Shares of the North Carolina-based biotechnology company BioDelivery Sciences International (NASDAQ:BDSI) jumped after the company announced that they had entered an agreement with Broadfin Capital LLC (private).
The agreement is meant to help BioDelivery Sciences strengthen its financial position. As a result of the agreement, Kevin Kotler, a managing partner at Broadfin Capital, will be joining the BioDelivery Sciences Board of Directors.
Todd Davis, the former Founder, Managing Partner and President of RoyaltyRx Capital and Peter Greenleaf, the current CEO of Cerecor (NASDAQ:CERC) were also chosen by Broadfin Capital to join the Board of Directors.
Thomas D’Alonzo, Barry Feinberg, Samuel Sears and Timothy Tyson will voluntarily retire from the BioDelivery Sciences Board of Directors as a result of the deal.
The company’s Chairman of the Board, Frank O’Donnell, and the Vice Chairman of the Board, Mark Sirgo will remain in their current positions.
According to Frank E. O’Donnell, Jr., a Chairman on the BioDelivery Sciences Board of Directors, the company believes that the “agreement with Broadfin, [BioDelivery Sciences] equity financing and the loan amendment with CRG validate [their] overall strategy and will support [BioDelivery Sciences] as [they] seek to drive sales of [their] products.”
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O’Donnell also states that the company is looking forward to the addition of Davis and Greenleaf to the Board of Directors.
Kevin Kotler has also stated that “Broadfin is pleased to reach this agreement with [BioDelivery Sciences] that strengthens the company’s balance sheet and reconstitutes the board through the addition of three highly-qualified independent directors, each of whom will support [BioDelivery Sciences’] positive commercial and strategic growth.”
After the announcement was made on Thursday, the share value of BioDelivery Sciences went up over 15%. The company has reached a high share value of $2.30 and a low of $2.08, as of 3:20 pm EDT.
Comparatively, the BioDelivery Sciences closed at a share value of $1.95 on Wednesday.
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