Sources inform ''Globes'' that two more companies are set to join the wave of biomed IPOs on the Tel Aviv Stock Exchange (TASE) over the coming months. The two candidates in question are SMT, which is developing products for preventing strokes, and Keddem Bioscience Ltd., a subsidiary of Compugen Ltd. (Nasdaq: CGEN; TASE: CGEN), which focuses on small molecule drug discovery.
SMT is further ahead in its preparations for an IPO and its offering has been set at $5 million at a company value of $20 million. Keddem Bioscience has not yet set the size and value of its IPO. Due to the multitude of flotations competing for the limited pockets of Israeli investors in the life science field, the IPOs could be postponed to the next quarter.
SMT is a part of SagaX Inc., founded by Prof. Dov Shimon, a former senior surgeon at Hadassah Medical Center in Jerusalem. The company is developing a device similar to a stent which is fitted inside an angiopathy balloon, to prevent embolisms from reaching the brain. Similar devices have been developed by Rafael Medical Technologies, which recently raised $2.5 million from Possis Medical Inc., Mindguard, which has since closed, and other companies worldwide, since the stroke market is huge and at present there is no product that can offer mechanical inter-arterial protection against embolism. Each of the companies has different patents and methods of carrying out the protection, and each of these are aimed at a slightly different market. None of these products has yet been approved for marketing.
Two years ago, SagaX was acquired by MIV Therapeutics Inc. (OTC BB: MIVT.OB) for $2.2 million in shares (10% of the company at that time). MIV develops drug delivery systems for cardiovascular stents and other implantable medical devices, and this explains the synergy between the two companies. SagaX has not recorded any revenue to date.
Keddem Bioscience is Compugen's chemical division, which was spun off in 2004. Compugen invested $5 million in its subsidiary and it also received a $2 million grant from the Chief Scientist. It is not believed to have received any other investments. Keddem Bioscience is jointly managed by Dr. Dror Ofer and Dr. Arnon Levy. The chairman is Martin Gerstel, who is also chairman of Compugen.
Compugen specializes in the discovery of biological drugs based on proprietary analytical methodology. Its subsidiary Keddem also uses similar methodology in the discovery of small molecules that are not proteins or protein particles. The company is not believed to have developed a molecule for use in human trials.
Compugen has two subsidiaries, both of which it plans to float on the TASE this year. This would appear to indicate that it is running low on cash or that it wishes to undertake expensive moves such as self-financed clinical trials. EvoGene, its other subsidiary, focuses on the genetic enhancement of plants. The company has already signed several collaboration agreements and it is on the verge of making its first sales.
Published by Globes [online], Israel business news - www.globes.co.il - on May 9, 2007
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