Biological waste specialist MediVac makes market debut

Sydney-based medical waste equipment specialists MediVac (ASX:MDV) made its debut on the Australian Stock Exchange on Monday at AUD$0.30, 20 per cent above the IPO issue price of $0.25.

The company has developed a rapid process for the treatment of biological waste they hope to market to hospitals and the medical community. The MetaMizer Series II is an on-site treatment option that both sterilises and granulates clinical and sharps waste in 12-14 minutes, according to the company.

According to executive chairman Mark Butler, the company plans to use the $3.75 million raised in the IPO to accelerate commercialisation plans in addition to supporting R&D activities. The company is currently negotiating with several hospitals for purchase of the units, and Butler said agreements were "imminent".

Initially the MetaMizer Series II will be targeted at hospitals, he said, with later markets including pathology and other laboratories, as well as quarantine, agriculture, emergency response/bioterrorism and the military sectors.

Both larger and smaller units than the Series II are in development and will probably be available later this year, according to Butler. But the first unit is of a sufficient size and throughput to cope with the waste processing requirements of an average-sized hospital, he said.

The company has entered into a strategic alliance with high-end Australian manufacturing company Broens Industries, which will develop a manufacturing plant for MediVac. The two companies are already working together on the production of the first batch of units and the plan is for Broens to take full responsibility for production by 2005.

But the alliance is not just limited to contract production, said Butler. The international reach of Broens is part of the attraction and there are also plans for Broens to be involved in production technology development.

The company closed its first day of trading at $0.27.