Sources inform ''Globes'' that Neuronix Ltd., which is developing a non-pharmaceutical treatment for mild to moderate Alzheimer’s disease, has postponed its Tel Aviv Stock Exchange (TASE) IPO, planned for this week. Sources said that the IPO was postponed because the company has received an investment offer at a company value NIS 50 million, after money, higher than the value of the IPO - a value that the company might not have achieved in the offering.
However, the amount of the investment might by NIS 19 million less than Neuronix hoped to raise on the TASE. Leader Underwriters Ltd. was the lead underwriter, joined by Rosario Capital Ltd., and Eli Kirshstein. It cannot be ruled out that, if and when Neuronix has more capital, it will hold an IPO from a stronger position and may be able to achieve a higher company value.
Neuronix has sales growth. It has said in the past that it would reach operational breakeven within two years, on the basis of its current product, the neuroAD, provided that investment in R&D on other products is not taken into account. It will only initiate these projects when it has the money for them.
Neuronix has raised $10 million to date from private investors and the Office of the Chief Scientist. Its biggest shareholder is private French investor, Adv. Guillaume Binder, who has a 56% stake. Neuronix co-founder Dr. Jonathan Bentowitz owns 3.28%, after settling a dispute with the company and Binder. Other shareholders are mostly company officers and directors.
Neuronix has developed a medical device, neuroAD, based on its Non-Invasive Cortical Enhancer (NICE) computer game technology. The technology stimulates the affected brain regions concurrently interlaced with cognitive training, targeting specific brain regions affected by Alzheimer’s disease. Studies have indicated that stimulation induces long-term potentiation (LTP), which is associated with learning and memory processes, and results in a measurable cognitive improvement after a few weeks of treatment.
Neuronix began sales of the neuroAD in Europe, Israel and Singapore in mid-2012. The prospectus said that it had NIS 800,000 in sales in 2012, and NIS 1 million in sales in the first quarter of 2013. It lost NIS 2.7 million in the first quarter, mostly due to investment in R&D.
Most sales are to patients who finance the course of treatment privately. The growth in sales can be attributed the almost total lack of treatment for Alzheimer's. Neuronix's treatment, which apparently has no side effects, can be combined with any drug regime. The company is seeking US Food and Drug Administration (FDA) approval, and initiated a clinical trial for this purpose in April. Progress in the trial and its results could have a strong effect on the company's value in the next couple of years.
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2013
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