Medical device start-up Medingo Ltd. has raised $27 million from its parent company, Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) and US venture capital fund Radius Ventures. Elron will invest between $13 million and $22 million, including $4 million of convertible loans, and Radius Ventures will invest $5 million.
Elron owns Medingo through Rafael Development Corporation. Medingo is developing a miniature dispensing patch for insulin-dependent diabetic patients. The device is a convenient, easy to use, discreet, and more cost-effective than standard insulin pumps. Medingo expects to obtain US Food and Drug Administration (FDA) approval for the patch and begin in 2008.
Medingo CEO Dr. Ofer Yodfat founded the company in 2005. The company's chairman is RDC CEO Avishai Friedman. Friedman said, "Medingo is developing a disposable insulin pump that is significantly smaller than the leading pumps on the market. In contrast to current pumps, it resembles a patch rather than a pacemaker. The product has one main competitor, Insulet Inc. (Nasdaq:PODD). Insulet broke through the market for us, and we believe that we have the better product. It's half the volume, and discrete, so it can be worn even with a close-fitting shirt. We also think that the user interface is better."
Elron notes that the insulin patch requires no external attachment lines. It comprises of two parts: the disposable pump and a remote that controls the pump. In addition, the device does not use a second instrument to measure blood sugar levels.
In addition to the diabetes market, Medingo's device can be used for other medical applications.
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2007
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