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Medical Devices Start Ups in Israel: Venture Capital Sourced Locally – Rainbow Medical (GlenRock) & AccelMed (Arkin Holdings)

June 12, 2014 by 2012pharmaceutical

Medical Devices Start Ups in Israel: Venture Capital Sourced Locally – Rainbow Medical (GlenRock) & AccelMed (Arkin Holdings)

Reporter: Aviva Lev-Ari, PhD, RN

This article has two Parts:

Part One: Rainbow Medical, GlenRock Israel
Part Two: AccelMed, Arkin Holdings

Part One: Rainbow Medical, GlenRock Israel

Majority holding – Investing in its own intellectual property, Rainbow begins with a majority holding when it seeds a new startup.

Therapeutic products – Rainbow invests in products aimed at treating significant unmet medical needs.

Game changers – Rainbow’s products are based on disruptive technologies that emerge from out-of-the-box thinking.

Market focus – Rainbow targets the multi-billion dollar therapeutic medical devices market, a fast-growing, recession-resistant sector.

Strategic alliances – Rainbow has forged alliances with leading medical device corporations.

Lean operations – Rainbow’s business processes are based on lean and effective implementation of detailed, data-driven work plans led by teams of professionals.

World-class, hands-on management – Rainbow’s experienced management team provides hands-on strategic direction to subsidiaries from seed stage to exit.

Diversified risk – Rainbow invests in a broad spectrum of seed stage medical device companies with significant upside potential for investors.

WATCH VIDEO
http://www.rainbowmd.com/162783/Bussiness%2DModel

SOURCE

http://www.rainbowmd.com/162783/Bussiness%2DModel

PORTFOLIO

Ingenuity and diversity driven by unmet market needs . . .

Enopace Biomedical is developing a minimally invasive, implantable endovascular neuro-stimulator for heart failure patients that reduces left ventricle workload and improves the systolic/diastolic ratio.		Fibro Control is developing a minimally invasive device for temporary occlusion of the uterine arteries to treat uterine fibroids.
GluSense is developing an accurate, long-term, minimally invasive, implantable, continuous glucose sensor for diabetes patients.		Maxillent is developing an innovative, minimally invasive, sinus lift implant. Watch the video from a “making change” broadcast on Channel 10 Israel TV
Nano-Retina is developing an artificial retinal prosthesis based on a proprietary nano-technology configuration for sight restoration. The device is being developed in collaboration with a leading nano-tech lab in Texas.		PharmaLight is developing an ocular drug delivery platform that safely and effectively increases ocular blood flow and administers therapeutics to the posterior segment of the eye.
ProstaPlant is developing a transurethral implant for symptomatic Benign Prostatic Hyperplasia (BPH) and Lower Urinary Tract Symptoms (LUTS).		Affix is developing a catheter ablation device to treat atrial fibrillation (AF), the most frequently diagnosed arrhythmia, which affects 2.3 million people in the United States.
Vascular Dynamics is developing an implantable stent-like device to treat hypertension.		BlueWind Medical is developing a novel wireless neuro-stimulation device for the treatment of peripheral neuropathic pain (PNP).
Slender Medical is developing a novel treatment for subdermal tissues using non-invasive high intensity focused ultrasound (HIFU). Treatment indications include aesthetic fat reduction, specifically designed for small body areas such as the chin, as well as medical indications such as treatment of lipoma and keloids.		Roboscopy Medical develops an efficient, low cost robotic system for minimally-invasive surgical procedures

Yossi is a world renowned entrepreneur with a long-term successful track record of creating and managing innovative med-tech companies.

Yossi’s companies have engaged in a wide variety of advanced technologies and have signed significant strategic agreements with multinational corporations.

Yossi has filed over 500 U.S. patents and is highly respected among leading U.S. and Israeli corporations and venture capitalists.

SOURCE

http://www.rainbowmd.com/162783/Yossi%2DGross

SOURCE

http://www.rainbowmd.com/162783/Portfolio

Enopace Biomedical raises $13Million

28/02/2013, 19:24

Gali Weinreb

Italy’s Sorin Group has made a further investment in the company, which is developing a minimally invasive neurostimulator for treating heart failure.

Enopace Biomedical Ltd., which is developing a minimally invasive neurostimulator for the treatment of heart failure, today announced that it has raised $13 million from Italian medical device company Sorin Group SpA (BIT: SRN). Sorin also received an option to acquire Enopace for an undisclosed amount. The Italian company previously invested $7 million in Enopace, in November 2011.

