Allium diabetes treatment unit attracts investment

Assaf Alperovitz, photo: Einat Levron

Allevetix raised NIS 3.2 million at a company value of NIS 35 million.

Allium Medical Ltd. (TASE: ALMD), which develops urological stents and a product for prevention of stroke-causing embolisms, has announced an additional development - a device for treating diabetes and obesity. This device was developed at Allevetix, Allium's subsidiary. The device has attracted an investment from undisclosed medical funds, in addition to an investment by Allium's management and the company's distributor in Germany.

The parties invested NIS 3.2 million in Allevetix at a company value of NIS 35 million after money. Allium held 100% of Allevetix before the deal and now holds 85%. Allium's market cap is NIS 100 million. Allium CEO Asaf Alperovitz said, "The investment constitutes a vote of confidence in Allevetix's unique system, which will provide a safe and effective alternative to bariatric surgery."

Allium began Allevetix's activity four years ago in cooperation with the National University of Singapore. The company recently began a clinical trial at a leading hospital in India and received an NIS 850,000 grant from the Singapore-Israel Industrial R&D Foundation (SIIRD). Allium hopes that following success in the clinical trial, it will be able to begin cooperation with a strategic concern in diabetes and obesity treatment. Allium also hopes to hold an IPO for Allevetix on a foreign stock exchange when the time comes.

The investment terms include a protective mechanism for a future investment round in the company: a discount of up to 25% on additional investments by the investors if the company value for the next financing round is less than NIS 72 million after money, which provides an indication of the value of the financing round that the company is aiming at.

Allevetix's kit, which is implanted in the small intestine, is undergoing human trials following success in large animal trials. The system is designed to substantially reduce absorption of sugar in the bloodstream by isolating the digested food from the mechanism for absorbing material. This is done with a sleeve fitting closely on the internal wall of the small intestine and anchored in the stomach. The solution is designed to be minimally invasive, reversible, effective, and safe to use, compared with stomach bypass and stomach shortening surgery, which is irreversible and liable to cause complications.

Published by Globes [online], Israel business news - www.globes-online.com - on June 4, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Assaf Alperovitz, photo: Einat Levron
Assaf Alperovitz, photo: Einat Levron
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