"Globes" has learned that start-up company MEL (Medical Enterprises Ltd) is currently raising $10 million, on the basis of a company value of $35-40 million, post money.
To date, the sole investor in the company has been Boston Scientific, which invested $7.5 million. The figure includes future undertakings for an undisclosed amount, included in the current round of capital raising. Several Israeli funds will invest in the company during the current round.
MEL utilizes a technology developed by Dr. Avigdor Lev, named "Synergo". The technology is used in the treatment of superficial bladder cancer, by simultaneously applying heat and intra-vesical chemotherapy to the bladder wall. The aim of the treatment is to reduce the high rate of recurrence after a patient has been diagnosed with the disease.
The company has filed patents of the technology in the US and in Europe, and is expecting approval of the patent in Japan as well. The company plans to develop technologies for other types of cancers that respond to treatments using heat and chemotherapy.
Company shareholders are Dr. Lev and his wife Mira Lev, and Boston Scientific. After the capital raising round, Boston Scientific will hold 20%, the Lev couple 50%, and the new investors will hold the remainder.
The investment is intended for the setting up of a marketing network. The company intends to start selling in Europe next year, now that it expects to receive European Union Standard approval. The company has not yet received approval by the US Food and Drug Administration. The market for cancer of the bladder treatment is estimated at $6 billion a year.
Published by Israel's Business Arena August 24, 1999