Biomed co Medgenics continues to move toward Wall Street

The less than stellar experience of Israeli biomed companies in the US capital market isn't holding back biotech company Medgenics (AIM: MEDG). In November, the company filed a draft prospectus for a NYSE offering, as it looked to raise up to $19 million.

This morning the company took another step, as it published an updated prospectus, giving a range of prices and the company value at which the offering would take place. Medgenics currently trades on London's AIM, where it has lost about a fifth of its offering value.

Medgenics looks to offer 2.5 million shares at a price of $5-7 per share, as it hopes to raise $12.5-17.5 million.

The company valuation in the offering will be $45-62 million. That is about double the company's current valuation in London.

Medgenics develops biopump implants made from the patient's own tissue to produce and deliver active protein therapy steadily over a sustained period to treat chronic diseases such as anemia and hepatitis C.

Published by Globes [online], Israel business news - www.globes-online.com - on February 17, 2011