Investing in mature HealthTech companies
Accelmed is a US and Israel based investment firm, focused on value creation for medical device, diagnostics and digital health companies. Accelmed was founded in 2009 by Mori Arkin and Uri Geiger and invests in small / mid-cap private and public companies.
With its proven track record and large team of accomplished investment professionals, Accelmed’s vision is to create leading HealthTech players and outstanding returns by applying Buyout/Platform and Structured Growth strategies.
Buyout/Platform Strategy: Integrating commercial platforms with innovation and providing growth equity to foster significant value creation
Accelmed brings its acumen in medical devices and its presence in the US and Israel to the Platform Model, which has already been implemented with great success.
Under the Platform model, Accelmed integrates innovative and market-ready HealthTech technologies into existing mature commercial companies that are able to effectively distribute and commercialize the new products.
Accelmed makes significant equity investments of between $20M and $50M per platform. In certain cases, in combination with its co-investing partners, investment can be increased to up to $300M.
As part of this model we acquire a significant interest in established HealthTech companies in the US, Europe with revenues in excess of $30M and which have an experienced direct sales force.
Proceeds of our investments will be used for both organic and inorganic growth through the acquisition and integration of innovative market ready technologies identified and selected by Accelmed and the platform company management.
The acquired Israeli innovative companies will serve as ongoing sources for fast, innovative & cost-efficient R&D.
Structured Growth Strategy: Commercially proven products (>$10M LTM revenue) In need for growth capital and expertise to accelerate.
Under the Structured Growth Strategy, Accelmed invests in mature HealthTech companies with proven commercial traction (>$10M of revenue) in need of growth capital and Accelmed’s support to get to liquidity. Redemption and full recovery protection provisions being applied where applicable.
Our investments are de-risked mature growth stage companies, structured with proper down-side protection.
The Platform Model is best illustrated through Accelmed Growth Partner’s investment in Cogentix (NASDAQ: CGNT). Cogentix offered three legacy product lines developed more than a decade ago and had sales of approximately $40M which were basically flat. It faced competition from larger players, such as Medtronic and had a significant debt ($29M).
Accelmed invested $25M in Cogentix in November 2016 and gained control over the company together with Mr. Lew Pell who converted his $29M of debt into equity. Dr. Uri Geiger became the Chairman of the company and a new CEO (Darrin Hammers) was nominated. In a little more than a year, Accelmed focused the company around its Urology product line, transforming the company into a dynamic, high growth company (18% annual growth) through both organic (investment in S&M) and in-organic (three add-on transactions) activities. The company’s share price has more than tripled in the 15 months since the announcement of the Accelmed investment. In March 2018 the company signed an agreement to be sold to Laborie for $240M in cash.
The Platform Model modus operandi can be also illustrated through the merger between Peer Medical, an Israeli company and developer of the Full Spectrum Endoscope, and EndoChoice, a gastroenterology (GI) player in Atlanta, GA, which had a solid commercial infrastructure but which lacked innovative products.
By merging Peer into EndoChoice and the addition of working capital, Accelmed was able to transform EndoChoice from a commodity player into a cutting edge technology company. The merger, carried out in 2013, led to Endochoice’s emergence as a leading, global, GI player with sales above $75M in 2015 (more than doubled since the merger), high double-digit growth and a presence in more than 25 countries. EndoChoice completed a successful IPO on June 2015 and was sold to Boston Scientific for $220M in October 2016.
OIS is another example of the successful deployment of Accelmed’s Platform Model.
OIS, a California-based ophthalmic imaging systems player, acquired MediVision, the developer of an innovative retinal camera based on Israeli defense technology. The deal was financed and led by Accelmed, which held 44% of OIS’s shares post-merger in 2009. Within two years, OIS was sold, providing Accelmed with an outstanding return.
Mori Arkin is one of Israel’s most successful life science entrepreneurs. He was the principal shareholder and Chairman of Agis Industries (1983) Ltd., from its establishment until its merger with Perrigo in 2005. Agis, one of the leading generic pharmaceutical companies in Israel, merged with US-based, Perrigo in March 2005 in an $850 million transaction. Mr. Arkin has a degree in psychology and philosophy from the Tel Aviv University.
