Insulet Corp. (NSDQ:PODD) has two offerings coming down the pike.
On the heels of its $63 million acquisition of Neighborhood Diabetes Inc., Insulet announced plans to offer $110 million principal amount of convertible senior notes due 2016, pursuant to SEC approval.
The Bedford, Mass.-based company will offer its underwriters an option to purchase up to another $16.5 million principal in notes to cover over-allotments.
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MassDevice Staff Website The Massachusetts Medical Devices Journal is the online journal of the medical devices industry in the Commonwealth and New England, providing day-to-day coverage of the devices that save lives, the people behind them, and the burgeoning trends and developments within the industry.
Interest rates on the notes have not yet been defined.
In addition, company stockholders who received about 1.2 million shares of Insulet stock in connection with the acquisition of Neighborhood Diabetes intend to offer more than 1.1 million of them for sale.
The maximum value of the stockholder sale is expected to be about $23 million, with a maximum share price of $19.28, according to SEC filings.
Insulet share price came in at $20.49 in after hours trading on June 22.
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A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
The company plans to use the proceeds from its offering for general corporate purposes, including possible repurchase of debt securities, according to the release.
The Massachusetts Medical Devices Journal is the online journal of the medical devices industry in the Commonwealth and New England, providing day-to-day coverage of the devices that save lives, the people behind them, and the burgeoning trends and developments within the industry.
