Osprey Medical (ASX:OSP) said it raised about $11 million (A$14 million) in a private placement for its Avert device, which is designed to prevent contrast-induced nephropathy in patients with chronic kidney disease.
Minneapolis- and Melbourne-based Osprey said the oversubscribed, 10.8-million-share round included backing from "international and domestic institutions and accredited and sophisticated investors," including its 2 largest shareholders, Brandon Managed Funds and Talu Venture (formally CM Capital).
The Avert system is designed to reduce and monitor the amount of contrast agent injected during angiographic heart and peripheral vascular imaging procedures. Avert won 510(k) clearance from the FDA in August under a"controlled infusion of dye" indication. The next month Osprey got the safety watchdog’s OK for a clinical trial aimed at expanding the indication to include "reduction of contrast-induced nephropathy" in angiography or stenting patients, the company said.
Osprey said it plans to use the proceeds from the placement to finish a post-market trial aimed at expanding the Avert label to include "lowering patient dye dose while demonstrating reduced reflux and adequate image quality," CIN reduction and lower hospital costs. It’s also targeting "routine adoption of Avert in initial commercial sites in Texas" and expanding its sales footprint in the Lone Star State.
A full U.S. launch is on tap for early 2016, the company said.
Canaccord Genuity acted as the sole lead manager and bookrunner for the placement, according to a press release.
"We are very pleased with the oversubscribed placement. It further broadens our shareholder base with strong support received from both existing institutional shareholders as well from several new institutions in both Australia and overseas," president Mike McCormick said in prepared remarks. "This capital raising places Osprey in a strong position. Enrolment in our post-market clinical trial is well on track and we are targeting completion of the trial and FDA submission in order to expand Avert marketing claims by end CY 2015."
(A$1 = 78.9¢)