Sorin also invested $5 million in Rainbow Medical. Rainbow Medical was founded by Leo Recanati’s GlenRock Israel and serial entrepreneur Yossi Gross to invest companies based on his inventions, of which Enopace is one. Rainbow’s investors include Medtronic Inc. (NYSE: MDT) and Abbott Laboratories Inc. (NYSE: ABT)

Enopace CEO Amir Dagan founded the company in 2008 together with Gross. The company’s device, an endovascular micro-stimulator that increases cardiac efficiency by reducing left ventricular workload in heart failure patients, targets an $11 billion market. This is one of the largest and most problematic cardiovascular markets.

Dagan told “Globes”, “Heart failure is a mechanical problem of pumping blood to and from the heart. Most heart failure patients are currently treated with medications.” He added that there was a need for medical devices to support the heart’s mechanical action, because drugs do not provide adequate treatment in the late stages of the disease.

Patients with severe, category 4, heart failure undergo surgery to implant various devices, which often only offer temporary solutions until a heart transplant. Several companies are trying to bring to market more permanent implants, including Israel’s BioControl Medical Ltd., another company founded on the basis of a Gross invention.

All of these devices are surgically implanted, which is where Enopace comes in: its product is implanted by catheter. “We’re talking about a 30-minute procedure carried out while the patient is awake, in contrast to a two-and-a-half hour procedure under anesthetic,” said Dagan. “Our product is therefore also relevant for patients with category 2 or 3 heart failure, and can improve their condition instead of using medication.”

Enopace’s neurostimulator is not implanted in the heart, but in the arteries. The heart’s pumping action is controlled by an electrical pulse, which expands the arteries to accept the incoming blood, reducing the effort needed by the heart muscle. Enopace’s device receives and amplifies this signal, further reducing the heart’s muscular effort.

“Enopace is the first company to pace the arteries,” says Dagan. “On the basis of this platform, we will later develop products for other diseases, such as pacemakers for the renal and pulmonary arteries, or for the treatment of hypertension in the lungs.”

Enopace’s neurostimular draws its energy from an external battery-less source, and it can be controlled by wireless to ease or intensify the stimulation. Later, the device could be used to transmit data from the body.

The neurostimular has undergone animal trials and a Phase I clinical trial. Dagan believes that the company can obtain marketing certification in Europe within 18 months, but cautions, “We still have a lot to prove.”

“Globes”: How was the relationship with Sorin created?

Dagan: “Sorin, an Italian company with global operations, is engaged in precisely this field of smart cardiology. They loved the fact that this is a product at the spearhead of new technology and with many potential applications. The company has been growing rapidly lately, launching new products and making acquisitions. We found it to be a partner with fast decision-making for a corporation. They love our technology and aren’t deterred by the technological challenges; on the contrary, they’re pleased by the challenges that we have overcome.”

Published by Globes [online], Israel business news – www.globes-online.com – on February 28, 2013

SOURCE

http://www.globes.co.il/en/article-1000826211

Rainbow Medical raising $50m investment fund

03/06/2012, 19:49

Gali Weinreb

Abbot Laboratories and Medtronics invested in the fund, which invests in medical device start ups founded by serial entrepreneur Yossi Gross.

Sources inform ”Globes” that Rainbow Medical Ltd., which was established on the basis of medical devices companies founded by serial entrepreneur Yossi Gross, is raising $50 million in its second financing round. Two of Rainbow’s strategic investors Medtronics Inc. (NYSE: MDT) and Abbot Laboratories Inc. (NYSE: ABT) are investing in the round, and one of them has already transferred the money.

Two other strategic investors are also participating in the round, along with GlenRock Israel of Leon Recanati, one of Rainbow’s founders.

Rainbow CEO Efi Cohen-Arazi told “Globes”, “We believe that this is the last financing round we will need, before we are financed by exits and dividends from our current companies. We’re not exactly a venture capital fund, but an operative investment company that establishes companies on the basis of our patents, a model that exists nowhere else in the world.”

Rainbow, founded in 2007, has twelve portfolio companies, eight of which are conducting human clinical trials of their products, and one of which has obtained EU CE Mark.

“We are always the sole initial investor,” says Cohen-Arazi. “This saves the companies time and effort in navigating between investors and in protracted board meetings. We serve in the management of all of the companies, offering a range of services, including regulation, financial management, and legal advice. In this way, we can go far on a small investment.”

Rainbow invests $3-5 million in each company, with the goal of reaching the human clinical trial stage. “At this point, we look for support and value support from third parties,” says Cohen-Arazi.

