Israeli medical simulation start-up Simbionix Ltd. has signed an agreement with Johnson & Johnson’s (NYSE:JNJ) unit in Japan to jointly develop simulation of laparoscopic treatment of the large intestine and rectum. Sources inform ''Globes'' that the two companies will invest $500,000 in developing the first product.
Sources added that Simbionix posted $6-7 million revenue in 2005. The medical simulation market is $100 million. The company is currently holding a $10 million financing round in order to develop marketing channels and greatly boost sales.
Simbionix develops medical simulation software and training methods. The company’s first product, GI Mentor, was launched in 2000. The company has subsequently developed and launched four simulators for cardiology, urology, percutaneous procedures, and laparoscopy. (The last simulator is expected to complement the current device, which is specifically designed for laparoscopy of the large intestine.)
Laparoscopy is a minimally invasive surgical procedure for entering abdominal cavities through small cuts in the tissue, through which scalpels and bleeding treatments, as well as an endoscope are inserted.
Johnson & Johnson is one of the world’s leading makers of minimally invasive surgical devices and training systems for the medical profession.
Simbionix CEO Gary Zamler said, “Simbionix is now working with the world’s leading companies, Johnson & Johnson, Boston Scientific (NYSE:BSX) and their subsidiaries. Companies of this size have little patience for products that are not good enough, or do meet schedules. The fact that they return to us again and again says something about the company. This is especially true of Japanese companies.” Zamler was sales director at Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) before his recent appoint as head of Simbionix.
Zamler said Simbionix had a number of competitors in Europe and the US, all of which were mid-sized companies like Simbionix. “The medical simulation sector is quite new, about six years old. In the past, it was necessary to persuade companies that there was a need for simulation, and that working on animals and cadavers did not replicate reality. Today, it’s no longer necessary to explain this, and we’ve moved on to explaining that our product line is more diversified, the interface is more user-friendly, and the simulations are more realistic.”
A few months ago, Simbionix acquired Etrinsic, an online medical training company. “This acquisition has opened a multibillion-dollar market for us,” said Zamler.
Simbionix was founded by David Barkay and Edna Chosak. Investors include Koor Corporate Venture Capital and Early Stage Partners.
Published by Globes [online], Israel business news - www.globes.co.il - on July 6, 2006
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