Canedian Laborie makes a strategic investment in Israeli Medi-Tate
7 July, 2016
The Israeli med-tech company developed a unique treatment for Benign Prostatic Hyperplasia (BPH). Medi-tate’s solution does not affect sexual function
Canadian Laborie, a gloabal developer, manufacturer and marketer of medical technology specializing in urological and gynecological products, made a strategic investment in Israli med-tech startup Medi-Tate. The Israeli company developed the iTind – a unique implant for treatment of Benign Prostatic Hyperplasia (BPH), replacing pharmaceutical therapy or invasive surgery.
“This is a very strategic investment for LABORIE,” stated Brian Ellacott, LABORIE President and CEO. “Medi-Tate has developed an innovative technology for the treatment of BPH which overcomes the concerns of BPH sufferers – that most of the available treatment options, whether pharmaceutical or surgical, come with a risk of damaging the functionality of the prostate which in turn can negatively affect sexual function.”
The scale of Laborie’s investment in Medi-Tate was not disclosed in the press release published by the companies, but in articles published prior to Laborie’s announcement reported an immediate investment of $4 million, to be followed by another $4 million within half a year.
According to various sources, Laborie was also given an option to buy out Medi-Tate;s other shareholders within half a year of the second tranche at $100 million valuation, as well as a second option to do so after the Israeli company gets the sought after U.S food and Drug Administration approval for its implant at a $150 million valuation. Laborie can also buyout the company at a valuation of $300 million within 3 years.
Benign Prostatic Hyperplasia (BPH) is a noncancerous increase in the size of the prostate. An estimated 50% of men have histologic evidence of BPH by age 50 and 75% by age 80; in 40–50% of these men, BPH becomes clinically significant. The common treatments for BHP today involve surgical procedures or pharmaceutical treatment which often affect sexual performance.
BHP treatment without side effects
Medi-Tate has developed iTind, a minimally invasive procedure to treat the symptoms of enlarged prostate in men whose primary other treatment options would be pharmaceutical therapy or surgery. The iTind procedure uses a 5 day implant to reshape the prostatic urethra and create new channels through which urine can flow, without the complications associated with drugs and surgical interventions. The iTind system for treatment of BPH is currently only available for sale in the European Union and Canada. iTind is an investigational device limited by federal law to investigational use only in the United States.
Medi-Tate Founder and CEO, Ido Kilemnik stated, “We are very pleased to be partnering with LABORIE. By combining our iTind technology with LABORIE’s Urology expertise and global footprint, we will be better able to quickly bring the iTind solution to the over 500 million aging men impacted by BPH.”
Medi-Tate was founded in 2007 by Oz Kilemnik and Professor Rami biran. The company employs 10 workers. Medi-Tate has raised $8 million from the Xenia fund, which holdes 18% of the company’s shares, as well as from other private investors. In 2015, the company completed another $2 million investment round led by the Xenia fund, Venture Capital and private investors.