Teva VP Ika Abravanel resigns
The bronchial device developer, based in Herzliya, has raised $160 million since it was founded in 1995.
Covidien plc (NYSE: COV) today announced that it is acquiring bronchial tubes endoscope maker superDimension Ltd. for about $300 million. Under the deal, Herzliya-based superDimension, also may be eligible for future milestone payments.
Covidien is headquartered in Dublin and operates from Massachusetts.
superDimension has raised $160 million since its was founded in 1995 from OrbiMed Advisors LLC, Pitango Venture Capital, Medica Venture Partner, Gemini Israel Funds, Concord Ventures, Evergreen Venture Partners, Niztanim, and Oxford Bioscience, as well as from strategic investors Covidien Ventures, Boston Scientific Inc. (NYSE: BSX), and Pfizer Inc. (NYSE: PFE; LSE: PFZ). OrbiMed is superDimension's largest shareholder with a 26% stake, for which it invested $27-28 million. Thus OrbiMed will see a 167% return on its investment.
With annual sales of $30 million, superDimension’s i-Logic System uses Electromagnetic Navigation Bronchoscopy to provide minimally invasive access to lesions deep in the lungs as well as mediastinal lymph nodes. By extending the reach of conventional bronchoscopes, the i-Logic System facilitates more effective evaluation of lung lesions, potentially enabling safer, more effective tissue biopsies.
superDimension's Electromagnetic Navigation Bronchoscopy receives full insurance indemnification for procedures. The device is mostly used to diagnose lung cancer.
The company was founded in 1995 on the basis of navigation technology originally developed for planes, and subsequently used in toys. The company adapted it for navigation within the body, developing an endoscope for the bronchial tubes, for which there is no other available solution.
The system includes a sensor fitted at the tip of a catheter, which sends signals to three magnets placed on the patient's chest, and a magnetic sheet on which the patient lies. This creates a kind of GPS system for positioning the sensor within the lung. The device can be precisely sent to the suspected area, such as a tumor, take a biopsy, and mark the spot for subsequent precision radiation to reduce damage to surrounding healthy tissue.
Covidien expects to close the deal in the second quarter of 2012.
OrbiMed general partner Jonathan Silverstein who led the fund's investment in superDimesion said, "This is probably one of the largest acquisitions of an Israeli medical device company after Biosense, which was acquired for $400 million, together with Mediguide and Ventor ($325 million and $300 million respectively). Expected milestone payments will position us in an even better place. This is one of the 20 best ever medical device company acquisitions.
Silverstein expects superDimension's revenue to reach $50 million in 2012.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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