Boston Scientific acquired the medical device start-up eight months ago.
Sources inform ''Globes'' that Boston Scientific Inc. (NYSE: BSX) is closing the operations of Rimon Medical Technologies Ltd., eight months after acquiring the company. Boston Scientific paid an initial $80 million, and will pay an additional $300 million subject to Rimon meeting certain milestones.
Rimon's Israel activity is being closed down after its technology was installed at Boston Scientific's facilities in the US. The company develops and commercializes non-invasive smart, miniature implants which enable physicians to assess and treat a variety of medical conditions. The company's 40 Israeli employees have been let go. Most of them have found alternative jobs in their field in other companies. The fate of Rimon Medical CEO Hezi Himelfarb is not known.
Former Rimon director Batsheva Elran, a managing partner at Medica Venture Partner, said, "Progress has been according to plan. Boston Scientific never promised to turn Rimon into its R&D center in Israel. In my opinion, it's a very good thing that Rimon's managers and employees are scattering among other companies in the field, bringing with them their expertise."
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2008
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