Press release: CapMan Life Science portfolio company Inion Oy
successfully completes an Initial Public Offering (IPO) on the London
Stock Exchange
(26. Nov 2004) - Inion Oy today announced that it has successfully
completed an Initial Public Offering with a listing on the London Stock
Exchange where it raised net proceeds of £30 million (€43 million). The
shares being sold in the IPO are being issued at 130 pence per share,
giving the Company a market capitalization of approximately £90 million (€129
million) immediately after the IPO. Swedestart Life Science fund, managed
by CapMan, did not sell its Inion shares in connection with the IPO but
continues in the company as an active owner with approx. 7 % ownership.
Inion’s IPO has no effect on CapMan’s result for 2004 or significant
effect on CapMan’s result in the coming years, because CapMan’s share
of the possible carried interest income generated by Swedestart Life
science fund is only 10%.
The IPO of Inion is a remarkable result in otherwise difficult
international markets. It is the first Scandinavian medical technology IPO
in more than three years and was oversubscribed more than 6 times. Medical
technology - as a sub-segment of the general life science industry - is
increasingly attracting the interest of both local and international
venture capital investors. Although long ignored by investors who were
focusing on biotech and drug discovery investments, medical technology has
shown a remarkable comeback in recent years. Investors have come to
understand that medical technology companies often offer lower risk,
shorter time to market, and also relatively attractive returns.
CapMan Life Science is the leading medical technology investor in
Northern Europe focusing on early-stage investments in advanced medical
technology companies. With a unique focus on medical technology companies,
CapMan has built a reputation as the only dedicated medical technology
investor in Europe.
One of CapMan Life Science portfolio’s star performers is Inion.
Inion is a Finnish medical device company that focuses on the development
and commercialization of novel biodegradable polymer implants for
orthopedic fixation. Biodegradable implants are the perfect tool for
orthopedic surgeons when a fracture has to be stabilized. Where existing
titanium implants are left inside the patients for years after surgery,
biodegradable implants remain only as long as needed – until the
fracture has healed – after which they slowly disappear leaving the
healed body without foreign objects. For children this is particularly
important. After an initial healing period, they often undergo a second
operation to remove titanium implants that would otherwise obstruct the
natural bone growth of the child. With the biodegradable implants from
Inion this is no longer necessary.
Since its incorporation in early 2000, Inion has developed and launched
a number of FDA approved and CE marked implants in four specific treatment
areas: cranio-maxillofacial or CMF (face and jaw), dental surgery, sports
medicine and orthopedic trauma. Inion is also developing a number of other
implants, including an additional range of products for spinal
indications.
“The IPO of Inion is an important milestone in company’s life”,
says Björn Nordenvall, Investment Director with CapMan Life Science, “With
this event the company joins a major international market place and gains
access to a large number of international investors and funds. The
proceeds from this offering will carry the company to its next level and
help it to strengthen its position in a very competitive industry. During
the last three years, after our initial investment, the company has
established a winning strategy that has boosted its world-class products
to the international markets. We at CapMan are happy to see Inion taking
its next steps in front of a larger audience.”
Inion’s largest owners prior the IPO were private equity investors
HealthCap, Biofund, Bank von Ernst, the company’s founders and CapMan
fund Swedestart Life Science. None of the existing Inion’s investors
sold shares in the IPO. “We will continue to support and closely follow
Inions development as we remain an active investor after the IPO”,
concludes Björn Nordenvall.
The success of the Inion IPO is the latest result in a string of good
news for CapMan Life Science.
Medicon Valley-based Jolife, a CapMan’s portfolio company, recently
closed an extensive world-wide distribution agreement with Medtronic Inc,
the US-based medical technology conglomerate. The main product of Jolife
is a device that can provide automatic heart compression for people that
are struck by cardiac arrest. In ambulances this device has increased the
survival rate of cardiac arrest victims from 3 to 16%. CapMan funds
invested in Jolife in 2003.
Another of CapMan’s portfolio companies, Entific Medical Systems, has
developed a hearing device that is implanted directly into the bone behind
the ear of people that suffer from hearing loss on the outer ear. This
innovative device transmits sounds through the bone and can even restore
hearing in people with single-sided deafness. CapMan funds invested in
1999 and last year the company reached €18 million in revenues with €2.2
million in profit. A solid financial success for a start-up company.
For further information, please contact:
CapMan (www.capman.com)
Sweden: Björn Nordenvall, Investment Director, CapMan, tel: +46 8 545 854
86
Finland: Yrjö E K Wichmann, Investment Director, CapMan, tel: +358 9 6155
8357
Denmark: Morten Bro Nielsen, Investment Director, CapMan, tel: +45 2964
7727
Inion Oy (www.inion.com)
Dr Auvo Kaikkonen, Chief Executive Officer, Inion, tel: +358 3 230
6616
Jari Kortesluoma, Chief Financial Officer, Inion, tel: +358 3 230 6616
CapMan Group
CapMan is one of the leading private equity investors in the Nordic
countries and specializes in mid-sized buyouts in various industry
sectors, technology investments in the IT and telecommunications sectors
and investments in life science companies. The CapMan team comprises
around 80 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan
manages/advises funds with approx. EUR 1.2 billion in total capital. To
date, the funds managed by CapMan have invested in 146 companies in the
Nordic countries and exited from 67 companies. The latest investments are
made in Finnish Tokmanni Oy, Swedish Gammadata AB, Norwegian Locus AS and
Danish Anhydro Group. CapMan Plc is listed on the Main List of the
Helsinki Stock Exchange.
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