Assuta to raise $150m VC health fund

Medical devices Photo: Shutterstock
Medical devices Photo: Shutterstock

$37 million has already been raised and the Israeli fund, which will invest in medical devices and digital helath startups, will reach $50 million by the end of the first quarter.

The Assuta chain of medical clinics and private hospitals, controlled by Maccabi Health Services with a 95% stake, has founded a venture capital fund for investing in medical devices in the later stages of development (before or just after regulatory approval) and digital medicine, sources inform "Globes." The fund will be called Assuta Life Sciences Ventures - Alive.

$37 million of the initial $50 million to be raised by the fund in the first stage has already been raised, with the rest of the initial sum slated for completion in the first quarter. The fund plans to reach $150 million by mid-year.

Dr. Ascher Shmulewitz and Michel Habib will own that fund's management company and actually manage the fund, in which they will also invest their own money. Shmueliwitz is a cofounder of Labcoat, sold to Boston Scientific for $100 million and a co-owner of cannabis company Therapix Biosciences, whose acquisition by a Canadian company for $48 million was recently called off. Habib was a managing partner in Agate Medical Investments, founded by Dani Naveh, and a partner in managing the investments in Israel by billionaire Vincent Tchenguiz. His participation in the fund is a continuation of his investments in late-stage medical devices companies.

Assuta operates private hospitals in Tel Aviv, Rishon Lezion, Haifa, and Beer Sheva; a public hospital in Ashdod; and a number of private clinics that are not full hospitals in Tel Aviv, Ashdod, and Ra'anana. The chain is currently managed by chairperson Prof. Joshua Shemer and CEO Prof. Ari Shamiss. Shemer is a former Ministry of Health director general and former director general of Maccabi Health Services. Shamiss formerly managed Sheba Medical Center.

As reported last July by "Globes," Assuta's 2016 revenue totaled NIS 1.5 billion, 40% of which came from treatment of Maccabi Health Services members and the rest from private revenue. The chain has grown rapidly in recent years, and its private activity has more than doubled. The chain was profitable as of 2016, when its profit was $400 million. The profits are not given to Maccabi Health Services; they are retained by Assuta for development purposes. The chain bought, brought to Israel, or developed its own unique technologies in recent years.

Assuta operates a unit for clinical research that for several years has provided it with a direct connection to the life sciences industry in Israel and overseas. The Assuta group also offers stipends for research by its staff and by external concerns.

Published by Globes, Israel business news - - on January 21, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Medical devices Photo: Shutterstock
Medical devices Photo: Shutterstock
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018