CathRx opens IPO for listing next month

Sydney medical device company CathRx has opened its initial public offering and aims to raise AUD$14 million before listing on the ASX in late October.

CathRx develops cardiac catheters for the diagnosis and treatment of cardiac arrhythmias. Based on technology within the CRC for Cardiac Technology and UTS, CathRx has developed novel methods for manufacturing catheters.

"CathRx has already started clinical trials and we hope they will be completed by the end of 2005 for the products to enter the market in late 2006," said CathRx executive chairman Denis Hanley. "Funds will also be used for scale up of manufacture from one line to three lines and to complete the development of therapeutic catheters for the right and then left side of the heart

"I think it will be an attractive IPO. I believe it is of a similar ilk to Pharmaxis. The technical risk is behind us -- that was completed before we contemplated the IPO -- and now we have to prove it in clinical trials."

CathRx is seeking to offer 14 million shares at $1 each, fully underwritten by Wilson HTM Corporate Finance. Thirty million shares will be on issue after the offer.

CathRx was founded in 1999 by Dr Evan Chong and Neil Anderson, a materials scientist whose involvement with the industry began at medical device pioneer Telectronics 20 years ago.

The company has previously secured the benefit of a number of research grants and has been supported in its early development by CM Capital Investments, the CIBC Australia VC Fund and Angel investors associated with Principals Funds Management.

CathRx boasts a star-studded board and executive. Executive chairman Hanley led pioneering firm Memtec for 14 years, and in 1994 was awarded an OA and the Clunies Ross prize for his work in commercialising Australian technology. He is also chairman of Pharmaxis (ASX:PXS).

As well as Hanley and Anderson, the board also includes CM Capital partner and founder Carrie Hillyard, IMBcom chair Jane Wilson, and former Pall Asia-Pacific president Andrew Denver. Marketing manager Paul Turner is a former Johnson & Johnson executive.

Earlier this year the company was shortlisted for a NSW government biotech award.