Koligo Therapeutics (ASX: KOL), a leading regenerative medicine and 3D bio-printing company, plans to list on the Australian Securities Exchange at the end of March via an Initial Public Offering (IPO).
Koligo is the only company in the world dedicated to the wide distribution of pancreatic islets – the cells that make insulin to regulate blood sugar – for treating pancreatitis. It is also developing and commercialising a range of 3D bio-printed tissue and other regenerative medicine products to help address serious conditions such as diabetes, liver failure, neurological diseases, metabolic disorders, and genetic disorders.
Koligo hopes to raise up to A$7m at 20c a share from the IPO, creating a market value of about A$22m.
Funds raised will be used to increase manufacturing capacity, sales and marketing into targeted hospitals so they can provide treatment in collaboration with Koligo, harness international growth opportunities and develop the patented 3D-V technology platform and product pipeline.
Matthew Lehman, Chief Executive Officer, said, “Our listing on the ASX will accelerate Koligo’s growth and improve our ability to make a real difference in patients’ lives who suffer these debilitating conditions. The local market understands the value these companies provide. We are heartened by the success of other regenerative medicine and cell therapy companies on the ASX, such as Exopharm, Polynovo and Cynata.”
Already producing revenue with products qualified for sale in the US
Unlike most biotechnology companies, Koligo is already at revenue stage with a product Kyslecel™ qualified for sale in the United States and generating A$1.6m revenue in the first 14 months from a limited number of initial hospital customers.
Mr Lehman explains, “Kyslecel™ is an autologous (using the patient’s own cells) pancreatic islet cell transplant therapy used to treat chronic or recurrent acute pancreatitis, a debilitating and painful condition with few effective treatment options. Koligo works with qualified partner hospitals to remove a patient’s pancreas. It is transported to Koligo’s FDA-registered labs in Louisville, Kentucky, where the patient’s islets are isolated and prepared into Kyslecel™. The Kyslecel™ is then transported back to the patient’s hospital to be infused back into the patient’s liver.”
“The location of the Koligo lab is key as Louisville, Kentucky is also the home of the UPS Worldport hub with 318 flights daily and the capability for critical shipments of Human Cells, Tissues, and Cellular and Tissue-Based Products (HCTPs). Based on initial success of Kyslecel™, Koligo will scale production and distribution to deliver patients access to this procedure at more hospitals across the United States.”
Koligo estimates the annual addressable market for Kyslecel™ in the United States to be A$300m. Koligo aims to launch Kyslecel V2.0 in mid-2019. This will have an extended shelf life allowing longer transport times to a wider region and potential international operations (subject to regulatory requirements). Koligo believes the US market size for Kyslecel V2.0 is A$600m per year. India and China have large numbers of pancreatitis sufferers, and Koligo plans to enter these and other markets.
Patented 3D bio-printing
Koiligo is developing a pipeline of regenerative medicine products utilising a patented 3D-V bio-printing platform and will be the only 3D bio-printing business on the ASX, and one of very few publicly-traded 3D bio-printing companies globally.
Koligo will transform human cell and tissue transplant with our 3D-V bio-printing. We will create 3D biodegrable bio-printed spheroids which contain a patient’s stromal vascular fraction cells and/ or micro vascular fragments and pancreas islets. The 3D structure allows better oxygen and blood flow for more effective grafting of transplants. These spheroid ‘scaffolds’ allow improved function of the cell or tissue after transplant and safely biodegrade.”
“With this 3D-V bio-printing technology we will engineer tissue products for the treatment of pancreatitis, type 1 diabetes, other pancreatic diseases, liver failure, neurological diseases, metabolic disorders, and genetic disorders. Each is a multi-billion-dollar market.”
A leading team of specialists and experts
Koligo is headed by CEO Matthew Lehman with nearly 20 years’ executive experience at biotechnology and pharmaceutical companies, including CEO of Prima BioMed (ASX:PRR; NASDAQ:PBMD) (now Immutep (ASX:IMM; NASDAQ:IMMP)). The board and management team include high-profile industry leaders:
- Stuart Williams Phd, Executive Director and Chief Technology Officer, an internationally recognised expert in regenerative medicine and the Endowed Chair of Cardiovascular Innovation and Director of the Bioficial Organs Program at the University of Louisville;
- Balamurugan N. Appakalai PhD, Chief of Manufacturing, over 20 years’ experience and internationally recognized for his expertise in islet isolation, with 100+ peer reviewed articles and presentations. Director of Islet Cell Lab at Cardiovascular Innovation Institute, Louisville; and
- Peter James, with over 30 years’ public company experience as Chair, Non-Executive Director and Chief Executive Officer across a range of publicly listed and private companies, including iiNet, nearmap (ASX:NEA), DroneShield (ASX:DRO), and Keytone (ASX:KTD).
Mr Lehman said, “Unlike most biotechnology companies, we have a product on sale which has already generated $1.6m in sales – proving our ability to commercialise a regenerative medicine product. With investor help through our ASX listing we can make this product available across the United States with the development of Kyslecel V2.0 by mid-2019. This will open broader US market and overseas options. Our extensive and patented intellectual property, which includes a unique 3D bio-printing platform, enables us to conduct development of products for a wide range of conditions, including multi-billion-dollar markets like diabetes, neurological diseases, metabolic disorders, and others.”
To access a copy of the IPO Prospectus, go to: