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Osprey Medical launches a $20m initial public offer

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US-based medical device developer Osprey Medical Inc. is seeking to raise $20 million through an initial public offer (IPO) of securities and list on the Australian Securities Exchange.

Osprey has developed technology called the CINCOR System, which helps reduce the risk of kidney damage caused by a toxic dye that is used in some forms of heart surgery.

Osprey said on Thursday that millions of patients worldwide undergo stenting and angioplasty procedures each year, and more than one in four risk developing a condition called contrast induced neuropathy (CIN).

CIN is a form of kidney damage caused by the contrasting dyes that cardiologists use to x-ray the heart and blood vessels during heart procedures.

The dye can reduce the blood flow in kidneys, which can kill kidney cells.

The CINCOR System is a catheter and vacuum system that captures and removes a significant quantity of the dye as it leaves the heart’s main drainage vein and before it reaches the kidneys.

“Current methods used for CIN prevention have had limited impact on reducing CIN risk, and our initial data shows that the CINCOR System can reduce the risk of CIN by 50 per cent,” Osprey Medical chief executive Mike McCormick said in a statement.

“Therefore, we believe that our product can significantly improve patient quality of life and also lead to significant savings within the health system.”

The CINCOR System originated from technology developed at Melbourne’s Baker IDI Heart and Diabetes Institute.

Osprey Medical says the CINCOR System has received approval from the US Federal Drug Administration (FDA) to conduct a trial starting in 2012.

Osprey is aiming for FDA approval and US launch of the CINCOR System in 2014.

The CINCOR System already has European regulatory approval, and sales in Europe are planned to start in 2012.

Osprey is offering 50 million CHESS Depository Interests (CDIs) at 40 cents per CDI.

Following the offer, Osprey is expected to have a market capitalisation of about $40.4 million.

Osprey said funds raised from the IPO would be used for the US trial, launching the CINCOR System in Europe, developing the CINCOR platform technology for other applications, and to provide ongoing working capital.