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Allied Healthcare 2013 financial year revenue up 15%

Published: 06:07 30 Jul 2013 BST

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Allied Healthcare (ASX: AHZ) has reported strong top line revenue growth in the 2013 financial year with full year revenue up 15% to $7.4 million.

The company finished a cash balance of $2.45 million as of 30 June 2012 and had received a $1.9 million grant towards commercialisation of the company’s CardioCel® regenerative tissue product.

Allied noted that it currently has sufficient capital to achieve its major milestones, including the initial approval and launch of CardioCel® and the start of the first clinical study for the Herpes vaccine program with Professor Ian Frazer’s Coridon group in which Allied has 46.8% interest.

It is now advancing its pre-commercial launch activities in preparation of approvals and launching CardioCel® in overseas markets.

Approval for the first of its regenerative tissue products will provide a lift in revenue for the company.

CardioCel®

During the June 2013 quarter, the company recorded a number of highlights for CardioCel®.

It noted that a number of cardiothoracic surgeons in Australia have received approval for early access to CardioCel®.

This brings to six the number of surgeons that are using CardioCel® to repair and treat congenital heart disease.

The increased use highlights the benefits of the product for the repair and reconstruction of cardiovascular defects including repairing heart valves.

CardioCel® has demonstrated superior characteristics including anti-calcification properties, beneficial mechanical properties, off the shelf ease of use and importantly allows tissue regeneration post implantation without needing to use growth factors or external stem cells.

Allied has also received the $1.9 million grant from Commercialisation Australia to progress commercialisation and launch of CardioCel®.

The company continues to pursue marketing approval for CardioCel® via a CE Mark in Europe and 510 (k) in the US as part of its global launch of the product with managing director Lee Rodne saying in June that he expected the product to be in the global markets over the next 12 months.

Herpes Simplex Virus vaccine

During the quarter, the lead vaccine program, led by Professor Ian Fraser, has entered into a Phase I clinical study.

The lead program is targeting the Herpes Simplex Virus (HSV-2) with the results scheduled for release over the next 12 months with initial results by the end of the year.

The Phase I study is important in that it will provide safety data, as well as indications on the ability of the vaccine to stimulate an immune response against the Herpes virus.

The program is aiming to develop a vaccine that can work as a therapeutic treatment as well as a prevention against HSV-2, which affects up to 1 in 6 Americans and currently has no curative treatment.

The vaccine is being developed by Professor Ian Frazer's Coridon group in which Allied has 46.8% interest.

Allied has also further invested in its DNA vaccine programs led by Professor Ian Frazer as the lead herpes vaccine advances towards clinical trials with initial results expected by the end of the year.

Analysis

Allied Healthcare’s growing revenues highlights the value of its products and are likely to grow further as upcoming milestones are met.

These include:

-    Securing approval and launch of CardioCel® in overseas markets
-    Increased used of CardioCel® in Australia
-    Results from the Herpes Phase 1 study
-    Developing further DNA vaccines

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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