Israeli funds Pitango Venture Capital and Agate Medical Investments LP have invested in US medical device company Valeritas Inc., which has raised $150 million in its third financing round. Welsh, Carson, Anderson & Stowe led the round, and was joined by current investors MPM Capital, Abingworth; Advanced Technology Ventures; ONSET Ventures, HLM Venture Partners, CHL Medical Partners, Kaiser Permanente Ventures, and the Israeli funds.
Pitango partner Ittai Harel established the connection with Valeritas. Before joining Pitango, he served in executive positions at several foreign medical devices and drug delivery companies, and currently serves on Valeritas' board. He told "Globes", "The company asked me to advise, and I saw the opportunity. Our policy was, and remains, to invest in Israeli companies, but I didn’t want to miss Valeritas."
Valeritas said that the funding will finance the commercialization of its V-Go disposable insulin delivery device, which provides basal-bolus insulin therapy for adult diabetics. The product is already sold in Europe, and the US, and the company aims to market it worldwide.
Agate managing general partner Chanan Schneider told "Globes", "This is the only insulin pump in the world that operates solely on a mechanical basis. The insulin is delivered in a fixed quantity every day, and extra dosages can be delivered if necessary. I believe that the US Food and Drug Administration (FDA) will not approve another product like this in the next two years."
$150 million is a huge amount. What made it possible: technological breakthrough, market need, or management?
Harel: "Such a large financing round is rare, even in the US. The Valeritas difference is its management, market know-how, and the technological breakthrough not only of its product but of its production process concept."
Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2011
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