Thursday, October 08, 2009

AGA Medical Holdings | Back in the Queue

AGA Medical (Plymouth, MN) developer of interventional devices for the minimally invasive treatment of structural heart defects and peripheral vascular disorders, first filed with the intention to reach the public market in 2008 (‘nuff said), now on the heels of what is shaping up to be, dare one say, an active 2H09 life science IPO market with three entities out [Mead Johnson Nutrition (NYSE: MJN), Cumberland Pharma (NASDAQ: CPIX) and Talecris (NASDAQ: TLCR)] and now three in the filed queue planning to get out prior to year’s end. As the first snowfall is expected today in Boulder, CO it is feeling uncharacteristically warm and fuzzy inside – can ‘it’ thaw concurrent with old man winter settling in?

The AGA deal again makes sense, that is generally speaking…a pattern is emerging where these entities who have surfaced on the public markets are commercial-stage, certainly not pre-clinical or early-clinical but Phase IIb or later. It sounds as if AGA had revenue circa 2008 in the $180M range with a positive net income to boot. The offering is expected to be priced in the $19 to $21 range on 13.75M shares therefore raising an anticipated $260M to $289M less underwriter expenses. The deal is expected to be managed by Bank of America (NYSE: BAC), Citigroup (NYSE: C), Deutsche Bank (NYSE: DB), Leernik Swann, Wells Fargo (NYSE: WFC) and Natixis Bleichroeder.

Founded in 1995 by Dr. Kurt Amplatz, a former University of Minnesota professor and researcher, AGA Medical’s range of Amplatzer® products help improve patient outcomes, reduce length of hospital stay and accelerate patient recovery times. Amplatzer® products advanced the treatment of the most common congenital “holes in the heart,” such as atrial septal defects, patent foramen ovale and ventricular septal defects. More than 1,500 articles supporting the benefits of Amplatzer® products have been published. AGA Medical markets Amplatzer® products in 101 countries worldwide.

Note: According to the [C]LSDF 2009 Biopharma IPO Watch List confidence in the new issues appears to be maintained as the bottom has not dropped out post issuance; an additional encouraging sign of the receptivity of the markets.

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