Biomedix Incubator Ltd. (TASE:BMDX) portfolio company Endogun Medical Systems Ltd. has raised $12.55 million at a company value of $24.55 million, after money. Biomedical investment fund Filvest SCA led the round with an investment of $8.25 million, in its first investment in Israel.
Biomedix's share rose 6.7% by mid-afternoon to NIS 1.20, giving a market cap of NIS 113 million.
Endogun intends to use proceeds from the financing round to further develop its two products for the minimally-invasive fastening of tubes and treating pelvic organ prolapse, as well as for the expansion of the company's strategic plan.
Biomedix CEO and Endogun chairman Elad Naggar told "Globes", "Endogun intends to change its name to 'Israel Biomedical Innovations' and to acquire additional product lines of minimally-invasive surgical products that are between the completion of clinical trials and the start of sales."
Endogun currently markets its gynecological products directly in Europe. The company is waiting for US Food and Drug Administration (FDA) marketing approval for its gynecological product, and for its urology product, jointly developed with Cook Medical Inc., which is now undergoing preclinical trials.
Endogun plans to develop a basket of minimally-invasive surgical products that will exploit the company’s know-how in development, regulation, quality control, and marketing. For this purpose, the company hired Ronny Barak as CEO six months ago. Barak was previously CEO of Collplant and Disc Orthopaedic Technologies Inc., which was sold to Medtronic Corporation (NYSE: MDT) unit Kyphon for $220 million.
Barak said, "We saw that Israel has many technologies that are suitable for minimally-invasive surgical procedures, but little management strength or marketing capabilities. There is no reason why a strong medical devices company shouldn’t arise in Israel to lead the way to market."
In addition to Filvest, Biomedix subsidiary Spearhead Ltd. invested $880,000 in Endogun, and Biomedix's shareholder, Pontifax Fund, invested 1.3 million. Pontifax owns 18.7% of Biomedix.
"Globes": There were once plans for IPO by Endogun. Are you planning similar financial moves in the future?
Barak: "Yes, but we decided to first fatten our product line."
Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2010