Uri Geiger brings extensive entrepreneurial, management and investment know-how, having created and built many successful medical device enterprises.
Until January 2009, Dr. Geiger served as CEO of Exalenz Bioscience Ltd. (TASE:EXEN), developer of an innovative breath-based technology for diagnosing liver and gastrointestinal disorders that was acquired from Oridion Systems (today part of Covidien) and Dr. Geiger took public in 2007.
He previously co-founded and was the CEO of GalayOr Networks, a developer of optical components, sold in 2003 to MEMSCAP (EuroNext: MEMS). Dr. Geiger is also the founding partner of Dragon Variation Fund, one of Israel’s first hedge funds, which was sold to Migdal in 2007. Dr. Geiger worked on Wall Street during the 1990s, where he gained a broad understanding of capital markets and significant experience, which he put to use after returning to Israel in 1999.
Dr. Geiger was formerly an adjunct professor at the Recanati Business School at Tel Aviv University, where he lectured on private equity and venture capital. He is the author of the books: Startup Companies and Venture Capital (Tel Aviv University Press, 2001) and From Concept to Wall Street (Financial Times – Prentice Hall, 2003). He earned his doctorate from New York’s Columbia University Center for Law & Economics, where he majored in global equity markets. Dr. Geiger served as a major in the Israeli Air Force.
Irit Yaniv is an experienced and accomplished senior executive in the Medtech industry, and has held CEO positions with medical device companies Impulse Dynamics and MetaCure. She plays an important role in leading Accelmed’s early stage portfolio companies, serving either as Chairperson or as an active board member.
Dr. Yaniv holds an MD degree from the Ben-Gurion University and an MBA from the Recanati Business School at Tel Aviv University.
Mr. Ben Oren brings more than 20 years’ experience in R&D and management in the medical equipment field.
Mr. Ben Oren assists Accelmed’s portfolio companies in various development tasks. Prior to joining Accelmed, he served as the CTO of Exalenz Bioscience Ltd., (TASE:EXEN) a developer of an innovative breath-based technology for diagnosing liver and gastrointestinal disorders. Prior to that, Mr. Ben Oren held various positions from project manager to CTO at Oridion Medical (SWX:ORIDN).
Earlier in his career, he worked as a senior physicist at Scitex Ltd. (NASDAQ:SCIX) and participated for five years in applied research at the laser center of Hadassah Hospital, Ein-Kerem, and the Hebrew University.
Mr. Ben Oren is the author of more than 20 patents and patent applications in the field of medical technologies and electro-optics. He holds a master’s degree in applied physics and the science of materials (summa cum laude) from the Hebrew University of Jerusalem.
Amir Blatt brings wide experience in both the investment and medical device fields. Prior to joining Accelmed, Mr. Blatt was an analyst at Goren Capital Group, advising investors, TA-25 companies, and the Government of Israel on M&A activity.
Previously, Mr. Blatt held several sales and marketing positions with Dover Medical Devices, the J&J distributor of diagnostics equipment in Israel. Mr. Blatt graduated as a biotechnology engineer from the Technion-Israel Institute of Technology in Haifa, and holds an MBA from the Recanati School of Management at Tel Aviv University.
Lior Shav has nearly 15 years of experience in business development and investment banking. Mr. Shav has led and been involved in dozens of financial transactions including M&A deals, private placements, private equity transactions, PIPEs and others.
Prior to his role with Accelmed, Mr. Shav established and managed Shav Consulting, Israel’s leading Healthcare business consulting firm. Previously, he managed the corporate finance activity of Meitav Capital Markets (at the time, Israel’s largest private investment management group) and served as VP Business Development at two medical device startups, leading both companies from foundation and early stage to commercial agreements and sales. Mr. Shav is a co-founder of ETView Ltd. (TASE listed, med-tech company) as well as two other startup companies. He holds a B.Sc in Industrial Engineering & Management from the Technion-Israel Institute of Technology, and an M.A in Political Science from Tel Aviv University.
