Osprey Medical packs $18m cash after IPO

Medical device company Osprey Medical (ASX:OSP) is still cashed up from its 20 million IPO on the ASX, despite recording a cash outflow for the June quarter of $1.4 million.

The company – which is commercialising cardiovascular technology developed in Melbourne – revealed in a medical filing it had cash at the end of the quarter of $18.2 million.

The net proceeds from its IPO and ASX listing, which completed in May, totalled $19.2 million.

Osprey Medical is gearing up to conduct clinical trials of its lead product, the CINCOR System, and plans to use part of the proceeds of the IPO for funding.

The CINCOR System is a catheter and vacuum system designed to be used by cardiologists during blood vessel x-rays, in order to extract most of the toxic dye used in the x-rays before it reaches the kidneys.

This lowers the risk of Contrast Induced Nephropathy (CIN), a form of kidney damage caused by exposure to the dyes.

One of the CINCOR trials will complement an application for regulatory approval in the US. The second is a European marketing trial scheduled to commence in 2H12.

During the quarter, a lead investigator for the US trial was appointed, and more than half of the 45 patients for the European marketing trial were enrolled.

The company is also preparing for a controlled launch of the product in Europe – where it has CE Mark approval – starting with a launch in Germany.

Early this month, Osprey Medical revealed it had received a $1.1 million grant from the Victorian government's Market Validation Program to fund a first-in-man clinical study of its Limb Recovery System.

The system, which uses the CINCOR technology, is designed to allow the localised delivery of high doses of antibiotics to the lower limb in diabetes patients with limb-threatening foot infections.

Osprey Medical (ASX:OSP) shares were trading unchanged at $0.400 by around 2:30pm on Monday.