Sources inform ''Globes'' that Ovalum Ltd., which is developing a minimally invasive method for clearing completely blocked arteries, has raised $3.4 million at a company value of $23 million after money. The round was led by MediTech Advisors LLC, run by managing partner Dr. Morry Blumenfeld and Eitan Machover and with the participation of Pontifax Fund, Ziegler Meditech Equity Partners, and Smithfield. The sources added that Ovalum raised $1 million in a round led by MediTech last December. Pontifax and Smithfield both participated in that round, too.
Ovalum was founded in 2005 by CEO Noam Shamay and CFO Eitan Finkelstein. Shamay previously served as R&D team leader at Medinol Ltd.. Finkelstein is a metallurgical engineer. Ovalum is developing a method for treating completely blocked coronary and limb arteries.
Shamary says, “When arteries are partly blocked, the usual procedure is to insert a balloon and drug-covered stent into the artery using a guide wire. But when the blockage is total, it is impossible to insert the guide wire in half the cases.” Invasive methods are usually used to treat completely blocked arteries, including creating bypass coronary arteries, and sometime amputating the affected limb.
Ovalum’s product, invented by Shamay, includes a mechanism via which the treating physician can, with the press of a button, cause the tip of guide wire to retract, and quickly revert to its previous configuration. The company compares its device to a worm that moves forward by a series of contractions and expansions. The device’s tip first contracts, pulling the guide wire into the artery, after which the device forcibly expands to create a cavity within the blockage. There is no need to externally push the guide wire or to try to twist the guide wire into the blockage, as is currently done.
Ovalum has already conducted a first feasibility study on amputated human limbs that could not be saved using current methods for clearing blocked arteries. Shamay says the company’s product was able to penetrate the blockage. The company is now planning a new trial, after which it will file an application for the US market. The company believes that the product can be launched in early 2007.
“Globes”: Do you have a marketing partner for your product?
Shamay: “Not yet.”
What about plans for a public offering?
“I prefer not to comment about that.”
Published by Globes [online], Israel business news - www.globes.co.il - on September 4, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006