BioWorld International Correspondent

SYDNEY, Australia - Melbourne-based PanBio Ltd. plans to raise A$12 million (US$6.2 million) in an initial public offering, with A$6 million of the money to be spent on developing its range of diagnostic technologies.

PanBio CEO Mel Bridges said that part of the IPO funds would be used to develop the company's international operations and expand marketing efforts for its existing range of products.

But A$6 million will be used to develop the company's diagnostic technologies, including microarrays and assay materials, with the company being particular interested in fast or point-of-care diagnostic kits, which could be used on the spot by people with little training.

Of a range of diagnostic technologies now sold by PanBio, according to the IPO prospectus, almost half of the company's total sales are from an enzyme-linked immunosorbent assay (ELISA), which is used in a 96-well microplate form. The material in each well can be altered to test for particular antibodies in blood.

The next largest category (about 10 percent of sales) is a series of rapid diagnosis tests for Dengue fever (common in Asia Pacific), malaria, melioidosis and scrub typhus.

Bridges said the company had technology to further develop the tests using various platforms, including plastic membranes.

He also said out that, unlike many other biotech floats, PanBio has a long history as a company and is cash-flow positive on its basic operations, meaning it makes money before taking into account research and development expenditures and the book entries for depreciation of assets.

The company is forecasting revenues of around A$11.4 million for this financial year to the end of June, with a net loss after taxes of A$0.13 million, after allowing A$1.9 million for research and development plus A$0.49 million for depreciation. The stock is expected to list in early April.