Shares of Medeon Biodesign Inc (益安生醫), which makes medical devices for minimally invasive surgeries, tripled in value from Tuesday through Friday after its debut on the Emerging Stock Market, as investors have high hopes for its management team.
The Emerging Stock Market is a preparatory board for the nation’s two main bourses: the Taiwan Stock Exchange and the GRETAI Securities Market. Trading on the smaller board is restricted to securities firms, by means of negotiation, and therefore initial public offerings are not open to public subscription.
On Friday, Medeon Biodesign shares soared to NT$180, compared with its IPO price of NT$58.
The company, under chief executive officer Jang Yue-teh (張有德), has secured the support of major investment funds in the nation’s biomedical industry, with one of Center Laboratories Inc’s (晟德) subsidiaries holding a 33.05 percent stake and YFY Inc’s (永豐餘投資控股) investment arm Taiwan Global BioFund (上智生技創投) owning 36.43 percent, according to Medeon Biodesign vice president Chen Yi-ju (陳怡如).
Jang, a doctorate holder in materials science from the University of Utah, had served as CEO of another medical device supplier Kyphon Inc, which was acquired by the world’s third-largest medical device company, Medtronic Inc, for US$3.9 billion in 2007.
Medeon Biodesign currently has three products in its pipeline ready for clinical trials and pilot production, Jang told investors on Tuesday, adding that the company is in talks with other companies for licensing of the products.
“The risk for developing a new medical device is significantly reduced after the device completes animal testing and is ready for clinical trials. This is when we talk with global firms to take over the products,.” Jang said. “The role for Medeon Biodesign is to be a partner to global firms with sales channels.”
By cooperating with global firms, the company can shorten time to market and time to peak sales of its products, allowing the company to make profits before its competitors come up with similar devices, Jang said.
Compared with new drugs, sales for a new medical device are lower than a drug, but the risk for developing a medical device is also lower, Jang said.
Center Laboratories chairman Lin Rong-jin (林榮錦) said Medeon Biodesign would spend NT$150 million (US$4.72 million) on research and development a year, hoping that it would develop five products every three years and successfully license at least two of those products.
Medeon Biodesign develops new medical devices by cooperating with doctors in the US and paying attention to their needs, Jang said.
The company will shift its listing to the GRETAI Securities Market by the end of next year, Jang said.
In the first half of this year, the company posted losses of NT$25.89 million, or NT$0.66 per share, according to its filing with the Taiwan Stock Exchange.
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