Allied Healthcare completes oversubscribed A$1.7 mln capital raising
Allied Healthcare Group has secured a strong backing from sophisticated investors and institutions, completing its present oversubscribed and raising A$1.7 million.
The funds will be utilized primarily to support the preparation of the company’s CardioCel® heart patch before its imminent launch. This indicates how close Allied is to commercialization of CardioCel® , the patch was used for the first time outside the clinical trials to surgically repair the congenital heart defects in infants in mid-October.
The company expects that CardioCel® will get marketing approval in the first half of 2013 in the least global jurisdiction. Allied is also offering the existing shareholders the opportunity to subscribe for upto A$15,000 worth of shares at the same price as the placement, which was done at $0.02 a share.
RBS Morgan is the lead manager for placement and share purchase plan. Allied has the current and growing revenue that is forecast to be more than $7 million this financial year, and CardioCel® aims to significantly increase the global revenue.
The company expects to submit CardioCel®’s 510 k marketing approval application with the U.S. Food and Drug Administration in March quarter of 2013.
Lee Rodne, Managing Director said, “CardioCel®’s is on the cusp of the global approvals so we need to ensure we maximize the impact it has in the market with extensive pre-launch preparation of the product.” Mr. Rodne also said, “The approval of CardioCel® will be a major step for the company in building a sustainable, integrated global healthcare company in 2013.” He also added, “The market potential for CardioCel® is substantial. If the initial launch of CardioCel® is received well, our revenue will increase signicantly over the next 12 to 24 months.
Allied is seeking initial approval for the use of CardioCel® in the repair and reconstruction of congenital heart disease defects in the infants and children.
After CardioCel® gets the approval, Allied will aim to expand the applications for product in additional cardiovascular areas like the adult heart valve repairs and reconstructions.
The studies have also shown unique properties which make it suitable for use by surgeons as a regenerative cardiac repair tissue patch, as well as delivering key benefits to the patients compared to the current surgical approaches.
Allied Healthcare is a healthcare company focused on investing in and developing next generation technologies with world class partners, acquiring strategic assets to grow its product and service offerings and expanding revenues from its existing profitable medical sales and distribution business.