Merging Med-Tech innovation with global commercial platforms
Accelmed is an investment firm focused on value creation for medical device companies and technologies. Accelmed was founded in 2009 by Mori Arkin and Uri Geiger and has invested over the past years in nearly 20 small and 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 med-tech players by merging commercial platforms with small innovative growth companies, predominantly from Israel.
Integrating commercial platforms with innovation and providing growth equity to foster significant value creation
Accelmed brings its acumen in medical devices and its dominant presence in Israel to the Platform Model, which has already been implemented with great success.
Under the Platform model, Accelmed integrates innovative and market-ready medical device technologies into existing commercial companies that are able to effectively distribute and commercialize the new products.
Accelmed makes significant equity investments – or a combination of equity and debt – 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.
We intend to acquire a significant interest in established medical device companies (in the US, Europe and potentially in China) 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 medical device technologies identified and selected by Accelmed and the platform company management.
The acquired Israeli start-ups will serve as ongoing sources for cost-efficient R&D as, based on Accelmed’s proven experience with Israeli R&D teams, they are not only innovative but also operate in a faster and more efficient way than their peers overseas.
The Platform Model modus operandi is best illustrated through the merger between Peer Medical, an Accelmed portfolio 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 $60M in 2014 (doubled since the merger), high double-digit growth and a presence in more than 25 countries. EndoChoice completed a successful IPO on June 5, 2015 and is traded, reflecting significant return to Accelmed.
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.
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.
Dr. Rotem holds an MD degree from the Technion-Israel Institute of Technology in Haifa, Israel as well as a B.Sc. from Tel Aviv University in Industrial Engineering and another in Biology.
In addition, Mr. Rotem was formerly professional long-distance triathlete who has participated in numerous international competitions.
Mr. Rotem’s strong academic background and accomplishments in professional sports give him a unique perspective on health and athletics, making him a valued asset to the accelmed team.
Madav Shimoni is close to completion of his medical studies at the Ben Gurion University (BGU) of the Negev in Beer Sheva.
Mr. Shimoni previously served as a project manager at an IDF elite technological unit, gaining significant experience in developing and designing complex mechanical elements. In addition, he is an Anatomy Teaching Assistant at the Medical School for International Health (MSIH) – a collaboration between BGU and Columbia University Medical Center. He also engages in active volunteering work, including medical workshops for populations in need.
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.
The portfolio reflects a diversity of strategies employed in Accelmed’s first and second funds.
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.
Nitiloop is dedicated to the development of cutting edge vascular support micro-catheters. Our technology provides superior operator-controlled positioning and support in multiple applications. Nitiloop brings to the market ‘first choice’ products to overcome difficult lesions.
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.
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). 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.
Eximo Medical Ltd. is an early stage start-up company founded in 2012. The company 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.
SoniVie is developing an advanced denervation solution to treat pulmonary hypertension.
MCS 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 Inc., the company’s subsidiary, is located in the U.S.
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.
CartiHeal is the developer of proprietary, biocompatible and biodegradable off-the-shelf implants, for cartilage and bone regeneration. 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.
A global platform-technology company focused on Gastrointestinal (GI) endoscopy. Endochoice has merged with Accelmed’s Peer Medical, a developer 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.
Digma Medical is an exciting new medical device startup that is focused on developing innovative solutions to metabolic diseases.
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.
Edge Medical Devices is the developer and manufacturer of Plasma DR flat-panel X-ray detector technology for digital radiography. Edge was the second investment of Accelmed (closed Q2/2009) and was sold two years later (Q3/2011) to Claymount, a leading multi-national X-ray player backed by ABN-Amro.
Accelmed invested in Peer medical on Q2, 2010. Peer is, a developer of a proprietary video system and Full Spectrum Endoscope that greatly expands the field of view during endoscopy and colonoscopy, helping gastroenterologists detect more cancerous polyps and abnormal lesions. Peer medical merged with Endochoice (Q4,2012), a global GI platform-technology company, and is now operating under the name of Endochoice, serving as its R&D center in Israel.
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 (NASDAQ: MERGE).
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.