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Admedus' SPP funds to enhance growth in 2014

Published: 09:46 20 May 2014 AEST

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Admedus (ASX: AHZ) is targeting further growth with its Share Purchase Plan priced at $0.10 and capped at 30% of the shares on issue.

The company had recently raised $8 million through an oversubscribed share placement to sophisticated and professional investors.

Proceeds from both the SPP, which is not underwritten, and the placement will be used for:

-Expanding the sales teams in Europe and the U.S. to build the marketing efforts for CardioCel®;
-Post-market studies and further product development to expand the use of CardioCel® in cardiovascular surgical applications; and
-Progress the HSV-2 therapeutic vaccine into a Phase II study to be initiated before the end of 2014.

Share Purchase Plan


Under the SPP, shareholders can subscribe for up to $15,000 worth of shares priced at $0.10 each.

Admedus will ensure that the number of shares issued under the SPP will not be greater than 30% of the number of shares currently on issue.

The company currently has 1,339,787,921 shares on issue.

CardioCel®

Admedus had earlier this month hit a key milestone after making the first sale of its lead regenerative tissue product CardioCel® in the U.S. ahead of the expected mid-year timing it had previously forecast.

This follows further promising data from its previous Phase II study with the first patient showing no detectable calcification or need for “re-do” surgery 6 years after implantation.

Expanding the sales team in Europe and the U.S. will allow Admedus to expand the use of CardioCel® in those areas. It is targeting to have the product used in 15 key centres in each of these areas.

HSV-2 and HPV therapeutic vaccines

Initial data from Admedus Vaccines’ (formerly Coridon) Phase 1 study for its Herpes Simplex Virus (HSV-2) vaccine has shown that it is safe in study subjects and can generate a T-cell response, an early indicator of an effective immune response.

This supports pre-clinical data and analysis is ongoing.

The therapeutic vaccine was developed by Professor Ian Frazer and his science team at Coridon is designed to prevent transmission of as well as treat herpes simplex virus 2 (HSV-2) by stimulating the immune response to enable a patient to fight against the disease.

Work is underway to progress the HSV-2 therapeutic vaccine into a Phase II study to be initiated before the end of 2014.

Admedus is also planning to initiate within the next 12 months, a Phase I study for its HPV vaccine.

Preclinical data has showed T-cell responses, cessation of tumour progression and viral antigen clearance.

Current HPV vaccines do not treat the disease and there is an estimated $1 billion market for a therapeutic vaccine.

Analysis

With $8 million already committed to the company from sophisticated and professional investors, Amadeus is now seeking to raise funds through its Share Purchase Plan.

Together, this will help the company grow its revenue from increased sales of CardioCel, develop its portfolio of regenerative tissue products and advance its therapeutic vaccine programs.

Key milestones over the coming 12 months include:

-Use of CardioCel® in 15 surgical centres in Europe;
-Building on the initial US CardioCel® sales order and getting CardioCel® into 15 US centres;
-Initial Asian market approval for CardioCel®;
-Submission of the Canadian marketing application for CardioCel®;
-Initiation of CardioCel® market expansion studies;
-Progression of CardioCel® with cellular therapies program;
-Complete preclinical HPV vaccine data;
-Initiation of HSV-2 therapeutic vaccine Phase II;
-Initiation of HPV therapeutic vaccine Phase I.

 

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