Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • Allied Healthcare Group Completes A$4.6M Raising To Launch CardioCel® 0 comments
    Jan 22, 2013 8:14 PM

    Allied Healthcare Group (ASX: AHZ) has added a further A$2.9 million to its cash reserves with the completion of its share purchase plan.

    Together with the $1.7 million placement completed in December 2012, Allied has raised a total of over $4.6 million, placing the company in a strong position for 2013.

    The Lead Manager for the placement and share purchase plan was RBS Morgans.

    The majority of the funds raised will be allocated to the preparation and market launch of CardioCel® and further building the company's regenerative tissue franchise, which is expected to start generating revenue this year.

    Indicating just how close Allied is to commercialisation of CardioCel®, the patch was used for the first time outside of clinical trials to surgically repair congenital heart defects in infants in mid-October 2012.

    The company expects CardioCel® will receive marketing approval in the first half of 2013 in at least one global jurisdiction.

    Lee Rodne, managing director, commented: "This capital raising places Allied in a strong financial position and comes at a key point in the company's development.

    "It will enable us to focus on getting our first regenerative product approved and launched, as well as giving us additional resources to progress our earlier stage vaccine programs."

    Funds will also be used to invest further into the Allied's DNA vaccine programs.

    The lead program, targeting herpes virus infections, is scheduled to enter into Phase I studies this year with some initial results scheduled for release before the end of the year.

    Milestones

    Rodne said: "We are expecting 2013 to be an exciting year for Allied as we approach some major value creating milestones."

    The major anticipated milestones for the company this financial year include:

    - European approval for CardioCel®;
    - 510K submission to the FDA for CardioCel®;
    - Initiation of the Phase I HSV clinical study; and
    - Stronger revenue from the sales and marketing division.

    CardioCel® to grow revenues

    The market potential for CardioCel® is substantial. If the initial launch of the product is received well, revenue will increase significantly over the next 12 to 24 months.

    The company anticipates it will submit a 510K marketing approval application for CardioCel® with the U.S. Food and Drug Administration in the March quarter of 2013.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.