Premier makes a cautious ASX debut

Premier Bionics (ASX: PBI) made a quiet entry to a cautious biotech market today when it listed on the Australian Stock Exchange.

The device and diagnostics developer joined the index at 11am, coming on line at 18 cents - down on its issue price of 20 cents a share.

Chief executive officer Dr Martin Soust said the listing had gone smoothly.

"I don't think the market had a lot of upward direction this morning," Soust said.

"It's the first day and in reality what's more important is what's happening in six to 12 months' time."

The initial public offering raised about $3.5 million for the company enabling it to finalise it purchase of Pulmosonix, a Monash University spin-off developing a non-invasive lung monitoring technology.

Soust said the company was also currently reviewing two new projects in the cardiovascular field.

The potential investments, which arrived on his desk this week, included a cardiovascular blood test and non-invasive heart monitor.

"The focus now is to review projects and take a look at what's in the marketplace to not only drive Pulmosonix on, but to look at other opportunities," Soust said.

Asked if he was disappointed that Premier's major shareholder, with 3 million shares, was also its underwriter, ABCPeregrine Corporate, Soust said he was not.

"There are other significant shareholders in there as well," he said, adding that the company had 470 shareholders. "We have got a good spread and I am comfortable with the way the it has gone."

Intersuisse biotech analyst Peter Russell said the company's listing was in keeping with its size.

"It's a very small stock so it wouldn't interest a lot of people and many people are not interested in biotech now anyway," Russell said. "It's a tough time."

He said Premier's business model - to take device and diagnostic technology through proof of concept and patenting to commercialisation and licensing - was a good one.

And he said it was common for the underwriter to take a major stake, particularly at the small end of the market and in such a difficult environment as now.

"I still regularly see positive things to report in the biotech market and yet nobody is interested," Russell said.

"At least we're using this time to move forward and better underpin the science and administration of these companies."

At the time of writing Premier Bionics was trading at 18.5 cents with almost 400,000 shares trading hands, giving the company a market capitalisation of about $4.3 million.