Medical devices company BioControl Medical Ltd. will spin off its epilepsy treatment business into a new company, Cerebral RX Ltd. BioControl will keep its heart attack treatment business.
The nature of BioControl's device - the CardioFit system for stimulating the vagus nerve to reduce heart failure symptoms - is also suitable for treating epilepsy, because stimulating this nerve, which runs from the brain to the intestines, in a different way can help treat epilepsy. There are already a number of devices on the market that do this.
BioControl says that its epilepsy products will effectively reduce side-effects of treatment. It adds that, despite the product's advantages, it is similar enough to existing devices that it obtained US Food and Drug Administration (FDA) and EU CE Mark marketing approval without the need for many clinical trials. The company expects to launch the product soon.
BioControl has experience with spin-offs. In 2006, it sold its urological operations to American Medical Systems Inc. (Nasdaq: AMMD) for $50 million, half in cash and half in milestone payments. Proceeds from the sale financed BioControl's operations through 2010, when it obtained a $70 million grant from Medtronic Inc. (NYSE: MDT). Medtronic also received an option to acquire BioControl for $550 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
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