Exalenz Bioscience Ltd. (TASE:EXEN), a developer of the BreathID non-invasive diagnostic device for diseases of the liver and digestive tract, plans to raise at least NIS 20 million in equity. Moshe (Mori) Arkin, who owns 44% of the company, has announced that he will invest up to NIS 10 million in the offering, proportionate to his stake.
Following the commercial launch of the BreathID device for the detection of the H. Pylori bacteria, a cause of gastric ulcers, Exalenz's sales rose six-fold to NIS 5.5 million in the first half of 2011 from NIS 900,000 in the first half of 2010. The device has both EU CE Mark and US Food and Drug Administration (FDA) approval, although the FDA has demanded new tests for one of the devices disposable parts.
Exalenz says that it has already sold, or is in the process of selling, its products to 100 hospitals in the US. The company markets its products both directly and through distributors to hospitals and gastroenterologist clinics.
Exalenz estimates the H. Pylori diagnostic market at $200 million a year. The company is also targeting larger markets for the device, including liver cancer, cirrhosis of the liver, and fatty liver disease.
Exalenz's share price fell 2.3% by mid-afternoon to NIS 0.56, giving a market cap of NIS 76 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2011
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