Elron Electronic Industries Ltd. (TASE: ELRN) portfolio medical device company Brainsgate has announced that it has raised $14 million including $6 million from new investors BNP and SPERO and the other $8 million from existing investors including Elron itself as well as Medtronic, Agate, Pitango and Cipio.
Elron, which has a 28% stake in Brainsgate, saw its share price rise 5% today, giving a market cap of NIS 467 million.
Brainsgate, based in Caesarea, is developing a device for treating strokes by electrical stimulation of nerve centers. The trial conducted by the company in 2018 did not fully achieve its end-point aims but the company saw the results as essentially successful and filed for US Food and Drug Administration (FDA) and EU CE mark marketing approval. The product was approved for marketing in Europe in May but the FDA requested additional information but not a further clinical trial. Elron estimates that Brainsgate will be able to submit the requested information to the FDA in the first half of 2021.
Brainsgate said that the funds raised in the latest financing round will be used for expanding production, and filing for the receipt of indemnity from US government health insurers. The company has not yet begun to market the product in Europe but expects to do so after marketing approval for the US is received from the FDA.
Published by Globes, Israel business news - en.globes.co.il - on December 6, 2020
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