Stent coating developer Elutex Ltd. (TASE:ELTX) has reached the end of the road, at least in its present form. The company has decided that it does not have the resources or incentive to move on to the commercial stage of its product.
Elutex's board therefore decided to put the company into suspended animation, or "hibernation", and seek a partner who will undertake to continue the company's business, despite Elutex having NIS 13.6 million in cash at the end of September 2008.
Elutex's share dropped 26% yesterday on the news to NIS 0.34, giving a market cap of NIS 6.3 million.
From the outset, it was clear that Elutex's future depended on finding a partner to commercialize its product after technological development.
Biomedix Incubator Ltd. (TASE:BMDX) controlled Elutex through Meytav Technological Enterprises Innovation Center Ltd.. Biomedix chairman Ran Nussbaum said, "Elutex was able to do what it set out to do, develop a coating for a medical device, such as medicated stents, through chemical reactions rather than mechanics. In order to move forward now, we need to build a plant at a cost of $50-60 million. We do not have the capital or reason to build such a plant ourselves, which is why we're seeking a partner."
Published by Globes [online], Israel business news - www.globes-online.com - on March 9, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009