Scarless surgery solutions developer Eon Surgical Ltd., founded just four years ago at Rad BioMed Incubator, has been acquired by Teleflex Inc. (NYSE: TFX) for a few tens of millions of dollars.
Eon Surgical is engaged in microlaparoscopy - minimally invasive surgical procedures through small incisions in the abdomen, instead of a large one. The company's products allow surgical procedures through a minimum number of incisions. Through one incision, the company's device allows the insertion of a range of surgical tools, in contrast to current procedures in which each tool is inserted through a separate incision. The fewer incisions needed for surgical procedures, the easier recovery becomes, and the less scarring is caused.
Eon Surgical was founded by CEO Danny Farin, who previously served as a projects manager at Sunrise Projects, which advises companies on obtaining R&D grants, and by Shaul Shohat, who has founded several non-invasive medical companies, including PrePex Ltd. (formerly CircMec), Bioprotect Ltd., and OrthoSpace Ltd.. Eon Surgical VP R&D Yehuda Bachar is also a veteran of the minimally invasive surgical industry.
Eon Surgical has not yet reached sales, and the fact that it was acquired at this stage indicates that its technology is exceptional, and that the field in which it operates in thriving and attractive. According to IVC, the company has raised only a few million dollars from Rad BioMed Incubator, the Office of the Chief Scientist, Rutledge Vine Capital, which specializes in Asian investments, and private investor Zohar Gilon, who until recently has operated discreetly, and successfully, in high tech. Eon Surgical is his first investment in the life sciences.
Eon Surgical is the second acquisition in the past two years of an minimally invasive incubator portfolio company which was founded only a short time earlier. In April 2012, PolyTouch Medical was acquired by Covidien plc (NYSE: COV) for $30-40 million, shortly after leaving Misgav Venture Accelerator, owned by Trendlines International Ltd.
Although the exits are not large, they have given their investors a large return on investment, and definitely serve as a foundation for a successful business model for the technology incubators.
Teleflex is a global provider of specialty medical devices for a range of procedures in critical care and surgery, with $150 billion in sales. It has a market cap of $3.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2013
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