Cervix device co ConTIPI acquired for up to $90m

The acquistion by an unnamed international company is subject to regulatory permits and milestone payments.

Cervix problems solutions company ConTIPI Ltd., founded by gynecologists Dr. Ilan Ziv and Zeev Bronfeld, has been sold for up to $90 million to an international company, whose name has not been disclosed. The sale is subject to approval of the US Food and Drug Administration (FDA) and Office of the Chief Scientist.

ConTIPI has received $2.5 million to date in expenses and commitments to protect its proprietary assets. The company says that if it receives all the permits, it will make $30 million revenue in the third quarter of 2013. The company will receive an additional $55 million subject to meeting unspecified sales targets for its device, which is under development, during a specific time period from the closing of the deal.

ConTIPI, founded in 2002, is developing a tampon-like device for the prevention of urine leakage and help faulty functioning of the cervix in women. It is also developing other products for the cervix.

ConTIPI has raised $4.5 million to date from Ziv and Bronfeld, its main shareholders, and other investors, including Policy Ltd., owned by Boris Krasny.

A 2010 agreement with Procter & Gamble Co. (NYSE: PG) to acquire ConTIPI in stages for $15 million, and up to $100 million in milestone payments, broke down. Procter & Gamble continues to distribute the company's products in a pilot in several countries. Sales have totaled tens of millions of dollars. The products are sold in pharmacies without a prescription, but with a doctor's recommendation.

Capital Point Ltd. (TASE:CPTP), which owns 4.2% of ConTIPI, will make $4 million on the sale.

Published by Globes [online], Israel business news - www.globes-online.com - on April 8, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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