Ex Kiwi research firm bound for ASX

By LIAM DANN

Despite becoming the biotech sector equivalent of Russell Crowe and Phar Lap, former New Zealand company Living Cell Technologies (LCT) is hoping to attract interest from local investors when it lists on the ASX next month.

Originally called Diatranz, the company - which is developing a new way to treat diabetes - moved to Australia two years ago after the NZ Government refused to approve trials of its novel technique for transplanting insulin-producing pig cells into people with diabetes.

LCT has since widened the applications for its cell transplant technology and now has patents on treatments for Huntington's Disease and haemophilia.

Media across the Tasman are tipping the company as an exciting Australian biotech prospect.

Despite that, managing director Dr Paul Tan says he is hoping Kiwis will take up the opportunity to invest in the float, which closes on Wednesday.

LCT plans to raise about $5 million through a rights issue, which will allow existing shareholders to apply for one share for every two shares held. Another $2.2 million will be raised through the offer of 10 million shares to the public.

Shares are being issued at 20Ac each. After listing, the company will have a market capitalisation of nearly $20 million.

This will be used to complete pre-clinical trials of its three patented products and to prepare its application for the regulatory approval needed to begin human clinical trials.

Tan said he hoped the diabetes treatment would be ready to begin US Food and Drug Administration trials by the end of next year.

Response to the offer across the Tasman had been enormous, he said, with positive feedback from biotech analysts.

LCT retains a research and development facility in Auckland and one of its key shareholders is Warehouse founder Stephen Tindall.

It was co-founded in 1987 by chief executive David Collinson, who began researching diabetes treatments after his son was diagnosed as a sufferer.