Start-up BioProtect spins off orthopedics unit

The new company, Ortho-Space, has raised $1 million at a company value of $5 million after money.

Xenia Venture Capital Ltd. (TASE:XENA) portfolio company BioProtect Ltd. has spun off its orthopedics operations unit and announced a $1 million financing round for the new company, Ortho-Space, at a value of $5 million after money.

US fund AJJS, an investor in BioProtect, is leading the investment in OrthoSpace. Xenia will own 18.4% of the new company.

BioSpace has developed a new technology, called SpaceGuard, which separates tissue using a balloon made of biodegradable material. The product creates a space between a tumor and the nearby healthy tissue. The first application of the product is for prostate cancer patients receiving radiation therapy. Separating the tumor from healthy tissue makes possible a higher radiation dose in a shorter period, while minimizing the radiation level to the surrounding healthy tissue, since they are further away.

The SpaceGuard balloon is also used in orthopedics, as an implant in the shoulder of patients with massive tears in the muscle and tendon. The implant acts as an artificial bursa, minimizing friction between the bones and the surrounding soft tissue and stops the acute reaction associated with the massive tears. BioProtect has successfully completed a trial of the implant in 24 patients in Slovenia, and has begun a trial in Israel.

BioProtect co-founder and OrthoSpace CEO Shaul Shohat said, "The shoulder trial results demonstrated the multiple uses of the technology."

According to IVC, BioProtect has raised $3.7 million to date. Xenia owns 28% of the company, and other investors include Igal Ahouvi, Rafi Gidron, and EarlyCap.

Published by Globes [online], Israel business news - - on September 10, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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