Pontifax has invested NIS 10 million in MCS Medical Compression Systems (DBN) Ltd. (TASE:MDCL), which is developing a device for the prevention of blood clots in limbs following orthopedic surgery. MCS will allot to Ponifax III Fund four million shares at NIS 2.50 per share and 1.2 million warrants, exercisable for 1.2 million shares, giving it an 8.7% stake in the company, and 11% stake if all the warrants are exercised.
MCS posted $4 million revenue for the first quarter of 2012, 11% more than for the corresponding quarter of 2011. Its operating and net loss were both $1.3 million, and it expects to continue losing money as it builds its market.
MCS is Pontifax's second investment so far this year in a public medical devices company, following a NIS 5.6 million investment in InsuLine Medical Ltd. (TASE: INSL). The investments suggest that the fund sees an upside at companies' current share prices, even though some companies already have sales.
"The investment shows that the device interests people in the pharmaceutical industry, and knows the drugs that we compete against," said MCS CEO Adi Dagan. "If our company succeeds, there will be no place for drugs for the prevention of post-surgical embolism."
MCS's share price rose 3.4% today to NIS 2.57, giving a market cap of NIS 113 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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