Mr. Shav now utilizes his broad experience in leading private equity investments and acquisitions for Accelmed and its portfolio companies.
Dr. Rafael Torgovicky is a physician-entrepreneur, executive and investor, with over 15 years of clinical and industry healthcare experience. He received his MD and MBA degrees from Tel-Aviv University and obtained postgraduate training in Pharmaceutical Medicine at Basel University.
Prior to Joining Accelmed’s US team in 2018, Dr. Torgovicky held leadership positions in the pharmaceutical industry, with Novartis, Merck, and most recently Eli Lilly, where he served as Vice President, External Innovation – Oncology.
Dr. Guy Ohad is a radiologist with rich experience in the field of technology and medical devices. His most recent positions include CEO at POP Medical solutions a woman’s health company developing a minimal invasive device for treatment of pelvic organ prolapse.
Before this he was VP of clinical and business development of the CR product line at Orex a CSH company (Former Kodak). In addition he served as a consultant to several medical device companies and served as clinical advisor at Medica VC.
Dr. Ohad holds a M.D. from Tel Aviv university.
Susan Alpert, formerly Chief Regulatory Officer of Medtronic, is Accelmed’s senior regulatory and clinical advisor. She provides services to Accelmed on a part time (50%) basis, working with Accelmed portfolio companies as well as assisting Accelmed in reviewing and evaluating investment opportunities.
Dr. Alpert has held the positions of senior vice president and chief regulatory officer at Medtronic until 2012 and had a similar role at C.R. Bard (NYSE:BCR). Before joining Medtronic, she held a number of positions with the FDA including as Director of the FDA’s Office of Device Evaluation.
Dr. Alpert holds MD and Ph.D. in infectious diseases from the NYC School of Medicine.
Nir Gilad is involved with investment analysis and ongoing portfolio management. Prior to Accelmed, Mr. Gilad worked at the Israeli Ministry of Defense, as a Project Finance Analyst, leading the national project of relocating the IDF’s units to the south of Israel. Previously, he served as a Financial Analyst at the IDF’s elite technology unit, leading the unit’s economic analysis (Awarded with an honor for excellence).
Mr. Gilad is an Associate Mentor at the Global Business Studies Program at Coller School of Management at Tel Aviv University and he holds a BA in Economics and an MBA, both from Tel Aviv University.
Accelmed enjoys close collaboration with a network of seasoned executives who have built, led and sold companies for billions of dollars. These executives assist Accelmed in identifying and analyzing potential opportunities and may serve in key leadership roles in future platform companies.
STRATA Skin Sciences (NASDAQ:SSKN) is a US based dermatology company. Its products include XTRAC and VTRAC devices used for the treatment of psoriasis, vitiligo, and other skin disorders.
Exalenz, (TASE: EXEN), is a leading provider of non-invasive diagnostic, monitoring and prognostic solutions for a wide range of GI and liver disorders with two focused indications – initially, H. pylori and NASH
EndoGastric Solutions is a medical device company developing and commercializing innovative, evidence-based, incision-less surgical technology for the treatment of GERD.
Corvia is developing the first transcatheter device to treat congestive heart failure (CHF). The company’s innovative IASD™ (InterAtrial Shunt Device) System is designed to relieve increased left atrial pressure.
Valcare Medical was founded in 2012 and is dedicated to designing, developing and commercializing devices and accessories for minimally invasive treatment of heart valve disease.
SoniVie is developing an advanced denervation solution to treat pulmonary hypertension.
Cynerio secures healthcare providers’ weakest link – connected medical devices & their clinical ecosystem, by using the industry’s first & only technology which combines device behavior modeling with medical workflow analysis to ensure patient safety and data protection
Eximo Medical is developing a novel medical device based on a single use hybrid catheter for various medical applications that require precise and safe material removal. These applications have substantial and growing markets.
Memic innovative surgery ltd is an early stage robotic company that develops an innovative surgical robot. The Surgical robot is based on a novel design which enables intuitive control and a new surgical approach for laparoscopic procedures.
