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Med BioGene Files for US IPO

NEW YORK (GenomeWeb News) – Canadian personalized diagnostics firm Med BioGene has filed for an initial public offering in the US.

The Vancouver-based firm, which trades on the Toronto Stock Exchange, did not say how much it expects to raise in proceeds from the offering. Though the preliminary prospectus also did not provide the price for the common shares being offered in the US, the firm noted that its shares closed Dec. 24 on the TSX at C$6 (US$5.66) — after giving effect to an assumed 1-for-50 reverse stock split of its outstanding common shares that it expects to effect prior to or upon the date of the offering.

Med BioGene has developed LungExpress Dx, a 15-gene signature test for use in identifying those patients with early-stage non-small-cell lung cancer, who are at a higher or lower risk of mortality following surgical removal of their tumor. The firm expects to launch the test in the US during 2010.

Med BioGene said that following completion of the US offering it intends to use the funds to complete validation of the commercial LungExpress Dx assay; establish a CLIA lab, where it will perform the test; launch LungExpress in the US as a service through the CLIA lab; build a sales, marketing, and reimbursement team, either on its own or through partnerships; commercialize LungExpress in Asia and Europe through distribution deals; and seek pharma partners to use LungExpress as a companion diagnostic.

Med BioGene signaled its intent to go public in the US last month. At that time, the firm also filed an interim non-brokered private placement of a maximum of C$2.5 million (US$2.37 million) worth of units.

The company has not reported any revenues this year. For the first nine months of 2009 it had a net loss of US$1.6 million, and as of Sep. 30, it held US$1 million in cash and cash equivalents.