Galilee Medical of Yoqne’am has raised $5 million by private placement, at a value of $20 million after money. This is a second capital raising round out of the moneys of Polaris and Clal’s Infinity fund.
Galil Medical was founded in March 1997, and raised $3 million from ESC. The company is a spin-off of a military technology developed by Rafael (Israel Weapons Development Authority) and converted for civilian use.
The company is owned by RDC (in which Rafael is a partner, and which grants companies under its control the right to convert military technologies to civilian use in exchange for shares), by ESC and the Polaris and Infinity funds. Each of the bodies, including the two funds jointly, holds about one third of the company’s shares. The balance, in the form of options, is held by company employees.
Galil Medical develops and manufactures minimal invasive surgery equipment. Growths or tissues are usually removed by the deep freeze method. The equipment is capable of removing malignant or benign growths, or tissues such as tonsils in various parts of the body: brain, liver, bones, oral cavity and prostate.
Since eye contact is not made with the body part being treated, the equipment is connected to various imaging devices, such as CT, MRI or ultrasound. The company also develops interfaces between the equipment and the various imaging devices.
The company started to market the systems last year. The cost of a system of its manufacture ranges from tens of thousands to two hundred thousand dollars. The company
enjoys approved enterprise status. It has a sales office in Boston and its customers include hospitals such as Hadassah Ein Kerem, Ichilov and Rambam (Maimonides) in Israel, and University Hospital of Harvard and other hospitals in North America and Europe.
Published by Israel's Business Arena August 23, 1999