Ventus Medical launches $40m IPO

IPOs are picking up after a long hiatus, with US-based medical device maker Ventus Medical launching an IPO on the ASX to raise up to $40 million.

The company, which focuses on products for the treatment of sleep-disordered breathing, revealed plans to go public on the ASX under the ticker code VNT.

Ventus Medical will float up to 80 million CDIs to investors in Australia and New Zealand, and to institutional investors in Hong Kong, Singapore and the UK.

Ventus Medical's lead product is Provent Sleep Apnea Therapy. It consists of two small, single use devices applied to each nostril prior to sleep. The product then uses patients' own breathing to keep their airways open during sleep.

Provent has been listed with the TGA, approved by the US FDA and received CE Mark approval in Europe.

The company's second product, a treatment for snoring, will be launched in the US in the second half of 2012.

Ventus Medical CEO Peter Wyles said Australia was a “very important market” for the company.

“We are excited to be listing in Australia, the birthplace of sleep medicine,” he said.

An estimated 13.5% of Australian adults suffer from obstructive sleep apnea, and sleep loss and sleep disorders are estimated to have cost the Australian economy $5.1 billion in health costs and lost productivity in 2010.

By listing on the ASX, the company is gaining a greater foothold in a market dominated by the domestic sleep-disorder medical device giant, ResMed, which recently pushed the other direction and has made inroads into the US market.