Osprey Medical Inc, has today announced that its Initial Public Offer (IPO) raising of A$20 million has closed. Osprey Medical’s Offer was well supported by institutional and retail investors in Australia, including founding investors CM Capital and Brandon Capital. The Initial Public Offer was underwritten by Shaw Corporate Finance.
The funds have been raised through an initial public offering of 50 million CHESS Depositary Interests (CDIs) at $0.40 and the indicative market capitalisation of Osprey Medical upon commencement of trading (based on the offer price) is approximately A$40.4 million. Admission of Osprey Medical to the official list of the ASX (Official List) and quotation of the CDIs on the Official List remain subject to satisfaction of all the listing conditions prescribed by the ASX. Upon listing on the ASX, Osprey Medical’s CDIs will trade under the ticker “OSP”. “We are very pleased that investors have recognised the excellent commercial prospects for our lead product, the CINCOR System,” said Mr Mike McCormick, President and CEO of Osprey Medical.
The funds raised in the Offer will be used to:
- Conduct a pivotal clinical trial and seek US FDA clearance;
- Undertake a controlled market launch of the CINCOR System in Europe;
- Further develop the CINCOR platform technologies for additional applications;
- Conduct a medico-economic study to assist in both market adoption and reimbursement coding for the CINCOR System; and
- Provide ongoing working capital.
“The successful completion of this raise enables us to rapidly move forward with our pivotal clinical trial in the US and also to commence commercialisation of the CINCOR System in Germany and the Netherlands,” said Mr McCormick. “Our investors can look forward to a busy year ahead with updates on our progress in Europe and the US in the coming months.” Osprey Medical is a late stage medical device company and its lead product, the CINCOR System is used in angioplasty and stenting procedures to remove dye from the heart before it reaches the kidneys. The technology was developed at the Baker IDI Heart and Diabetes Institute in Australia.
Dye is routinely used to x-ray the heart tissue during these heart procedures, but it can cause serious and irreversible damage to the kidneys in patients with pre-existing kidney disease. Approximately 25% of angioplasty and stenting patients are at high risk of contrast induced kidney damage, also known as contrast induced nephropathy (CIN), and approximately 1-in-5 high-risk patients end up with CIN. CIN may cause irreversible damage that can lead to increased heart and kidney complications including death, and there is currently no viable way of preventing dye from reaching the kidneys.
The CINCOR System has CE Mark approval with a commercial rollout planned in the European market in 2012. Osprey Medical also plans to start a registration directed pivotal clinical trial in 2012 and is aiming for FDA approval and US launch of the CINCOR System in 2014. About Contrast Induced Nephropathy (CIN)
Contrast Induced Nephropathy (CIN) is a form of kidney damage caused by the toxic effects of dyes (contrast) used by cardiologists to x-ray the heart and blood vessels during commonly performed heart procedures such as angioplasty and stenting. The dye is toxic and can reduce the blood flow in kidneys, which can lead to kidney cell death and serious patient complications.
About CINCORTM System