Kyma Medical Technologies Ltd. has raised $10 million in a financing round led by Ganot Capital LLC, the venture capital arm of family firm Ganot Ltd., a leading elderly care company in the US. Kyma's first investors, Elron Electronic Industries Ltd. (TASE: ELRN) and Rafael Development Corporation (RDC) also participated in the financing round. Kyma was founded at RDC, a joint venture of Elron and Rafael Advanced Defense Systems Ltd..
"Kyma's development is in line with our approach, under which we grow our companies in the technology stage, and then seek additional partners when the companies reach the marketing stage," said Elron.
Kyma is developing a miniature radar, which is placed on the torso and uses penetrating microwaves to accurately measure lung congestion in chronic heart failure patients. Currently, there is no way to diagnose lung congestion, an indication of heart failure, in time, and patients arrive in hospital when they feel discomfort or suffer from sudden and severe weight gain, indicating the accumulation of fluids. In both cases, treatment is part of treatment for a heart attack.
Kyma's microwave technology can locate lung congestion at an earlier stage, thereby avoiding the need for hospitalization and preventing complications, which can aggravate the condition.
Kyma CEO Assaf Bernstein says that the company had several investment offers from financial parties and healthcare companies, but that Ganot Capital's offer was chosen because of its conditions and because of the strategic fit. "Ganot has 50 years' experience in treating the elderly," he says. "It operates old-age homes and it will be pleased to keep the monitoring in-house and send as few patients as possible to hospitals."
For their part, hospitals will prefer that patients with chronic heart failure receive follow-on treatment and monitoring at an old-age home or at home, because if the patient returns to the hospital that released him, the additional treatment is at the hospital's expense.
Kyma's product has EU CE Mark certification and the company is in talks with the US Food and Drug Administration (FDA) to approve the product on the basis of previous clinical trials. The company hopes to obtain FDA certification within six months.
"The proceeds will be invested in obtaining certification, initiating sales, and demonstrating our economic claim that the product can save hospitals and health insurers money," says Bernstein. He says that Ganot is a wealthy company that can support Kyma in the future, if necessary, and help it achieve financial viability.
Published by Globes [online], Israel business news - www.globes-online.com - on October 7, 2013
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