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Admedus clinches $12M in oversubscribed placement

The specialist healthcare company raised $12 million in a canter from institutional and sophisticated investors as it looks to increase sales of its lead regenerative tissue product CardioCel®. It also expects interim data from the Phase II clinical study for its Herpes vaccine.

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Admedus Limited (ASX:AHZ) is now well funded to boost sales and advance its regenerative tissue product development and immunotherapy programs after raising $12 million through a heavily oversubscribed placement.

This was achieved through the private placement of shares priced at $0.07 each to institutional and sophisticated investors.

The company will also undertake a 1 for 7 non-renounceable pro-rata offer of shares priced at $0.07 to raise up to $16 million. Any shortfall will be placed by the directors at their sole discretion.

Morgans is Lead Manager to the placement and the Rights Issue, supported by WG Partners.

“This capital raising places the company in a strong financial position, and allows us to continue to build our sales teams and ongoing sales activities across the group as well as make significant progress in our regenerative tissue product development and immunotherapy programs,” chief executive officer Lee Rodne said.

“The next 12 to 36 months will be important for Admedus as we grow revenue across the company as well as expand our product development and R&D effort with a goal of continued revenue growth across a number of products.

“Admedus continues to grow as a specialist healthcare company, with the increase in sales of CardioCel® across Europe, Asia and North America, the Herpes vaccine in a Phase II clinical study with interim data due towards the end of this year and the HPV therapeutic vaccine also heading into clinical trials.”


Use of funds

Proceeds from the placement and rights issue will support ongoing programs including:

- Expanding the sales teams in Europe and North America to build the foundation that has been established over the past 12 months with CardioCel® being used in 60 centres globally;
- Post-market studies and further product development to expand the use of CardioCel® in cardiovascular surgical applications, such as heart valve repairs;
- Expansion of the ADAPT® regenerative tissue product portfolio; and
- Fund the Human papillomavirus (HPV) therapeutic vaccine Phase Ib study and supporting research activities for the Admedus Vaccine programs.

 

Growth Drivers

Admedus is a growing healthcare company with an established revenue stream.

Already its first regenerative tissue product, CardioCel®, is available in major markets and the continued sales growth in Europe, North America and Asia have placed it on the path to mark its strongest sales quarter.

The bio-scaffold for the repair of congenital heart deformities and complex heart defects including repairing heart valves recently received initial orders from Hong Kong and added new centres in France and Italy.

CardioCel® is now used in over 60 centres globally with 28 in Europe and a further 28 centres in the U.S.
 
Over 1,200 patients have benefited from CardioCel® as part of their cardiovascular repair surgery.

Over the next 12 months and beyond, the company plans to continue sales growth for the product, increase its use in cardiovascular applications and expand its regenerative tissue portfolio for surgical applications beyond its use in the repair of cardiovascular defects.

Admedus will also continue working with Professor Ian Frazer to develop immunotherapy programs based on his novel platform technology, including important Phase II interim study data due in the second half of 2015.


Analysis

Admedus’ $12 million share placement places it in position to increase sales of its lead regenerative tissue product CardioCel®.

This also supports continued development of its regenerative tissue portfolio for further cardiovascular applications as well as surgical applications beyond its use in the repair of cardiovascular defects.

The company is also advancing its immunotherapy programs with Professor Ian Frazer.
   
Further funds are anticipated from the 1 for 7 non-renounceable pro-rata offer of shares priced at $0.07 to raise up to $16 million.

Key Milestones (12 Months)

Regenerative tissue portfolio and CardioCel®
- Increase number of centres using CardioCel® globally;
- Growing sales in the US, Asia & Europe;
- Additional market approvals for CardioCel® in Asian markets;
- Initiation of CardioCel® market expansion studies such as a Tri-leaflet Aortic Heart Valve Repair Study; and
- Expanded regenerative tissue portfolio.

Immunotherapies
- HSV-2 Phase II interim data H2 2015;
- Complete and analyse preclinical HPV studies; and
- Initiation of HPV Phase I.



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