MN Firm Osprey Medical Raises $20M in Australian IPO

The medical device company will use the funds to launch its product in Europe and to conduct a clinical trial in the United States.

Eden Prairie-based medical device firm Osprey Medical announced Tuesday that it has completed an initial public offering (IPO) in Australia and raised in Australian dollars an amount that equates to a little more than $20 million.

The company launched its IPO in early March, offering 50 million Chess Depository Interests (CDIs) for about 40 cents each. CDIs are a type of security used by the Australian Securities Exchange (ASX) to allow international companies to trade on the local market. The company expects to start trading on the ASX in early May.

Osprey Medical developed a device called the Cincor System that helps prevent kidney damage during heart procedures such as angioplasty and stenting. The technology was developed at the Baker IDI Heart and Diabetes Institute in Melbourne, Australia.

When the company started offering its CDIs, Osprey Medical spokesman Doug Schoenberg told Twin Cities Business that the company decided to go public in Australia because 100 percent of the company's funding so far has come from venture capital firms in Australia.

“It seemed like a natural progression for us to start trading on the Australian market,” Schoenberg said at the time, adding that the company doesn't have plans to trade on a U.S. exchange in the near future.

Osprey was founded in 2005 and has 10 employees. Its device has received regulatory approval to be sold in Europe, and the company plans to start selling its device there later this year.

Most of the funds raised through the IPO will be used for the European launch and to conduct a clinical trial in the United States, which is also planned to start this year. The company hopes to have regulatory approval to sell its device in the United States by 2014.