Page URL:

First IVF provider to be floated on stock market sees early share price boost

17 June 2013
Appeared in BioNews 709

The first IVF business to be listed on the stock market enjoyed a buoyant first day of trading on the Australian exchange. Shares in Virtus Health closed 8.5 percent above their starting price, which was already set at the top end of an indicative range.

Virtus is a major player in Australia's £300 million reproductive health industry with around 35 percent of all IVF cycles in the country being performed in its 33 clinics. Accordingly, the company's Initial Public Offering (IPO) was one of the largest on the Australian market in recent years.

Shares started trading at A$6.01 (£3.68) on 11 June, above the set price of A$5.68 (£3.48) given by Sydney-based Quadrant Private Equity, a principal investor in the company. The stock closed at A$6.21 (£3.80) meaning the company was now worth A$485 million (£297 million). The high demand led Quadrant to let go of its own shares in the company.

Last year, Virtus listed net profits of A$24.7 million (£15.1 million) and is expecting to slightly improve on that this year. Its forecasts predict further growth in profits to A$31.4 million (£19.2 million) next year.

Virtus' chairman, Peter Macourt, discussed the company's predicted growth in a statement prior to the float. He said that Virtus 'operates in a growing market where demand for assisted reproductive services is underpinned by long-term demographic and social trends'.

'These trends include a growing female population, increasing maternal age of first pregnancy and increasing use of assisted reproductive services as social acceptance, awareness and accessibility of these services have increased'.

Currently, Australian women can claim a certain amount for IVF cycles back from their Medicare health insurance system and between 42 and 59 percent of costs are funded by the state. Virtus has acknowledged that a change in this arrangement might affect the company's growth.

For some commentators the arrival of Virtus has been a breath of fresh air to a sluggish Australian market. 'It's a very good start and the volume's there', Melbourne-based IG Markets strategist Evan Lucas told Reuters. 'It's certainly going to make the IPO market quite a happy little place to be'.

Investors jump into Virtus float
Sydney Morning Herald |  11 June 2013
In-Vitro Clinic Virtus Health Rises 8.5% on Trading Debut
Bloomberg |  11 June 2013
IVF provider Virtus Health delivers a windfall on trading debut
The Australian |  12 June 2013
Positive Virtus float breathes life into Australian IPO market (Update)
Reuters |  11 June 2013
29 August 2017 - by Shaoni Bhattacharya 
Treatment costs for IVF may be coming down in Australia as a result of a price war between fertility clinics...
21 November 2016 - by Rikita Patel 
A number of Australian IVF clinics are potentially misleading patients about their success rates, a consumer watchdog has warned...
30 June 2014 - by Ayesha Ahmad 
An Australian fertility company has seen the price of its shares rise on the first day of its public listing on the stock market....
12 August 2013 - by Ruth Retassie 
A fertility app has been launched that will help pay for treatment for women who are unable to conceive after ten months of using the program...
17 December 2012 - by Holly Rogers 
The US biotechnology company Amgen will buy deCODE Genetics, which provides products and services for genome analysis, for $415 million...
5 November 2012 - by Cait McDonagh 
The Academic Research Partnership (ARP) has bought a majority stake in the Glasgow Centre for Reproductive Medicine (GCRM), reportedly creating the UK's largest provider of NHS and private IVF services...
21 May 2012 - by Ruth Retassie 
A London-based IVF clinic has received an investment from a private equity firm to open more fertility clinics in the UK and abroad....
30 April 2012 - by Ruth Saunders 
The standoff between Roche and Illumina, which provides services and equipment for genetic analysis, finally came to an end last week as the Swiss pharmaceuticals giant ended efforts for a hostile takeover bid...
to add a Comment.

By posting a comment you agree to abide by the BioNews terms and conditions

Syndicate this story - click here to enquire about using this story.