MiddleBrook Pharma plunges 50% after $100M investment announcement
MiddleBrook Pharmaceuticals Inc. (Nasdaq:MBRK) tanked 50% in pre-market trading on Wednesday after the company announced late Tuesday it had made an agreement with private investment firm Equity Group Investments for $100 million equity investment in the pharmaceutical company. As part of this agreement, Edward Rudnic will step down from his post as MiddleBrook’s president and CEO. In addition, Executive Vice President and CFO Robert Low will be replaced upon the transaction’s closing.
Proceeds of the investment will go toward the Germantown, Md.-based company’s commercial launch of MOXATAG product in early 2009. MOXATAG is a once-daily amoxicillin product. Shares of MiddleBrook Pharmaceuticals were at $1.57, down $1.50 from Tuesday’s close.
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