Possis Medical invests $2.5m in Rafael Medical

Rafael Medical Technologies plans to file a marketing approval request for its SafeFlo vena cava filter with the FDA in 12-18 months.

Rafael Medical Technologies Ltd., which has developed SafeFlo, a retrievable vena cava filter for the management and prevention of pulmonary embolism, has raised $2.5 million at a company value of $16 million, from Possis Medical Inc. (Nasdaq:POSS), which will acquire 15% of the company.

Possis also has a three-year option to acquire Rafael Medical at a company value not exceeding $54 million. It will provide a $1.5 million loan to the company, if needed, and appoint a director to the company’s board. Possis has a market cap of $215 million.

Rafael Medical is based in Caesarea and is registered in Delaware. According to IVC Online, the company has raised several million dollars to date from private investors, including Eitan Wertheimer’s Microdent Ventures Ltd. The company was founded by president and CEO Aaron Feldman and medical director Dr. Elchanan Bruckheimer, a pediatric cardiologist at Schneider’s Children’s Hospital.

Rafael Medical is carrying out clinical trials of SafeFlo, which it expects to complete within a year. It will file a marketing approval request with the US Food and Drug Administration (FDA) in 12-18 months. Possis said the market for IVC filters was expected to reach $200 million by 2010.

The company’s second product, VascuGrasp, is an especially narrow catheter used to insert SafeFlo. The clinical trial for SafeFlo is also testing VascuGrasp, which may be later marketed as a separate product.

Published by Globes [online], Israel business news - www.globes.co.il - on December 17, 2006

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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