NitiNotes is developing advanced non-surgical bariatric solutions.
ReVamp is offering an innovative temporary catheter for Acute Heart Failure (AHF), primarily targeting diuretic resistance patients
CartiHeal is the developer of proprietary, biocompatible and biodegradable off-the-shelf implants, for cartilage, bone regeneration and treatment of osteoarthritis. CartiHeal’s acellular implant is arthroscopically press-fit within a cartilage or osteochondral defect in a single-stage procedure and supports vessels formation followed by rapid invasion and adhesion of bone marrow mesenchymal stem cells. The CE marked implant has significant load-bearing capability, allowing patients faster rehabilitation.
EndoSpan Ltd. Is a VC-backed clinical-stage medical device start-up, developing a novel endovascular system, intended to provide the next generation in Endo-Vascular Aortic Aneurysm repair (EVAR), including for the aortic arch and ascending aorta lesions. EndoSpan’s system aims to achieve a much smaller crossing profile compared with contemporary devices. The system is intended for unilateral and purely percutaneous approach, thus simplifying and significantly shortening the procedure.
Nitiloop has developed the NovaCross™, FDA cleared micro-catheter, a robust “first-choice” tool for treatment of complex lesions in coronary and peripheral vascular, including below the Knee (BTK) CTO. Its technology provides superior operator-controlled positioning and support in multiple applications.
Pi-Cardia Ltd. is a medical device start-up company developing a novel low profile catheter for the treatment of aortic stenosis. The company’s proprietary technology is based on delivering mechanical impact for creating fractures in valve calcifications, without injuring the surrounding soft tissue. This treatment, which only takes several seconds, is intended to increase the valve effective orifice area without the need to replace the valve.
Cogentix (NASDAQ:CGNT) is a US based global urology focused company. Its main areas of activity are in overactive bladder (OAB), advanced endoscopy systems and urethral bulking agents. Sold on April 2018 to Laborie Medical Technologies, an Investor AB company.
A global platform-technology company focused on Gastrointestinal (GI) endoscopy. Endochoice has merged with Peer Medical, an Israeli company which developed of a unique endoscopy technology to form a leading player in the GI industry. Endochoice is headquartered in Alpharetta, Georgia with its R&D center based in Israel. Endochoice completed a successful IPO in June 2015 and was sold to Boston Scientific in October 2016.
Ophthalmic Imaging Systems (OIS) is a leading provider of ophthalmic imaging and informatics solutions. OIS was the first investment of Accelmed (closed Q2/2009) and was sold two years later (Q2/2011) to Merge Healthcare (now IBM).
Through its multi-modality platform, Volcano Corporation (NASDAQ: VOLC) is the global leader in intravascular imaging for coronary, peripheral and physiology applications. Accelmed took a role of an active investor in the company which contributed to a successful acquisition by Philips only a few months later.
Edge Medical Devices is the developer and manufacturer of Plasma DR flat-panel X-ray detector technology for digital radiography. Edge was sold to Claymount in Q3/2011 (now Varian Medical Systems).
MCS (Medical Compression Systems) develops, manufactures and markets palm-size, battery-operated pneumatic compression therapy systems targeted at the DVT prevention field and is the first company to offer the market a new class of Continuous Enhanced Circulation Therapy (C.E.C.T) that can replace medication therapy as the current standard of care. With the only clinically proven VTE (blood clot) prevention device to work independently of pharmaceutical agents – and with a price structure on par with drug cost – the company has already penetrated dozens of leading hospitals in the U.S. The company’s products are protected by numerous patents, have FDA clearance and are CE approved. MCS was sold to Zimmer Biomet in May 2017.
NLT Spine develops minimally invasive surgical (MIS) products for treating degenerative spinal conditions. Based on a patented “nonlinear” principle that allows large implants and instruments to be inserted through a small incision in the body, NLT Spine increases patient safety and surgeon control while reducing postoperative complications. NLT Spine has nine patents issued and pending. NLT Spine was sold to Seaspine Holdings Corporation (NASDAQ:SPNE) in August 2016.