Alzheimer treatment developer Neuronix Ltd. today filed a draft prospectus to raise NIS 25 million on the Tel Aviv Stock Exchange (TASE). Market sources believe that the company's offering will succeed, and that it will be held at a company value of NIS 90-100 million, after money.
There has been no IPO by a life sciences company on the TASE in 18 months, although several companies have filed draft prospectuses. However, none have followed through with an offering. Three life sciences companies are now moving ahead on possible offerings this year.
Neuronix has developed a medical device, neuroAD, based on its Non-Invasive Cortical Enhancer (NICE) computer game technology. The patent-pending technology stimulates the affected brain regions concurrently interlaced with cognitive training, targeting specific brain regions affected by Alzheimer’s disease. The stimulation induces long-term potentiation (LTP), which is associated with learning and memory processes, and results in a measurable cognitive improvement after a few weeks of treatment.
The magnetic stimulation of brain is similar to Deep TMS (transcanial magnetic stimulation) technology developed by Brainsway Ltd. (TASE:BRIN) for the treatment of neurological disorders.
Neuronix has conducted four small-scale clinical trials on Alzheimer's patients (8-16 patients per trial). All the trials achieved their endpoints, showing statistically significant improvement, compared with the control group.
Neuronix has obtained CE Mark for the neuroAD and launched European sales in the second half of 2012, selling four devices for $830,000. In April, the company began a clinical trial under US Food and Drug Administration (FDA) protocols, in order to register the product for US sales.
Neuronix estimates that it will report $1 million in sales in 2013 and $3 million in 2014.
Neuronix was founded in 2008 by neurologists Prof. Jose Rabay and Dr. Jonathan Bentowitz. The company has raised $10 million to date from private investors, mostly French Jews, and from the Office of the Chief Scientist.
Kadimastem
Stem cell treatment developer Kadimastem Ltd. is also preparing a draft prospectus for an IPO, which it has not yet published, to raise NIS 20 million on the TASE, at a company value of NIS 70 million, before money.
Kadimastem was founded by chief scientist Prof. Michel Revel and chairman and CEO Yossi Ben-Yosef. Revel, of the Weizmann Institute of Science, who discovered Rebif, a treatment for multiple sclerosis, and a major competitor of Teva Pharmaceutical Industries Ltd.'s (NYSE: TEVA; TASE: TEVA) Copaxone. The company is engaged in the cutting edge of stem cell research: growing specialized human cells and tissues from human embryonic stem cells.
Kadimastem is in the early stages of developing two regenerative medicine products to repair tissues and organs affected by diseases: implanting insulin-secreting pancreatic islet cells as a treatment for insulin-dependent diabetes; and a multiple sclerosis treatment. Germany's Merck Serono has invested €5 million in Kadimastem to jointly use of Kadimastem's drug-screening platform to discover new oral drugs for the treatment of the multiple sclerosis. The company has also raised $5 million from private investors and $2 million from the Office of the Chief Scientist.
Medispec seeks underwriters
Sources inform ''Globes'' that Medispec Ltd., a developer of shockwave technologies to treat a range of illnesses, has begun to seek underwriters. The 20-year old company has $15-16 million in annual turnover, and is profitable. The company's devices are used to treat kidney stones and cardiac revascularization. Its latest product treats erectile dysfunction. Last year, the company announced that it planned to raise $10 million at a company value of $50 million, after money.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2013
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