The insulin patch pump maker company entered the agreements with institutional and accredited investors for a private placement. It consists of the sale of units comprised of two shares of common stock with one warrant to purchase one share of common stock. The San Diego-based company priced the units at $1.92 apiece and expects the placement to close on or about March 25.
Modular Medical plans to use the proceeds for supply chain optimization and margin improvement on its MODD1 product. The company is preparing for broad commercial availability and has work underway on a submission to the FDA for a tubeless version of the product. It currently expects to make the submission in the third quarter of this year, along with work toward obtaining CE mark.
The MODD1 product, a 90-day patch pump, features new microfluidics technology to allow for the low-cost pumping of insulin. Its new intuitive design makes the product simple to use and easier to prescribe. It has a reservoir size of 300 units/3mL. Users can monitor the pump activity with their cell phone and do not require an external controller. The pump uses a provided, single-use, disposable battery.
Modular Medical picked up FDA clearance for MODD1 in September. The company also raised $8 million to end 2024.
By developing its patented insulin delivery technologies, the company hopes to improve access to glycemic control. Its founder, Paul DiPerna, previously founded leading insulin pump maker Tandem Diabetes Care. DiPerna invented and designed Tandem’s t:slim pump.
