bioMD launches bid for Allied Medical

15/02/2011 - 09:19

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Medical devices and technologies group bioMD has announced a friendly takeover bid for Allied Medical, an unlisted public company backed by Andrew Forrest and led by Ian Frazer.

Medical devices and technologies group bioMD has announced a friendly takeover bid for Allied Medical, an unlisted public company backed by Andrew Forrest and led by Ian Frazer.

Allied has recommended its shareholders accept the offer, which is subject to a 90 per cent minimum acceptance caveat, and bioMD shareholder approval.

Under terms of the bid, bioMD is offering Allied shareholders 428,275,968 bioMD shares, valuing Allied at approximately $38.5 million, on today's share price.

At 09:15AM (WST) bioMD shares were up 1 per cent, trading at 9 cents.

After the transaction, Allied shareholders will hold 70 per cent of the new group, while the group's two largest shareholders will be biotechnology group Avexa and Mr Forrest.

bioMD said the acquisition would bring together a next generation vaccine product pipeline with a profitable medical device distribution network.

The new group will include medical development company Coridon, which is led by Dr Frazer, the developer of the Gardasil cervical cancer vaccine.

Allied Medical chief executive Lee Rodne said the offer was a good opportunity for Allied's shareholders to benefit from bioMD's unique technologies.

"bioMD's lead product CardioCel has completed phase II human trials, is about to undergo regulatory approval, and adds significantly to Allied's product development pipeline," Mr Rodne said.

"Our strategy for some time has been to seek appropriate partnerships for growth, while at the same time further developing our cash generating medical distribution business.

"This opportunity will create a new diversified medical group with real short and mid-term growth opportunities."

bioMD managing director Michael Bennett said the two firms had a corporate synergy that would allow for the building of a healthcare group that can provide technically advanced medical devices and solutions.

"It will also provide the infrastructure needed for the commercialisation of new Australian medical technologies and devices," he said.

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