Elbit Medical Imaging(EMITF) Increases Stake in InSightec
Written by: Aaron Katsman | November 30, 2007
Aaron Katsman
www.IsraelNewsletter.com
Elbit Medical Imaging’s(EMITF), subsidiary InSightec has raised$30 million in an internal financing round. Investors were Elbit Medical Imaging subsidiary Elbit Ultrasound (Netherlands) BV, General Electric Company (GE) subsidiary GE Capital Equity Holdings Inc., MediTech Advisors LLC, and some InSightec directors and officers. Elbit Ultrasound invested $19.8 million, boosting its stake in InSightec to 53%.
InSightec develops a product that combines MRI technology with focused ultrasound in order to treat serious diseases such as bone, liver and brain tumors, without the invasive procedures that are currently used.
The question needs to be asked when they plan on an IPO? There have been rumours for the better part of 2 years as to a billion dollar IPO but to date nothing has been done.
In an interview with Globes, Elbit Medical Imaging president Shimon Yitzhaki answered the question:
Globes”: You originally planned to float InSightec in 2005 and sales haven’t risen substantially since then. Are you disappointed?
Yitzhaki:“Not at all. InSightec is an amazing breakthrough company. The board tells us that it will be worth billions, maybe more than all our real estate deals. Just a little patience is needed.”
Yitzhaki noted, “We believe that with the products in the pipeline and insurance reimbursement, within two or three years, we’ll reach hundreds of millions in sales.”
Will you reopen your IPO plans?
“We’re waiting on the IPO until we have insurance reimbursement from a number of insurers as well as FDA approval for at least one of our cancer treatments. There are also other options besides an IPO.”
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Disclosure: Author has a position in EMITF. He has no positions in any other stock mentioned as of 11/30/07.
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Aaron Katsman is the lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
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