Sources inform ''Globes'' that Israeli start-up Uri-Dent Ltd., which has developed a patented crown for use on children’s teeth, was sold yesterday to US dental equipment supplier Dentsply International, Inc. (Nasdaq: XRAY) in a deal worth tens of millions of dollars over ten years. Uri-Dent was founded as an incubator company at Ashkelon Technological Industries (ATI). It graduated from the incubator eighteen months ago, but remained under its auspices while the talks for its sale were ongoing. The company obtained a total of $400,000 in investment, of which $300,000 was provided by the Chief Scientist and the rest by private investors.
Uri-Dent was founded in 2003 by Dr. Uri Zilberman, director of the pediatric dental unit at the Barzilai Medical center in Ashkelon. The company has developed polymer crowns for use on children who have developed large cavities in their milk teeth. “The only type of crowns on the market today, are those made of stainless steel,” explains Zilberman. “3m Corporation (NYSE: MMM) controls 97% of the market for this product, thereby giving it a monopoly. There are two types of problems with these crowns. There is a problem aesthetically because of the grey color, and there is also a medical problem since they contain chrome-nickel which can cause allergies. A substantial portion of the population is sensitive to nickel, and it is known that these crowns release it inside patients’ mouths.
”Uri-Dent’s crowns are unique in that they are made of durable polymer instead of metal and match the color of the tooth. We use a type of polymer that is used for medical purposes and has even been approved for use in implants. It is aesthetic, meaning it matches the natural color of teeth, and is also flexible, a property that enables it to “fit” on the tooth and “hug” it around the shoulders.”
ATI managing director David Wazana, who realized the immense potential for Uri-Dent’s development has been conducting negotiations for the sale of the company for the last eighteen months. “Dentsply is a public US company with a market cap of $4.7 billion, and sales of almost $1.5 billion,” he says. “The deal is spread over 10 years in accordance with the duration of the patent. Part of the payment will be made immediately with the rest paid in quarterly installments, thereby enabling further product development on the basis of the patent. Dentsply has also set up a local subsidiary called Dentsply Israel, which will commence activities in one month’s time.”
Located in Ashkelon’s northern industrial zone, ATI is active in the medical development, water technology, and communications fields. Wazana claims that four more of ATI’s companies of a similar size to Uri-Dent are likely to make exits within a year. These will either be sold or floated on Nasdaq or London’s Alternative Investment Market (AIM). The companies engage in medical equipment manufacturing, energy and communications technologies.
Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2006
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