SYDNEY, AUSTRALIA – 30 April 2012 – Ventus Medical, Inc., a US based medical device company, has today announced its intention to raise A$40 million through an initial public offer. Ventus Medical is also seeking to list on the Australian Securities Exchange (ASX) under the ticker “VNT”.
“We are excited to be listing in Australia, the birthplace of sleep medicine and a very important market for Ventus Medical. The Public Offer gives investors the opportunity to partake in a compelling opportunity and join us as we enter a new phase of growth,” said Peter Wyles, President and Chief Executive Officer of Ventus Medical.
Ventus Medical has developed non-invasive devices for the treatment of sleep-disordered breathing, a market that includes snoring and obstructive sleep apnoea (OSA). It is estimated up to 26.6% of American adults and 13.5% of Australian adults suffer from OSA, which is often associated with more serious issues such as diabetes, obesity, heart disease and stroke. Snoring is also very common, with global estimates that 44% of males and 28% of females aged between 30 and 60 snore. Sleep loss and sleep disorders are estimated to have cost the Australian economy A$5.1 billion in 2010 including both direct health costs and indirect costs related to lost productivity.
Ventus’ lead product, Provent® Sleep Apnoea Therapy, consists of two small, single-use devices that are applied to each nostril just prior to sleep. Leveraging the Company’s patented MicroValve technology, the product uses the patient’s own breathing to keep the airway open during sleep, reducing the airway obstruction that causes sleep apnoea and snoring. Provent® Sleep Apnoea Therapy has received clearances from the Food and Drug Administration (FDA) in the US, CE Mark approval in Europe and is listed with the Therapeutic Goods Administration in Australia.
Ventus Medical believes the efficacy, combined with the simplicity, relative comfort and portability of Provent® Sleep Apnoea Therapy will drive patient demand and enable it to address current concerns surrounding patient compliance with the existing standard treatments for OSA. It is estimated that 700,000 patients in the US each year become non-compliant with continuous positive airway pressure (CPAP) therapy, the current first line treatment for OSA.
Ventus Medical’s second product, a treatment for snoring, will be one of few clinically demonstrated treatments for snoring available to consumers, which the Company believes will provide it with a distinct competitive advantage over other available treatments. The Company plans to launch its snoring therapy to US consumers in the second half of 2012, pending regulatory clearance from the FDA.
“Ventus Medical’s devices are redefining treatment for sleep-disordered breathing. The Ventus management team has done an excellent job of bringing its technology to commercial stage and is now poised to make a significant impact on this major, global health issue and fulfil its potential to become a leader in this field,” said Jonathan Pinshaw, Chairman of Ventus Medical.
Ventus Medical intends to use the proceeds of the Offers to continue to fund its planned commercial expansion, to generate increased revenues, progress reimbursement for of Provent® Sleep Apnoea Therapy, expand its manufacturing capacity and fund international commercialization activities.
The Public Offer of up to 80,000,004 CHESS Depository Interests (CDIs) is open to retail and institutional investors in Australia and New Zealand and institutional investors in Hong Kong, Singapore and the United Kingdom (Public Offer) and a concurrent offer to accredited investors and qualified institutional buyers in the US by way of a private placement under Regulation D of the US Securities Act of 1933 (together, the Offers). The offer price is A$0.50 per CDI. Each CDI will equal one sixth of an underlying share.
The Public Offer is being managed by Inteq Limited and the lead Australian broker is CCZ Statton Equities.
A copy of the prospectus in respect of the Public Offer may be obtained by telephoning the Company’s Offer Information Line on 1300 651 989 (within Australia) or +61 3 9415 4394 (outside Australia). An electronic version of the prospectus is also available to Australian and New Zealand investors at the following website www.ventuspublicoffer.com.au.
The prospectus contains information about investing in CDIs in Ventus Medical, Inc. under the Public Offer. It is important that potential investors read the prospectus carefully and in full and seek professional advice from their accountant, stockbroker, lawyer or other professional adviser before deciding to invest in Ventus Medical.
The offer of CDIs to investors in Australia and New Zealand is being made under the prospectus and investors in Australia and New Zealand wishing to apply for CDIs under the prospectus will need to complete the application form that will be in, or will accompany, the prospectus and follow the instructions contained in Section 2 of the prospectus. Applications for CDIs under the Public Offer will only be accepted if made on an application form issued together with the prospectus.
About Provent® Sleep Apnoea Therapy
Provent® Sleep Apnoea Therapy is a proprietary medical device used for the treatment of OSA. The device has been evaluated in several published studies and shown to be clinically effective in reducing OSA and improving daytime sleepiness in people with mild, moderate and severe OSA. Provent® Sleep Apnoea Therapy utilizes nasal expiratory positive airway pressure (EPAP) to keep a patient’s airway open during sleep. During inhalation, the valve opens allowing nearly unobstructed airflow. During exhalation, the valve closes, limiting airflow through small openings, which increases expiratory pressure and keeps the airway open, preventing disruption in breathing. Additional information on where to obtain Provent® Sleep Apnoea Therapy in Australia and New Zealand is available at www.bmedical.com.au.
About Ventus Medical
Founded in 2005, Ventus is a US-incorporated medical device company headquartered in San Jose, California, US, which is focused on the development and commercialisation of non-invasive, disposable devices for sleep-disordered breathing ranging from snoring to severe OSA. Current investors in the Company include US venture capital firms De Novo Ventures, Mohr Davidow Ventures and Johnson & Johnson Development Corporation. Additional information about Ventus Medical can be found at www.ventusmedical.com.
Haley Price, Buchan Consulting
+61 3 9866 4722 / +61 (0) 423 139 163
Richard Ayllon, Director of Global Business Development
Alan Taylor, Executive Director
+61 2 9231 3322
David Allen, Executive Director
+61 2 9231 3322