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Allied Healthcare Group Completes A$4.6M Raising To Launch CardioCel®

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.

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