Accelmed will invest NIS 8 million in MCS Medical Compression Systems (DBN) Ltd. (TASE:MDCL) in exchange for a 26% stake in the company. MCS develops non-invasive compression systems to prevent blood clots in the limbs during surgery.
Accelmed was established three months ago by Agis Pharmaceuticals founder Moshe (Mori) Arkin and Exalenz Bioscience Ltd. (TASE:EXEN) founder and former CEO Dr. Uri Geiger. It seeks to make investments of $1-3 million in medical device companies that have reached the clinical trial stage. MCS has already passed its trials and has sales worldwide, with an emphasis on the US. Three medical centers already use its device as an alternative to blood thinning medication.
MCS published its financial report for the fourth quarter and full year of 2008 today. The company posted $4.2 million in sales in 2008, up from $3.3 million in 2007. The company is now establishing a sales network and is also considering collaborations.
MCS CEO Adi Dagan said, "2009 will be the year of consolidation among opinion-setters, and we'll much more substantial sales growth in 2010." He added, "Following the termination of our collaboration with our previous distributor, Hill-Rom Company, and the changeover to director distribution, we doubled our gross profit and halved our losses."
MCS's share rose 11.7% today to NIS 1.61, giving a market cap of NIS 33.6 million. The share price is 87% above the price per share to be paid by Accelmed when negotiations for the stake in the company took place. The share has since risen NIS 0.80.
Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2009
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