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Growing Cases of Cancer Fuel Demand for Diagnostic Technology: Sienna Cancer IPO

Growing Cases of Cancer Fuel Demand for Diagnostic Technology: Sienna Cancer IPO
Sienna Cancer Diagnostics Limited is an Australian biotechnology company focused on diagnostic technology to detect and monitor cancer.
Jun 23, 2017 By Simon Herrmann Tags: IPO, SDX

The Australian government estimates that over 130,000 new cancer cases will be diagnosed in 2017 and the risk of individuals dying from cancer by their 85th birthday will be one in five. Cancer is a diverse group of diseases in which the body’s cells become abnormal, multiply and eventual invade and damage tissues. The number of deaths from cancer in Australia increased by over 160% between 1986 and today. The World Health Organisation expects the worldwide number of new cases to rise by 70% over the next two decades.

Cancer is treated in many ways and the most suitable treatment depends on the nature and stage of the cancer.The most common treatments include chemotherapy, radiation and surgery. Diagnostic test can help provide early detection, which can lead to better outcomes following the treatment.

Sienna Cancer Diagnostics Limited is an Australian biotechnology company focused on diagnostic technology to detect and monitor cancer.

The company is currently in the stage of preparing for its IPO to list on the ASX in July in order to support its expenditure program and complete additional studies. Sienna’s ‘in vitro diagnostics’ test, (short IVD) is essentially a urine test to detect bladder cancer, and has already been registered with the Food & Drug Administration in the USA. Established distribution partners in a number of countries in Europe and the USA could provide quick access to the company’s target market. The cell and tissue diagnostics market is estimated at around $7.4 billion.

Having secured its first commercial contract in 2014, Sienna is generating early revenues, which is a validation of management’s commercialisation strategy. In addition, its patent portfolio and existing partnerships are attractive qualities. Risks include reliance on external capital, regulatory hurdles and a lack of material contracts.

Sienna is at a risky stage of its business cycle and will likely require ongoing capital injections to support the development and commercialisation of its technology. Although its existing network provides fast access to laboratories, investors need to be aware that a long-term speculative appetite is required for this IPO.

ASX Code: SDX
Shares on Offer: 30m
Listing Price: $0.20
Market Capitalisation: $37.5m
Listing Date: July 31

This article was first by published by our partner The Australian

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Simon Herrmann Author: Simon Herrmann Jun 23, 2017

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.


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