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Heard on the Street: Cardio3 announces plans for IPO

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Cardio3 Biosciences, the Belgium-based biotech firm building a manufacturing facility in downtown Rochester, has announced plans to issue stock in the U.S.

Cardio3 BioSciences , which works closely with Mayo Clinicand has its U.S. headquarters in Boston, Mass., confidentially filed "a draft registration statement" with the U.S. Securities and Exchange Commission this week about its intention.

The eight-year-old regenerative medicine company already is publicly listed on the European stock markets of NYSE Euronext Brussels and NYSE Euronext Paris. However, issuing an IPO in the U.S. would significantly boost its finances and garner the firm a lot more attention.

Such a move could benefit Mayo Clinic, which owned 2.69 percent of Cardio3 as of March 3. Mayo Clinic first acquired equity in Cardio3 in 2007, when it licensed stem-cell research by Mayo Clinic's Dr. Andre Terzicand Dr. Atta Behfar. Its cardiopoiesis technology repairs patients' hearts by re-programming their own stem cells to regenerate cardiac tissue.

This week's statement stressed the possibility of a Cardio3 IPO still is in the very early stages.

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"The timing, number of shares and price of the proposed offering have not yet been determined," according to the firm.

This filing follows last week's financial report that showed it lost $18.1 million in 2014, up from the $15.9 million it lost in 2013.

That annual report also highlighted "a nonexclusive preferred access agreement" signed with Mayo Clinic in October that cleared the way for Cardio3 to build a facility in the City of Rochester's Minnesota BioBusiness Centerbuilding.

"With this agreement, Cardio3 BioSciences agreed to give preferred consideration for Rochester, Minn., to the U.S. to build a manufacturing facility for the production of C-Cure, at a facility located adjacent to the campus of the Mayo Clinic, and the Mayo Clinic agreed to periodically review with Cardio3 BioSciences its portfolio of regenerative-medicine technologies, including in the areas of cardiology and oncology, with a view toward future potential licensing," according to the Cardio3 report. — Jeff Kiger

Related Topics: FINANCEMAYO CLINIC
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