A pharmaceutical startup led by a Charlotte-area dentist is raising capital to bring its product to market.
Cornelius-based Balanced Pharma Inc. launched a $25 million capital offering this week to support production of its dental anesthetic. The company is offering 6.25 million shares of common stock at $4 per share, according to a filing with the U.S. Securities and Exchange Commission.
Balanced Pharma is developing Libracaine Dental, a pH-balanced, local anesthetic injection. Current anesthetic options contain acid for preservation, which can result in a more painful, slower-acting drug, according to the company. Neutralizing the acid, or buffering, has previously required manual mixing.
Scott Keadle, who leads Mooresville's New Smile Carolina, founded Balanced Pharma in 2020 to address two of patients' top concerns — fear of the shot and potential anesthetic failure. Keadle, a former Iredell County commissioner, has been in dentistry for more than 30 years. He was CEO at Salisbury Dental Care from 1990 to 2017. Since 1996, he has also overseen commercial real estate firm Keadle Professional Properties.
Keadle is the firm's only full-time employee. Contractors fill the other roles for now. He shares ownership with his wife, Ming Fu, and son, David, according to the filing. John Selig, a managing partner at WaveEdge Capital, serves as board director.
Keadle declined to comment on the capital raise.
Balanced Pharma, an early-stage company, has a long way to go. It is still pursuing several patents and awaiting regulatory approval, creating additional risks for investors. Libracaine Dental is not expected to launch until 2025. The company had no revenue as of Dec. 31 and listed a net loss close to $901,000 for operating expenses in 2021. For context, losses are not unusual for emerging-growth companies.
In the filing, Balanced Pharma said it has come up with an injection cartridge design and developed a prototype for the drug. It has also engaged with raw material suppliers and drug manufacturers. The startup raised about $2 million in equity capital throughout 2021 with 44 investors, according to an SEC filing in February.
Balanced Pharma has big plans for the $25 million, if the raise is successful. The company would have $23.75 million to use after commission and fees, the filing stated. That capital would go toward product development and manufacturing, marketing, obtaining patents and administrative costs.
The company said, after launching Libracaine Dental, it hopes to develop similar products for use in dermatology, plastic surgery, emergency medicine, interventional radiology and podiatry.
