Urology stent developer Allium Medical Ltd. (TASE: ALMD) has announced that it plans to merge with another company. Biomedix Incubator Ltd. (TASE:BMDX) owns 25.8% of Allium, which said that the target company is also controlled by Biomedix. The target company is apparently Israel Biomedical Innovations Ltd. (formerly Endogun), whose operations are synergetic with Allium's.
Biomedix owns 18% of IBI, which has technology for connecting tissue within the body without the need for surgery. IBI already has sales of its first product, a gynecological device for pelvic organ prolapse repair. The company granted Cook Urological Inc. rights to develop jointly a second product for bladder fixation, which is undergoing preclinical animal trials.
Allium says that the merger will create a new company that will have substantially more cash than Allium currently has. Biomedix did not disclose in its financial report for 2010 what were IBI's revenue or cash, but the company is reportedly worth NIS 75 million.
IBI repeatedly considered an IPO on the TASE, and raised $12 million in a private placement last year from Filvest. The company said at the time that it planned to acquire synergetic minimally invasive surgical technologies.
Allium's share price rose 3.8% today to NIS 0.69, giving a market cap of NIS 50 million. Biomedix's share price rose 1% to NIS 0.59, giving a market cap of NIS 83 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2011
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