Ilex Medical Ltd. (TASE:ILX) is in advanced talks to invest in medical device developer D Medical Industries Ltd. (TASE:DMDC) and to market some of the products of its portfolio companies.
Ilex is due to invest NIS 6 million in D Medical at NIS 0.38 per share, giving a company value of NIS 54 million, compared with its current market cap of NIS 46 million.
Ilex Medical markets blood testing kits in Europe, Russia, and South Africa. D Medical's subsidiaries include Nilimedix Ltd., which is developing a continuous subcutaneous insulin pump for diabetics, and Sindolor Medical Ltd., which has developed a subcutaneous drug delivery system using safety needles.
Earlier negotiations by Sindolor to supply its needles to a large pharmaceutical company ended with no deal.
Ilex has been seeking to diversify its business beyond diagnostic kits, and has signed contracts to market food supplements in Israel and computer systems. The talks with D Medical are the first indication that it wants to market Israeli medical devices.
Ilex Medical is included on the Mid-Cap 50 Index. Its share was unchanged in morning trading today at NIS 11.96, giving a market cap of NIS 120 million. D Medical's share fell 3.4% to NIS 0.28.
Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2008
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