Pharmaxis reveals IPO plans

Pharmaxis has announced plans for a AUD$21 million float on the ASX in October/November.

The John Curtin School of Medical Research spin-off is the first of several companies expected to float on the ASX in the next few months, as the biotech sector regains its momentum.

According to CEO Dr Alan Robertson, though, the timing of the IPO was not dependent on the market situation.

"We decided to embark on this process around July when the IPO window was still closed," he said. "We were interested in taking the company public as soon as possible. But it helps that the sentiment in the sector has turned over in the last six weeks or so."

Pharmaxis filed its prospectus with the Australian Securities and Investments Commission (ASIC) today, and hopes to open the offer on October 7. If all goes to plan, the offer will close on or before October 31 and the company will list on November 14, Robertson said.

Robertson said the funds raised would be used primarily to progress the company's clinical and pre-clinical programs. The company is currently conducting a Phase III clinical trial for its asthma severity test Aridol, and Phase II trials on its cystic fibrosis mucociliary clearance inhalant Bronchitol.

"By raising funds through the IPO of Pharmaxis shares we will progress these products towards commercialisation and advance the other projects in our portfolio. As our projects progress, so too will our need to expand our manufacturing capabilities," Robertson said.

"We expect Aridol Phase III trials and Bronchitol Phase II trials will be completed by the middle of 2004, representing significant milestones for the company."

The company has its own TGA-licensed manufacturing facility in NSW, and is not looking to partner out the projects at this stage according to Robertson, preferring instead to pursue a fully integrated business model from R&D to commercialisation.

Current investors in the company include GBS Venture Partners, CM Capital Investments and CIBC Australia VC Fund. The company has been well funded over the five years since it was funded, most recently raising AUD$9.6 million last year in a series B round. It has also received five research grants including Biotechnology Innovation Fund grants and R&D Start grants.

42 million shares will be offered at a price of $0.50, with the possibility of raising a further $4 million through oversubscriptions. The IPO is fully underwritten by Wilson HTM Corporate Finance.