Medigus Ltd. (TASE:MDGS) has begun Phase I clinical trials of its device for treating Gastroesophageal Reflux Disease (GERD) at the Flinders Medical Centre in Adelaide, Australia. The company is preparing trials at other medical centers around the world.
Medigus’s product has already obtained CE Mark safety certification and can be marketed in Europe. However, the company said it could not market the device in the US until it obtains Food and Drug Administration (FDA) approval.
The device functions by stapling the upper part of the stomach around the esophagus. This is the regular treatment for GERD, but is currently done through a surgical procedure. Medigus’s treatment inserts an endoscope through the throat. The endoscope includes a camera to locate the site for the staples, and a stapler to carry out the procedure, without the need for surgery.
Medigus has an agreement with Johnson & Johnson (JNJ) to develop another product. This agreement is currently Medigus’s only source of revenue. The company posted NIS 610,000 revenue for the first quarter of 2006. Its share started trading at NIS 3.40, and has subsequently fallen to NIS 2.45, giving a company value of NIS 144 million.
Published by Globes [online], Israel business news - www.globes.co.il - on July 27, 2006
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