period.
Recently, Biodel announced to raise $30 million through a private stock placement. Ayer Capital Management, a California-based firm, disclosed buying 6.39% stake in Biodel. Besides, Biodel has entered into a definitive agreement with a group of institutional investors to sell 12.2 million shares of its common stock, 1.7 million shares of its Series A convertible preferred stock and warrants to purchase 9.0 million shares of its common stock at a negotiated price of $2.16 per unit.Of the six analysts covering the stock, 33% recommend a buy and the remaining rate a hold. There are no sell ratings on the stock. On average, analysts estimate 177.8% upside to $4.17 in value from current levels.