May 2005

Biotech hope.

Another Perth biotech has hit the stock market – Phylogica, listed late March after raising $5m in an IPO. The group was spun out of the Telethon Institute for Child Health Research. Funds raised will further research into the use of proteins with treatment applications in asthma and diabetes. The company’s most advanced product is a treatment for house dust mite allergy. Phylogica hopes to license that product to a pharmaceutical company in the next 12 months. Punters who got in on the float have done quite well – the 20c shares are trading 27-29 cents.

More MPs than GPs?

The GP shortage is getting closer and closer to town according to new Labor member for Kingsley, Judy Hughes, who said in her maiden speech to parliament that while door knocking in the northern suburbs electorate, the doctor shortage was the most raised issue with her. New patients were finding it hard to get onto the books of GPs and regular patients were waiting longer for an appointment. Not surprisingly, she was keen to attract GPs to the area but how is not clear.

Sonic consumes IPN.

Sonic Healthcare has announced a mop-up of minorities in IPN, done by a return of capital. Under the arrangements, IPN will return 7 cents capital to all shareholders other than Sonic and cancel the shares of the shareholders. This will leave Sonic as the only remaining shareholder. Whilst not technically a takeover, the result is the same – the delisting of IPN as it becomes a wholly owned Sonic subsidiary. IPN last year purchased the medical centres of Endeavour Healthcare, giving 23 practices under management in WA (and >80 nationally).

Hospital shuffle.

Ramsay Health Care has acquired Affinity Healthcare for $1.4 billion. To satisfy the ACCC, the company has also entered into a non-binding Heads of Agreement to divest 14 hospitals (including in WA) for net proceeds of $406 million, to some of the current owners of Affinity, being CVC Asia Pacific and Ironbridge Capital. Affinity currently operates 48 hospitals across metropolitan and regional Australia and three hospitals in Indonesia.The acquisition of Affinity will create Australia’s largest private hospital company.