Andrew Forrest-backed biotech lists on ASX

Mining billionaire Andrew Forrest is set to debut a new biomedical entity on the ASX just weeks before he is due to step down as chief of Fortescue Metals.

The move comes after biotech firm BioMD won shareholder approval to gain a 90% stake in Allied Medical last week. Forrest currently has the biggest stake in Allied, owning 46% of the company.

The deal is essentially a reverse takeover, with Allied shareholders now controlling 70% of BioMD in a deal worth over $20 million.

The company announced yesterday a major restructure in management, including the appointment of a new chairman, managing director and other executives.

Christopher Catlow, Graeme Rowley, Lee Rodne and Jet Soedirdja have been appointed as directors to the BioMD board, while BioMD chairman Robert Scott has said that he will resign in his role as chairman.

Catlow, the original chief financial officer of Fortescue, will take his place.

Rowley, who was formerly on the Allied Medical board, was until recently also an executive director at Fortescue. He will serve as a non-executive director, as well as continuing to serve as a non-executive director for Fortescue.

Soedirdja is a director of biotech firm Avexa, and is also an investment advisor at Bell Ptoter Securities. He will also serve as a non-executive director.

Rodne, former Allied Medical chief executive who has previously worked as the director and vice president of US firm Healthcare Consulting & Distribution Company, will act as managing director. He has been with the group since 2005.

Both Robert Towner and Michael Bennett will continue to serve as executive directors.

BioMD is currently working on a soft tissue patch product called CardioCel which is designed to heal holes in the heart. The company hopes that it will be commercialised within the next year or so.