Middlebrook Pharmaceuticals discovered in 2000 that bacteria exposed to antibiotics in front-loaded, sequential bursts, or pulses, are killed more efficiently than those exposed to standard antibiotic treatment regimens. The company went on to develop novel anti-infective pulsatile drug products that take advantage of this discovery.

Middlebrook is applying their technology to drugs that may have lost their effectiveness in previous applications. The advantages of pulse therapy are: once-a-day formulation, lower dosages, shorter duration of therapy, reduced side effects, reduced incidence of resistance, combination products with superior efficacy over either product alone, and improved pediatric and geriatric dosages.

The $100M investment in Middlebrook should be exciting for investors. However, some Middlebrook investors were hoping for an outright buyout at $6 to $8 dollars a share by a larger pharmaceutical. This investment shows that the company is viable, and that a serious investment company such as Equity Group Investments, LLC would not have moved forward or taken over leadership of the company had they not thought the products were commercially viable and able to return their $100M investment. The average expectation of a venture capitalist is a 20% return per year. This news should be taken well by stockholders, and for those who do not yet own Middlebrook, now may be the time to start watching the company more seriously.

Middlebrook is trading around $2.12 today on volume of 1.6M by 10 am. The 52-week spread for Middlebrook is $1.00 to $4.89. It appears the stock is climbing back up after the disappointing news of the investment instead of a buyout.

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