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Nothing new, but we got a run in the Oz today -- some good publicity leading into the listing

Neurotech seeks cash for device to manage autism

• SIMON HERMANN
• The Australian
• 12:00AM October 11, 2016

It is estimated that one in 68 children is affected by autism and to date the condition has no known cure. Autism affects the way individuals behave in social interactions as well as their ability to learn and communicate. The goal of medical treatments is to reduce symptoms to improve the lifestyle and lower the risk of additional development delays.
Neurotech International is a neuroscience-focused technology company that aims to commercialise its Mente Autism technology.
Mente is a wearable medical device that assists in managing the symptoms of autism in children. The neuro-device market is one of the fastest-growing sectors in the medical device industry and is expected to reach $US13.9 billion in revenue by 2019.
The company aims to raise $7m in a conventional IPO to fund research and development for its technology and accelerate sales and marketing efforts. Neurotech’s predecessor product has already had initial sales across Europe, the Middle East and Asia, with approximately 350 units being sold to date.
Neurotech has executed an initial distribution agreement to sell a minimum of 8700 units via a distribution partner in Italy over the next three years.
While the company is not expected to reach profitability in the short term, the agreement provides the company with a near-term revenue opportunity. In mid 2017, results from the US clinical trials are expected, which would be a major validation signal for the company and could assist Neurotech to apply for FDA clearance and enter the large US market.
However, the Mente technology remains to be validated in a commercial setting and there is no guarantee that the company will be able to commercialise its product and reach profitability.
With only one material contract in place, termination of the agreement would adversely impact Neurotech’s financial performance.
Other hurdles include reliance on external capital and lack of patents.
The IPO is speculative but the upcoming clinical trial in the US could be a near-term catalyst and significantly enhance the profile of Neurotech if successful
Simon Hermann is an analyst at wise-owl.com
ASX Code: NTI
Shares on Offer: 35 million
Listing Price: $0.20
Market Cap: $17.6m
Listing Date: October 17