March 5, 2010 (FinancialWire) — BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) has received commitments from two institutional investors — Great Point Partners, LLC and Deerfield Management Co. — to purchase $18 million of securities in a registered direct offering.

The company said it expects to receive net proceeds of around $17.5 million. Under the deal, BioSante has agreed to sell an aggregate of around 10.4 million shares of its common stock and warrants to purchase up to around 5.2 million additional shares of its common stock. Each unit, consisting of one share of common stock and a warrant to purchase 0.5 of a share of common stock, will be sold for a purchase price of $1.73, which is equal to the closing price of BioSante’s stock on March 3 on the NASDAQ Stock Market.

The warrants to purchase additional shares will be exercisable at an exercise price of $2.08 per share beginning six months and one day after the date of issuance and will expire five years from the date that the warrants first become exercisable.

BioSante said it will use the proceeds from the transaction for general corporate purposes, including continuing to fund BioSante’s LibiGel Phase III clinical study program, as well as to seek opportunities for its GVAX cancer immunotherapies, 2A/Furin and other technologies.

Illinois-based BioSante is a specialty pharmaceutical company focused on developing products for female sexual health, menopause, contraception and male hypogonadism.

The company’s lead products include LibiGel, which is in Phase III clinical development for the treatment of female sexual dysfunction, and Elestrin, which has been developed through FDA approval by BioSante and is indicated for the treatment of moderate-to-severe vasomotor symptoms associated with menopause.

Elestrin is currently marketed in the U.S.

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