Sources inform ''Globes'' that esophageal endoscope developer Medigus Ltd. (TASE:MDGS) is considering an offering on Nasdaq. The company has met several underwriters, and obtained a favorable opinion for a listing on the Nasdaq general market, which means a company value of tens of millions of dollars. Medigus's market cap on the TASE is NIS 110 million.
Medigus CEO Dr. Elazar Sonnenschein declined to confirm the report, saying, "I prefer to talk about things we've already done and which can been proven, rather than about things that are planned."
On the face of it, Medigus does not appear to be a candidate for Nasdaq, as the US primary market is currently unfriendly toward medical device companies and Medigus has just one product - the SRS endoscope for the treatment of gastroesophageal reflux disease (GERD). The product costs hundreds of thousands of dollars, and it does not yet have US Food and Drug Administration (FDA) certification. FDA approval will take at least a year.
If Medigus goes to Nasdaq, it probably has some rabbits in its hat, which will be revealed ahead of an offering. Last week, Sonnenschein told "Globes", "2011 should be a great year for Medigus, both thanks to its GERD product, and other products."
Presumably, a Nasdaq offering will only come after the FDA approves the SRS endoscope.
Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2010
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