Rainbow COO Gilad Lorberbaum told “Globes”, “We only found companies on the basis of definite needs and with partners, research institutes, and hospitals with which we have close but less formal relations.” He adds that Rainbow’s strategic partners do not directly invest in its portfolio companies, and have no agreements with them. In future, some portfolio companies may be founded with a strategic partner from the beginning.

Cohen-Arazi said that most of the clinical trials by the portfolio companies are conducted in Europe. “This is because of Israel’s Ministry of Health. Israeli hospitals cooperate, but going through the Ministry of Health is so hard that it’s better to conduct a trial in Europe. I’ve been told, ‘Do a trial here and then apply for CE Mark’, but at that stage it’s already possible to conduct trials in Europe.

“Rainbow also has extensive development operations in the US, headed by Ron Tavlin, a veteran US venture capitalist, from an office in Minneapolis.

Rainbow has 12 portfolio companies, and plans to reach 15. “All the products are complex and require clinical trials,” says Yossi Gross. “We operate in a range of fields, blood pressure, diabetes, dentistry, vision, obesity, and Alzheimer.”

The portfolio companies include:

Enopace Biomedical Ltd., which is developing a minimally invasive, implantable endovascular neuro-stimulator for heart failure patients, and which recently raised $7 million from Italy’s Sorin Group SpA (BIT: SORN);
Vascular Dynamics Inc., which is an implantable stent-like device to treat hypertension, and which raised $13.5 million from US funds in February;
Maxillent Ltd., which is developing a minimally invasive, sinus lift implant;
Nano Retina Inc., which is developing an artificial retinal prosthesis for sight restoration, and is currently raising $10 million;
GluSense Ltd., which is developing an accurate, long-term, minimally invasive, implantable, continuous glucose sensor for diabetics;
BlueWind Medical Ltd., which is developing a novel wireless neuro-stimulation device for the treatment of peripheral neuropathic pain.

Published by Globes [online], Israel business news – www.globes-online.com – on June 3, 2012

SOURCE

http://www.globes.co.il/en/article-1000754029

Heart failure treatment co Enopace Biomedical raises $7m

17/10/2011, 15:59

Gali Weinreb

Italy’s Sorin Group made the investment, saying that heart failure is the largest unmet medical need.

Enopace Biomedical Ltd. has raised $7 million from Italian cardiovascular diseases medical devices company Sorin Group SlA (BIT: SRN). Enopace is developing a neuromodulation system for the treatment of congestive heart failure. The company will use the proceeds to finance initial clinical studies of its technology and further develop its minimally invasive product which stimulates the heart tissue to improve blood flow.

Enopace CEO Amir Dagan said, “The innovative implant is inserted via catheter without the need for invasive coronary surgery. It improves heart function by easing the pressure in the left ventricle.”

Caesarea-based Enopace was founded in 2008 and has ten employees. It is based on technology invented by serial entrepreneur Yossi Gross, a founder of Biocontrol Medical Ltd., VisionCare Ltd.,TransPharma Medical Ltd., and many other companies.

Enopace’s other investor is Rainbow Medical Ltd., which was founded in 2007 by Leon Recanati’s GlenRock Israel to foster Gross’s inventions. Sorin’s investment in Enopace is believed to be the first large investment in a Rainbow portfolio company by a major medical devices company.

Sorin Group CEO Andre-Michel Ballester said, “Through Enopace Biomedical, Sorin Group will support the development of a unique medical device solution for today’s most urgent, unmet clinical need. This segment represents one of the largest and fast-growing market opportunities in the medical device field.”

Sorin says that heart failure is the largest unmet clinical need, with the highest associated healthcare costs, in the cardiovascular world today. The US healthcare system spends over $40 billion a year on heart failure patients. It adds that neuromodulation systems represent a significant opportunity to expand the clinical indications for device-based heart failure therapy.

Published by Globes [online], Israel business news – www.globes-online.com – on October 17, 2011

SOURCE

http://www.globes.co.il/en/article-1000690826

Hypertension stent co Vascular Dynamics raises $13.2m

07/03/2012, 18:02

Vascular Dynamics has developed a passive, catheter-delivered stent implant for the treatment of high blood pressure (hypertension).

Vascular Dynamics Inc. has raised $13.2 million at a company value of $31 million. A West Coast equity fund, whose name was not disclosed, led the round. The company was founded in 2008 at Rainbow Medical Ltd. an incubator founded by Yossi Gross and controlled by Leon Recanati’s GlenRock Israel. Rainbow participated in the financing round.

