US biotech Imagion’s IPO chance to boost global expansion plans
A US cancer-focused company is set to list on the Australian market and launch its medical device domestically ahead of a global expansion.
Robert Proulx, chief executive of Imagion Biosystems, said the Australian Securities Exchange was competitive, open and had tight regulatory oversight.
“Basically, all the things you get in the US but at an affordable cost,” he said.
The company, which was founded about 15 years ago, is looking to raise $12 million through a 20c-a-share offer and it will have a market cap of $41m post listing.
Imagion is focused on earlier detection of cancer to improve survival rates. The technology is more sensitive than current imaging methods and can detect early and small tumours not readily detectable with current technologies.
Mr Proulx, who has 30-plus years of bringing various life science and medical device products to the market, joined Imagion two years ago after being approached by activist investors who wanted a new strategy for the company.
“I joined with the idea that we needed to put the gas pedal down and develop a commercial strategy and a road map of how we will bring this technology to market,” he said. “Part of that was providing the appropriate capital structure for the company to do that.”
The Australian market was put on the chief executive’s radar by the activist investor who introduced him to the company, as that investor had previously brought US start-ups to Australia.
Mr Proulx said the company also reviewed a listing in Singapore, Malaysia, Toronto and, obviously, the Nasdaq.
“It’s expensive for a small cap in the US ... it costs the company up to $2m just to be compliant on an annual basis,” he said. He added that Australia’s research and development tax credit was another bonus of investing locally.
“There are also more and more companies in Australia in the medical healthcare space that investors in Australia are beginning to be more open to that sector as opposed to the traditional mining industry,” he said.
The company plans to join the local bourse on May 30 and Mr Proulx said he was “very confident” the company would hit its listing target. Imagion raised about $6m at the end of last year ahead of its initial public offering.
“There are a significant portion of investors from that seed round that are ready to back the IPO round,” Mr Proulx said.
He added that the company wanted to prove to investors its commitment to Australia and would look to conduct its first human testing locally. “If we can do our first human testing in Australia, it would be good for our local investors to see we are spending our research dollars in the Australian market,” he said.
