Australia seems to be an increasingly popular spot for foreign devicemakers to raise funds through initial public offerings and subsequently list on that country's exchange. Following in the footsteps of GI Dynamics, U.S.-based Osprey Medical has raised $20 million Australian ($20,829,096) in its IPO and plans to list on the Australian Securities Exchange (ASX).
Osprey's main product, the CINCOR system, helps reduce the risk of kidney damage caused by a toxic dye used in some heart surgeries. The company hopes to use the funds to make the system more widely available. It is already planning to conduct a pivotal trial supporting FDA clearance, and is eyeing a controlled market launch in Europe. In addition, it hopes to develop the CINCOR platform for additional applications, according to News-Medical.net.
"Our investors can look forward to a busy year ahead with updates on our progress in Europe and the U.S. in the coming months," promised Mike McCormick, president and CEO of Osprey Medical.
Last year, GI Dynamics started trading on the ASX after an $85 million IPO. The company had several reasons for choosing Australia for the IPO, CEO Stuart Randle told FierceMedicalDevices at the time. Obesity and Type 2 diabetes are worldwide problems, and the equity markets have become more global. Furthermore, the company had investors who had previously invested in that country, so it was viewed as a great option.
Stent maker Reva Medical also looked Down Under for its IPO, citing the difficulties it had raising money in the U.S. "There are so many companies that require capital like our company, and they don't have access to the capital markets in the United States," said Robert Stockman, Reva's CEO, as quoted by The New York Times last year. "People are looking at any option to stay alive, which is what we did."
Indeed, North American device companies appear to be eyeing a dual listing in Australia and the U.S., said Kim Jacobs of corporate adviser Inteq in a December ASX report. "The reality is, America is the [center] of the universe for the medical-device industry," he explained. "When medical-device makers reach a certain size, it makes perfect sense to dual-list in the U.S. and tap a larger investment pool and a more developed biotechnology industry. Australia can play a larger role in attracting younger life-science companies that are nearing [commercialization], help fund their growth, and keep them dual-listed on ASX and Nasdaq."