BiolineRX raises $24m in Nasdaq offering
Abbot Laboratories and Medtronics invested in the fund, which invests in medical device start ups founded by serial entrepreneur Yossi Gross.
Sources inform ''Globes'' that Rainbow Medical Ltd., which was established on the basis of medical devices companies founded by serial entrepreneur Yossi Gross, is raising $50 million in its second financing round. Two of Rainbow's strategic investors Medtronics Inc. (NYSE: MDT) and Abbot Laboratories Inc. (NYSE: ABT) are investing in the round, and one of them has already transferred the money.
Two other strategic investors are also participating in the round, along with GlenRock Israel of Leon Recanati, one of Rainbow's founders.
Rainbow CEO Efi Cohen-Arazi told "Globes", "We believe that this is the last financing round we will need, before we are financed by exits and dividends from our current companies. We're not exactly a venture capital fund, but an operative investment company that establishes companies on the basis of our patents, a model that exists nowhere else in the world."
Rainbow, founded in 2007, has twelve portfolio companies, eight of which are conducting human clinical trials of their products, and one of which has obtained EU CE Mark.
"We are always the sole initial investor," says Cohen-Arazi. "This saves the companies time and effort in navigating between investors and in protracted board meetings. We serve in the management of all of the companies, offering a range of services, including regulation, financial management, and legal advice. In this way, we can go far on a small investment."
Rainbow invests $3-5 million in each company, with the goal of reaching the human clinical trial stage. "At this point, we look for support and value support from third parties," says Cohen-Arazi.
Rainbow COO Gilad Lorberbaum told "Globes", "We only found companies on the basis of definite needs and with partners, research institutes, and hospitals with which we have close but less formal relations." He adds that Rainbow's strategic partners do not directly invest in its portfolio companies, and have no agreements with them. In future, some portfolio companies may be founded with a strategic partner from the beginning.
Cohen-Arazi said that most of the clinical trials by the portfolio companies are conducted in Europe. "This is because of Israel's Ministry of Health. Israeli hospitals cooperate, but going through the Ministry of Health is so hard that it's better to conduct a trial in Europe. I've been told, 'Do a trial here and then apply for CE Mark', but at that stage it's already possible to conduct trials in Europe.
"Rainbow also has extensive development operations in the US, headed by Ron Tavlin, a veteran US venture capitalist, from an office in Minneapolis.
Rainbow has 12 portfolio companies, and plans to reach 15. "All the products are complex and require clinical trials," says Yossi Gross. "We operate in a range of fields, blood pressure, diabetes, dentistry, vision, obesity, and Alzheimer."
The portfolio companies include:
- Enopace Biomedical Ltd., which is developing a minimally invasive, implantable endovascular neuro-stimulator for heart failure patients, and which recently raised $7 million from Italy's Sorin Group SpA (BIT: SORN);
- Vascular Dynamics Inc., which is an implantable stent-like device to treat hypertension, and which raised $13.5 million from US funds in February;
- Maxillent Ltd., which is developing a minimally invasive, sinus lift implant;
- Nano Retina Inc., which is developing an artificial retinal prosthesis for sight restoration, and is currently raising $10 million;
- GluSense Ltd., which is developing an accurate, long-term, minimally invasive, implantable, continuous glucose sensor for diabetics;
- BlueWind Medical Ltd., which is developing a novel wireless neuro-stimulation device for the treatment of peripheral neuropathic pain.
Published by Globes [online], Israel business news - www.globes-online.com - on June 3, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
You comment was recieved and soon will be published.
Load more comments
Three months ago, the company announced promising preliminary clinical trial results.
Teva VP Ika Abravanel resigns
Abravanel's is the first senior departure from Teva since Erez Vigodman became CEO.
FDA approves Pluristem cell production facility
Pluristem's Haifa plant can produce 150,000 doses of PLX cells annually.
Desheh: Splitting Teva will not create value
Teva CFO Eyal Desheh says Teva's tight integration means that a split makes no sense.
InsuLine expanding in Europe
24Care will distribute the company's InsuPad product in the Netherlands and Belgium.
Teva launches generic breast cancer, osteoporosis drug
Teva has 180 days of marketing exclusivity for generic Evista, which had 2013 US sales of $824 million.
BiolineRX raising $21m in Nasdaq secondary offering
The company will use the proceeds to develop leukemia and celiac disease drugs.
MediWound sets terms for $92m Nasdaq IPO
The burns and wounds treatment developer's offering is at a value of $350-370 million.
Opko losses triple
CEO Phillip Frost: From an R&D perspective, all our programs are progressing.
D-Pharm doubles on good interim stroke study results
The Phase IIa trial interim results found the company's drug was safe for cerebral strokes.
Perrigo selling OTC drugs through Amazon
Perrigo: It is also a platform for obtaining good information about consumer behavior.
Teva launches bipolar, schizophrenia treatment
Adasuve is the first orally inhaled medicine for the acute treatment of agitation in schizophrenia and bipolar I disorder.
Perrigo acquires Aspen Global products for $51m
Perrigo bought value-brand OTC products sold in Australia and New Zealand.
Galmed updates $30m Nasdaq IPO prospectus
The liver disease drug developer will issue shares at a company value of $132 million.
Enzymotec shareholders raise $131m in offer to sell
Kibbutz Ma'anit's Galam reportedly sold shares for $46 million.
Compugen raises $63m, Magic $51m
The two companies held secondary offerings on Nasdaq on the basis of shelf prospectuses.
If Rose Fostanes played basketball
Reforms in regulations for foreign caregivers are welcome, but don't go far enough.
Private treatment kills public healthcare
If the German Committee validates private healthcare, it will be the last nail in public healthcare's coffin, argues Prof Dani Filc.
Reducing the number of polyps that colonoscopies miss
EndoChoice's Israel development center has devised an endoscope with a 330-degree arc.
Neopharm moves into orphan drugs
The company, better known for marketing others' products, has been quietly building up its innovative capacity, as VP Tal Fuhrer relates..
Merck Serono Israel incubator nurtures early stage projects
Merck Germany head of pharmaceuticals Dr. Stefan Oschmann says R&D is enjoying a renaissance at big pharma companies.
Israeli biomed cos bring in US CEOs
"Globes" speaks to 3 US CEOs appointed to boost marketing at TASE traded medical device companies.
Alcobra has had two successful Nasdaq offerings this year as it develops an ADHD treatment with fewer side effects.
Restructuring can help Teva's Copaxone woes
Avishai Ovadia argues that Teva can offset falling Copaxone sales by reducing overall company costs.
Enabling diabetes patients to sleep soundly
Excess insulin levels can be fatal when they occur at night. NightSense aims to remove the fear.