ImpediMed Capital Raising Targets US$4.4 Billion Global Cancer Medical Devices Market
September 25, 2007
ImpediMed capital raising targets US$4.4 billion global cancer medical devices market
Australian medical device company ImpediMed Limited today announced a capital raising of up to $18 million and a planned listing on the Australian Stock Exchange to support its international launch of a suite of medical devices that enable the early detection and monitoring of secondary lymphedema in cancer survivors.The company has the only medical device (Imp XCA) with an FDA clearance in the United States for the clinical assessment by health care providers of secondary lymphedema in the arm.
The potential global market for its lymphedema products is estimated by ImpediMed, based on the widespread adoption of a new pre-emptive care model, at US$4.4 billion for device sales and approximately US$500 million in annual consumables.
Distribution partners have been appointed to support the United States and European launch of the Imp XCA device later this year and additional distribution agreements are currently being negotiated.
The company, led by CEO Greg Brown, has an experienced management team with international experience in successfully introducing medical devices to global markets and is supported by a strong Board of Directors with significant health care industry experience of Mel Bridges (chair), Cherrell Hirst, Martin Kriewaldt, James Hazel and Michael Panaccio.
ImpediMed Chairman Mel Bridges said proceeds raised from the float would be used primarily to advance ImpediMed's commercialisation program for its devices and penetrate new medical markets in Australia and overseas.
He said secondary lymphedema was a common side effect of cancer therapy and surgery which can significantly affect quality of life. It was estimated that approximately 10 million people had developed secondary lymphedema as a result of breast and pelvic cancer therapy, recurrent infections, injuries or vascular surgery.
"However results from a clinical research trial conducted over five years (2001-2006) in the US at the National Institutes of Health indicated that progression of secondary lymphedema in newly diagnosed breast cancer patients may be reversed if diagnosed and treated early.
"ImpediMed's primary product range consists of a number of medical devices that enable the early detection and monitoring of secondary lymphedema in cancer survivors before the onset of symptoms that are detectable using the most commonly used clinical technique," said Mr Bridges.
ImpediMed is seeking to raise up to $18 million through:
- a fully underwritten public offer of 12.2 million shares at 72 cents per share to raise $8,784,000;
- the non-underwritten public offer of a further 1.4 million shares at 72 cents per share to raise up to $1,008,000; and
- the issue of 11.4 million shares at 72 cents per share to raise $8,208,000 to existing holders of convertible notes.
"The availability of additional working capital in addition to the $20 million already invested in the company to date will enable ImpediMed to pursue a number of business development opportunities", said Mr Bridges.
ImpediMed has already successfully attracted two venture capital investors including Starfish Ventures (Melbourne) and Versant Ventures (San Francisco). Starfish Ventures is known for its investments in several Australian life science firms. Versant Ventures is a healthcare-focused venture capital firm with more than US$1 billion in committed funds and is currently managing investments in over 70 companies in the areas of medical devices, biotechnology/pharmaceuticals, healthcare services, and healthcare information technology.
ImpediMed's prospectus can be viewed at www.impedimed.com.au
Offers of ImpediMed securities will be made in, or accompanied by, a copy of the prospectus. Anyone wishing to acquire securities in ImpediMed will need to complete the application form that will be in or will accompany the prospectus.
ENDS
For more information contact:| Mel Bridges | ImpediMed Limited - Chairman | Office: +61-7-3423-1777 |
| Greg Brown | CEO and Managing Director | Office: +61-7-3423-1777 |
| John Lamont | Phillips Group – Media Relations | Mobile: +61-408-737-450 |
About ImpediMed Limited:
ImpediMed Limited was established in 1999 by The University of Queensland's main technology commercialisation company, UniQuest Pty Ltd. The Brisbane-based company was incorporated in 2000 to commercialise technology developed by researchers from University of Queensland and the Queensland University of Technology.ImpediMed Limited develops and globally markets medical device systems for use in non-invasive screening and monitoring of human disorders and diseases.
ImpediMed's primary product range consists of a number of medical devices that enable the early detection and monitoring of secondary lymphedema in cancer survivors before the onset of symptoms that are detectable using the most commonly used clinical technique.
ImpediMed has the only medical device with an FDA clearance in the United States for the clinical assessment by Health Care Providers of secondary lymphedema in the arm. This device is targeted to be launched internationally before the end of the year.
www.impedimed.com.au