Medical instrumentation company Exalenz Bioscience Ltd. (TASE:EXEN) , which develops diagnostic systems for digestive conditions based on exhaled breath, announced the success of its NIS 23.5 million rights offering implemented yesterday. 94.2% of the rights were realized, 71.2% of them by Mori Arkin, Exalenz's chief supporter for over a decade, during the highs and lows.
At present, Exalenz is traded at a market cap of NIS 65.1 million. Share price is 2% lower than the issue announcement date, but during this period the share has jumped 27% and plummeted back due to the offering. The rights offering follows the company's successful trial of its leading test, which diagnoses the H. pylori bacteria causing ulcers.
Exalenz currently markets H. pylori tests to doctors' clinics. Following the success of the trial, it will probably be able to additionally market its product to doctors preferring to send the test to a central lab. Trial results will probably be submitted to the US Food and Drug Administration (FDA) in August. The company estimates that a reply will be received by the end of the year.
The H. pylori breath test market currently generates $30-40 million in terms of revenue to test manufacturers. At present, Exalenz is a small competitor in the market, with a market share of about 10%. It hopes to acquire a larger share of this growing market by launching its lab tests.
Published by Globes [online], Israel business news - www.globes-online.com - on July 25, 2016
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