Bleeding hemorrhoids allows Ventrus Bio ($VTUS) to close on $52 million

($VTUS) to close on $52 million

One of my researchers coincidentally sent me the following article on the day that Ventrus Biosciences (NASDAQ: VTUS; StockTwits: $VTUS), closed on its secondary offering of 5,175,000 shares of common stock at a price to the public of $10.00 per share for gross proceeds to Ventrus of $51.75 million. The title of the article is "Most Effective Treatments Options for Bleeding Hemorrhoids." Ventrus is a pharmaceutical company focused on the development of late-stage prescription drugs for gastrointestinal disorders, specifically hemorrhoids, anal fissures and fecal incontinence.

The article spells out the current solutions on the market which include:

1.Natural Treatments - Fresh fruits, whole grains, green vegetables, beans, and/ or fiber supplements.
2.Pills and Creams - Bleeding Hemorrhoids treatment is possible and is successful in many medical treatments also. It can be treated by regular intake of prescribed pills by concerned doctor, applying creams or lotions to relieve pain.
3.Medical surgery - Surgical options to choose from including the Milligan-Morgan technique and a PPH procedure.
All of these therapies have one thing in common - they work to varying degrees of relieving pain but they don't really tackle the underlying issue. The great majority of current treatments provide only temporary relief from the symptoms of hemorrhoids and do not address the cause of hemorrhoids. The mechanism of action of these treatments is either generally anti-inflammatory, such as steroids, or acting as a protective coating on the hemorrhoid or acting as local anesthetics, in the case of most of the over-the-counter, or OTC, products, or unknown, in the case of herbal remedies, and we are not aware of any clinical trials published in medical journals on the efficacy or safety of any topical or oral drug currently marketed in the U.S. for the treatment of hemorrhoids.

Many Biotech companies are a drug or treatment looking for a market. In the case of Ventrus, the hemroids market is clearly looking for a real solution, and that is why investors were so supportive of this secondary offering done by VTUS this week.