Osprey Medical raises $21.3m

Osprey Medical (ASX:OSP) said it raised $21.3 million (AUD $28 million) through the sale of CHESS depository interests to support the expanded commercialization of its DyVert System and ongoing research and development.

The Australian company raised the funds from institutional investors through the sale of 100 million CDIs at 21¢ (AUD 28¢) per CDI, set to take place in 2 tranches.

The 1st tranche consists of 38.5 million CDIs, representing 19.3 million shares of common stock, followed by a 2nd tranche of 61.5 million CDIs, worth approximately 30.8 million common shares.

“We are delighted with the oversubscribed placement. It reflects a strong endorsement from the investment community and places Osprey in a very strong position to aggressively expand its sales and marketing team in the US. Our commercialisation efforts in the US have resulted in strong sales traction to date with 7 quarters of consecutive growth in sales and samples. Our original sales territory, San Antonio Texas, was profitable in June 2016 with other territories following a similar sales trajectory,” CEO Mike McCormick said in a press release.

Funds from the round are slated to support the expanded commercialization of its DyeVert system, continued R&D of its DyeVert and other products, ongoing clinical evaluations and to expand and drive growth.

Cannacord Genuity and Bell Potter Securities acted as joint lead managers for the placement, with Vesparum Capital acting as financial advisor to Osprey.

Last October, Australian investors, reacting to news that Osprey Medical failed to meet a key endpoint in a clinical trial, took OSP shares down by some -55%.

The plunge came despite news that the FDA approved expanded claims for Osprey’s Avert device, which 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 2014 under a “controlled infusion of dye” indication and soon began a clinical trial aimed at expanding the indication to include “reduction of contrast-induced nephropathy” in angiography or stenting patients.

But the trial failed to show a significant difference in contrast-induced nephropathy between the cohort treated with Avert and the control group, the Melbourne-based company said today.

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