Vascular Dynamics has developed a passive, catheter-delivered stent implant for the treatment of high blood pressure (hypertension). The stent is in the preclinical stage (animal trials). Like all Rainbow companies, Vascular Dynamics was based on an idea of Gross’s. Vascular Dynamics president and CEO Bob Stern, who previously served as president of Micrus Endovascular, which developed a device for the treatment of strokes and was acquired by Johnson & Johnson (NYSE: JNJ) for $480 million.

Six months ago, Vascular Dynamics moved its operations to California.

Rainbow COO Gilad Lorberbaum said that Vascular Dynamics’ miniature stent is made from nyethanol. The stent is implanted via a catheter into the cerebral arteries that carry blood to the brain. “The implant affects the natural system known as baro-receptors, which send signals to the brain and affect blood pressure. By easing the hardening of the arteries, the implant activates this system, which is not functioning properly in conditions of hypertension,” he told “Globes”.

On its website, Vascular Dynamics says, “Hypertension affects over 74 million people in the US and is estimated to cause 1 in every 8 deaths worldwide. It is a major risk factor for cardiovascular disease, morbidity, and mortality. It is a costly disease, with treatment of hypertensive patients in the US costing an estimated $60 billion a year.”

Hypertension is usually treated with medications, which reduce blood volume or expand blood vessels, but, as Vascular Dynamics states, “25% of hypertensive people are unable to adequately regulate their hypertension with medications and lifestyle modifications.”

Lorberbaum says, “The market is huge, and is dominated by medications, usually a cocktail of drugs. There is now enthusiasm for the use of device to treat hypertension. A company called Ardian was acquired by Medtronic Inc. (NYSE: MDT) for $1.3 billion. Its technology operates by attacking renal arteries, which send signals to the brain about hypertension.

“Another company, CVRx, also works on the cerebral arteries like us, but its product acts by an electrical stimulation of the system and is implanted by a surgical procedure, whereas our product is completely mechanical, is not based on electrical energy, and is implanted by catheter. CVRx also announced recently insufficient results from a trial of its product, which was unable to achieve statistically better results compared with a placebo.”

Vascular Dynamics has completed a preclinical trial of its product. The trial was the basis for the current financing round. The company plans to begin a human clinical trial in the third quarter of 2012. “We believe that 2013 will be a critical year for the company,” says Lorberbaum. The financing should suffice the company through 2013.

Vascular Dynamics’ financing round is the second by a Rainbow portfolio company. Enopace Biomedical Ltd. raised $7 million from a strategic investor at a company value of $29 million, before money. Two other companies are in talks with investors.

Published by Globes [online], Israel business news – www.globes-online.com – on March 7, 2012

SOURCE

http://www.globes.co.il/en/article-1000731532

Rainbow Medical in strategic cooperation with Cleveland Clinic

25/05/2011, 10:56

Gali Weinreb

Rainbow Medical will offer Cleveland Clinic early-stage products and concepts for testing by the hospital’s staff.

Rainbow Medical Ltd., which mainly invests in medical devices companies founded by serial entrepreneur Yossi Gross, has signed a strategic cooperation agreement with Cleveland Clinic Foundation, a top US medical center. Rainbow Medical will offer Cleveland Clinic early-stage products and concepts for testing by the hospital’s staff.

Cleveland Clinic will conduct preclinical and clinical trials and its staff can provide opinions for the marketing of products and obtaining insurance indemnification.

The agreement already covers three Rainbow Medical portfolio companies, and two others will be covered soon. Affix Medical Ltd., which has developed a catheter for atrial fibrillation of the heart, and Lotus Ltd., which has developed a capsule to induce satiety and decrease food consumption, are two of the companies.

GlenRock Israel CEO Leon Recanati founded Rainbow Medical together with its CEO Efi Cohen-Arazi. Rainbow now has several major investors, including strategic investors such as Abbott Ventures. Rainbow has reportedly raised tens of millions of dollars.

Published by Globes [online], Israel business news – www.globes-online.com – on May 25, 2011

SOURCE

http://www.globes.co.il/en/article-1000648346

Part Two: AccelMed, Arkin Holdings

SOURCE

http://www.accelmed.co.il/

leading to success

Accelmed is a private equity investment firm focused on long-term
value creation for medical device companies. Accelmed invests in small and mid-cap private and public companies.

Founded and led by Mori Arkin and Uri Geiger and supported by a team of accomplished investment professionals with extensive experience in the medical and life science fields, Accelmed offers more than access to capital. Following investment, we remain actively engaged by providing value to our companies in a myriad of ways: supporting the founders and seasoned management teams, assisting with expansion in new and distant markets and facilitating potential acquisitions.

