REVA MEDICAL IPO OVERSUBSCRIBED TO $85m
January 3rd 2011 02:32
Thursday December 16, 2010
Daily news on ASX-listed biotechnology companies
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REVA MEDICAL
The San Diego-based Reva Medical ASX initial public offering is said to have closed heavily oversubscribed and expects to raise $85 million.
Sources close to the offer told Biotech Daily that the company had hoped to raise $70 million and had allowed a further $15 million for oversubscriptions, all of which had been taken up.
Reva is developing the Rezolve bio-resorbable drug-eluting stent designed to restore blood flow to the coronial arteries and the funds are expected to take the company to a 50-patient Conformité Européenne (CE) mark pilot trial by July 2011.
Reva’s director of corporate development Cheryl Liberatore told Biotech Daily that the company hoped to have CE mark approval in 2013, prior to taking the technology to the US Food and Drug Administration.
Ms Liberatore said the trial of 50 patients with denovo coronary lesions would be a pilot safety trial to be conducted in Brazil and Europe, including a centre in Germany and would be followed up with imaging at 12 months.
Ms Liberatore said the pivotal CE mark trial would involve “several hundred” patients and centres were likely to include Australia and New Zealand.
Ms Liberatore said that Reva had a pipeline beyond the stent including “other polymer related technology” which had not been detailed publicly.
According to the Reva Prospectus the company has 24,973,324 shares on offer equivalent to 249,733,240 Chess Depository Instruments (CDIs) and was offering a further 63,636,370 CDIs at $1.10 each, with the right to offer a further 13,636,360 CDIs.
The company expected the post-IPO market capitalization to be $US344,706,571, but the oversubscriptions would take the total to $359,706,667.
The Reva prospectus said that the company had an operational cash burn of $US12,569,000 for the year to December 31, 2009 and an unaudited burn of $US6,930,000 for the nine months to September 30, 2010, with cash and cash equivalents of $US6,147,000 at September 30, 2010.
Reva’s co-founder, chairman and chief executive officer Bob Stockman, has been chairman since 1999 and CEO since August 2010 and is also a director of Heartware as well as president and CEO of US merchant bank Group Outcome LLC.
The company’s non-executive directors are Brian Dovey, Gordon Nye, Robert Thomas, Anne Keating and James Schiro.
The prospectus said former Dura Pharmaceuticals executive Dr Robert Schultz was Reva’s president and chief operating officer.
Reva said the vice-president of biomaterials product development was Dr Donald Brandom who holds a Bachelor of Science in chemistry from the University of California in Davis and a Ph D in materials engineering science from Virginia Tech.
Further details are at the Reva website
* Reva opened on the ASX on December 23, 2010 at $1.145 fell to $1.12 and ended the day up 15 cents or 13.64 percent at $1.25 with 1.2 million shares traded.
Reva closed at $1.25 on December 24, 2010.
David Langsam, Editor
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