Aesthetic ultrasonic device company UltraShape Ltd. raised $15 million in a new financing round from a number of unnamed US investors. The company declined to comment on the report.
UltraShape has developed an ultrasonic device for body contouring by dissolving fat cells. The directed focused ultrasound waves exert a mechanical force on fat cells, causing them to break down and excreted into the inter-cellular space where it is absorbed into the digestive tract and excreted. The treatment is suited for obesity or for aesthetic purposes by removing unwanted fat, which previously require liposuction. The treatment is not intended as a replacement for dieting for the grossly obese.
UltraShape has been planning an IPO on Nasdaq for the last two years, but this has been delayed, at least until it obtains US Food and Drug Administration (FDA) approval for its device (and, perhaps also an improvement in the markets). UltraShape CEO Rodger Stewart told "Globes" yesterday that the company aimed to float at a value of $300 million, if not higher, and notwithstanding this, it has not ruled out the possibility that it could be acquired.
The company obtained EU CE Mark certification back in 2005. Since Stewart took over at the helm, UltraShape has expanded, and quarterly sales have grown steadily. It now has sales in 47 countries. Half the sales are in Europe, and the rest divided equally between Latin America and the Far East. Sales for 2007 are expected to total $16 million. The company has posted aggregate sales of $35 million since it was founded.
UltraShape was founded by Yoram Eshel, formerly director R&D at Angiosonics Inc. The company's investors include Israel Seed Partners, Polaris Venture Partners, Yoel Geva (founder and CEO of the largest private school in Israel, preparing 16, 000 students a year through courses, books, software, and online services for the Israeli matriculation exams), and the Chief Scientist through the Tnufa project. Stewart’s previous position was president of the Sorin Group’s North America Region.
Published by Globes [online], Israel business news - www.globes.co.il - on August 23, 2007
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