Medlab Clinical Limited is seeking up to $9 million through an initial public offering to develop its existing nutraceuticals business and carry out further research and development of new nutraceutical products.
The company is offering a minimum of 30 million shares to raise a minimum of $6 million and a maximum of 45 million shares to raise $9 million.
Adding interest, the company is backed by the Hall family, which has successfully built and then sold four nutraceutical companies over the last 30 years.
This included the 2012 sale of FIT-BioCeuticals Limited to Blackmores Limited for approximately $40 million.
The company has an extensive patent portfolio. In addition to the 10 provisional patents lodged, there are a further 5 more in draft
This is anticipated to grow significantly as further products are developed and launched.
Medlab develops nutritional pharmaceutical with an initial focus on probiotics.
These products take advantage of the growing scientific evidence of the links between certain bacteria and gastrointestinal health.
Its initial five products seek to improve gut health, energy levels and protein absorption.
Similar to the BioCeuticals business, Medlab’s products are being marketed to registered practitioners. The current global market for probiotics is estimated to be US$30 billion and is expected to grow to US$45 billion by 2018.
In addition, Medlab’s research and development program has targeted the development of bacteria-based medicines in five specific areas:
- Chronic kidney disease;
- Obesity; and
- Pain management.
Human trials for products to alleviate obesity and depression commenced in February 2015. The trials for pain management using medicinal cannabis are awaiting supply approval from the NSW Government.
The company has also established a licensed biologics facility in Sydney as well as sales offices in Australia and the U.S.
Medlab is expected to list as MDC.
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