The Office of the Chief Scientist has approved in a principle a grant for D Medical Industries Ltd. (TASE:DMDC) subsidiary Nilimed Ltd..
The company said, “If the Chief Scientist transfers to Nilimed the entire grant approved,” it would receive NIS 900,000 for further development of its insulin pump. The grant is part of a NIS 3 million total allocation for development.
In exchange, Nilimed will pay the Chief Scientist 3% royalties on revenue over three years from the start of sales, and 3.5% for every additional year, until the grant in repaid.
D Medical, which owns 70% of Nilimed, is controlled by a group of investors comprising Gal Erez, Zeev Bronfeld, Meni Mor, and Eyal Sharatzky, who control a number of life sciences companies listed on the Tel Aviv Stock Exchange (TASE), after acquiring stock market shells and inserting the companies into them. D Medical has a market cap of NIS 52 million.
Nilimed operated in Technion Entrepreneurial Incubator Co. Ltd. (TEIC) until its acquisition by D Medical in late 2004. It develops non-motorized insulin pumps for automatic delivery of accurate doses for diabetics.
Published by Globes [online], Israel business news - www.globes.co.il - on November 2, 2005