US medical device company ZOLL Medical Corp. has acquired Israeli company Kyma Medical Technologies Ltd., which develops technologies to measure early signs of congestive heart failure. ZOLL will pay $35 million plus milestone payments on future sales and products. Elron Electronic Industries Ltd. (TASE: ELRN), which owns 26% of Kyma, first reported the deal in June, but only now that due diligence has been successfully completed can it be revealed that ZOLL is the buyer.
Kyma has developed a remote patient monitoring system for fluid management in a variety of patients including those suffering from heart failure. The µ-Cor System uses radio frequency-based technology to monitor the level of fluid in the lungs and collects data on heart rate, respiration rate, activity, and posture, all of which are analyzed using proprietary algorithms to determine patient-specific vital signs trends. Once a potential deterioration in the patient’s condition is identified, a notification is sent to the patient’s medical team.
In January 2015, the µ Cor System Kyma received the EU CE Mark approval for monitoring thoracic fluid content, ECG, heart rate, respiration rate, activity, and posture.
With offices in California and Kfar Saba, Kyma was founded in 2008 by CTO & GM Uriel Weinstein, former CEO Assaf Bernstein and VP Medical Affairs Dr. Michal Shohat.
ZOLL said it plans to maintain Kyma’s facilities and workforce in Israel and California as a part of ZOLL’s LifeVest division.
ZOLL LifeVest president Jason T. whiting said, “The acquisition of Kyma Medical will allow ZOLL to broaden its product offerings with additional technologies designed to improve outcomes for heart failure patients with fluid management problems, with the goal of reducing hospitalizations. With the acquisition, Kyma’s technology will be able to better reach global markets through ZOLL’s existing network. Additionally, we expect to leverage Kyma’s strong R&D capabilities as well as the broader research talent available in Israel.”
Kyma president & CEO Murali Srivathsa said, “ZOLL provides Kyma with an increased infrastructure of clinical and commercial resources that will enable our technology to reach a greater number of clinicians and patients. This agreement gives Kyma the opportunity to become part of a company with a long and sustained commitment to improving patient outcomes.”
Kyma chairman Guy Katsav said, “We are very proud of Kyma’s technological achievements and are extremely pleased that ZOLL has decided to acquire Kyma. The strategic and cultural fit between ZOLL and Kyma represents the best opportunity to bring Kyma’s innovative technologies to patients worldwide.”
Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2015
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