Accelmed selectively invests in clinical stage Israeli companies that can benefit from Accelmed’s insight, capital, and broad network.

For non-Israeli companies, Accelmed, with access to hundreds of Israeli companies, offers a gateway to Israeli medical device products and innovations at attractive valuations.

Venture Capital Investments
Selective investment in clinically proven best-of-breed innovation on a global basis. Unlike most investors, Accelmed is not deal flow dependent; our strategy is to run an active global search to identify specific targets.

Private Equity
Investment in late stage revenue growth companies in the US and Europe.

Platform Model
Combining Israeli innovation with existing commercial platforms in the US and Europe.
An example exercising this model is the merger between Peer Medical, (an Accelmed portfolio company) the developer of the Full Spectrum Endoscope and Endochoice, a growing GI player with solid commercial infrastructure, who joined forces and became a significant global GI player

PORTFOLIO

Cardiovascular

	EndoSpan
	Pi-Cardia
	Valcare Medical

Orthopedics & Spine

	MCS (Medical Compression Systems)
	NLT SPINE
	CartiHeal

GI and Metabolic Disease

	Exalenz Bioscience
	Endochoice
	Digma

Advanced Surgical Technologies

	Eximo Medical
	Memic

Exits

	Ophthalmic Imaging Systems (Sold to Merge Healthcare)
	Edge Medical (Sold to Claymount)
	PeerMedical (Merged with Endochoice)

SOURCE

http://www.accelmed.co.il/portfolio.php

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Leaders in Pharmaceutical Business Intelligence (LPBI) Group

Funding, Deals & Partnerships: BIOLOGICS & MEDICAL DEVICES; BioMed e-Series; Medicine and Life Sciences Scientific Journal – http://PharmaceuticalIntelligence.com

Medical Devices Start Ups in Israel: Venture Capital Sourced Locally – Rainbow Medical (GlenRock) & AccelMed (Arkin Holdings)

Medical Devices Start Ups in Israel: Venture Capital Sourced Locally – Rainbow Medical (GlenRock) & AccelMed (Arkin Holdings)

This article has two Parts:

Part One: Rainbow Medical, GlenRock Israel

PORTFOLIO

Enopace Biomedical raises $13Million

“Globes”: How was the relationship with Sorin created?

RELATED ARTICLES

Rainbow Medical raising $50m investment fund

Abbot Laboratories and Medtronics invested in the fund, which invests in medical device start ups founded by serial entrepreneur Yossi Gross.

Heart failure treatment co Enopace Biomedical raises $7m

Italy’s Sorin Group made the investment, saying that heart failure is the largest unmet medical need.

Hypertension stent co Vascular Dynamics raises $13.2m

Vascular Dynamics has developed a passive, catheter-delivered stent implant for the treatment of high blood pressure (hypertension).

Rainbow Medical in strategic cooperation with Cleveland Clinic

Rainbow Medical will offer Cleveland Clinic early-stage products and concepts for testing by the hospital’s staff.

Part Two: AccelMed, Arkin Holdings

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Leaders in Pharmaceutical Business Intelligence (LPBI) Group

Funding, Deals & Partnerships: BIOLOGICS & MEDICAL DEVICES; BioMed e-Series; Medicine and Life Sciences Scientific Journal – http://PharmaceuticalIntelligence.com

Medical Devices Start Ups in Israel: Venture Capital Sourced Locally – Rainbow Medical (GlenRock) & AccelMed (Arkin Holdings)

Medical Devices Start Ups in Israel: Venture Capital Sourced Locally – Rainbow Medical (GlenRock) & AccelMed (Arkin Holdings)

This article has two Parts:

Part One: Rainbow Medical, GlenRock Israel

PORTFOLIO

Enopace Biomedical raises $13Million

“Globes”: How was the relationship with Sorin created?

RELATED ARTICLES

Rainbow Medical raising $50m investment fund

Abbot Laboratories and Medtronics invested in the fund, which invests in medical device start ups founded by serial entrepreneur Yossi Gross.

Heart failure treatment co Enopace Biomedical raises $7m

Italy’s Sorin Group made the investment, saying that heart failure is the largest unmet medical need.

Hypertension stent co Vascular Dynamics raises $13.2m

Vascular Dynamics has developed a passive, catheter-delivered stent implant for the treatment of high blood pressure (hypertension).

Rainbow Medical in strategic cooperation with Cleveland Clinic

Rainbow Medical will offer Cleveland Clinic early-stage products and concepts for testing by the hospital’s staff.

Part Two: AccelMed, Arkin Holdings

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