Columbia Labs raises $40 million

New Jersey, USA-based Columbia Laboratories has raised approximately $40.0 million in gross proceeds through an offering of convertible subordinated notes and warrants in a private placement to a group of existing institutional investors. The company previously announced that it had entered into definitive agreements with investors providing for the sale of the notes and warrants.

Columbia used the proceeds to acquire from Serono, on December 22, the marketing rights to Crinone (progesterone gel) for the US market only and to purchase the Swiss firm's current inventory of that product and to pay other costs related to the transaction. The balance of the proceeds will be used for general corporate purposes.

Robert Mills, chief executive of Columbia, said: "we can now expand our infertility business into the reproductive endocrinology market with limited additional cost to Columbia. In addition to revenues from Crinone, we will gain access to key opinion leaders among these specialists who can help us expand our share of the OB/GYN market. This is an important step in Columbia's plan to become a major player in women's reproductive healthcare." He added that the deal also eliminates the 30% royalty paid to Serono on sales of Prochieve (progesterone gel).