Boston Scientific buys Israeli medical system co SoniVie

Medical system big Boston Scientific has introduced that it has signed a definitive settlement to accumulate Israeli medical system firm SoniVie for a right away cost of $360 million in addition to milestone funds of as much as $180 million. Boston Scientific already has a ten% stake within the firm.

The most important winners from the deal are the heirs of the late Shmuel Almagor, Zvika Slovin, previously of Elron, and European enterprise capital funds Supernova Make investments, Andera Companions, TechWald, and Omega Funds. SoniVie has raised $85 million to this point.

SoniVie has developed a tiny intravascular ultrasound system that may selectively denervate nerves round sure blood vessels to deal with medical situations associated to hypertension. Amongst different issues, the system can deal with nerves across the kidney, one of many efficient strategies for treating blood stress. At present, there are units available on the market that selectively injury nerves across the kidneys, however they use radiofrequency radiation, not ultrasound. Boston Scientific reported that ultrasound vitality has the flexibility to penetrate deep into the tissue, making the therapy more practical and sooner.

Final 12 months, SoniVie reported optimistic outcomes from an preliminary medical trial within the US and Israel, and not too long ago started a pivotal trial, which can be ample for it to submit the product for FDA approval.

SoniVie was based in 2014 on the initiative of the Accelmed Fund, led by Uri Geiger, as a part of its technique of constructing corporations after figuring out a necessity from giant corporations. The know-how was initially developed at Cardiosonics, and Accelmed acquired the rights to develop the know-how solely for the sector of pulmonary hypertension therapy. After Cardiosonics itself went by a disaster, at a time when the market was skeptical concerning the thought of denerving for the therapy of blood stress, SoniVie’s present investor group led the funding within the firm and likewise acquired Cardiosonics know-how, from which it was spun off, together with the know-how for the sector of denerving within the kidney space, its lead product at present.

SoniVie has workplaces in Rehovot and New Jersey and is at present managed by Tomaso Zambelli, previously an government at giant medical system corporations. The know-how was developed by Ariel Sverdlik, who subsequently additionally invented the medical aesthetics know-how of Sofwave (TASE: SOFW), additionally primarily based on ultrasound.

“I used to be fortunate”

Sverdlik, who developed the know-how with SoniVie VP R&D Or Shabtay, remembers the way it all started. “I used to be fortunate. I launched into a doctorate in medical engineering within the subject of ultrasound, with the thought of ??utilizing intravascular ultrasound to forestall coronary heart assaults. Tel Aviv College’s commercialization firm, Ramot, linked me with an investor named Shmuel Almagor. He was a cigarette importer, and maybe wished to put money into the sector of coronary heart illness prevention to cope with emotions of guilt.

Israeli medical system co SoniVie raises $60m

“Shmuel requested me – how a lot cash would you might want to get FDA approval? I used to be naive, I mentioned: $2 million. After 5 minutes he calls me, and says ‘that is tremendous’. I mentioned – what’s tremendous? And he mentioned: I talked to my spouse and he or she agreed. We are going to put money into the corporate.” Almagor invested over $10 million within the firm alongside the way in which, however didn’t dwell to see the exit.

Initially, the goal of the know-how was to forestall the buildup of calcium deposits within the arteries. “However at some point I used to be at a convention, and I watched a lecture by a brand new firm known as Ardian. They talked a few know-how for denerving nerves, which they mentioned might seize 5-10% of a $50 billion market. And through the lecture I noticed that with ultrasound, I might do it higher.”

“All of the funds determined that this subject was nonsense”

Ardian was bought for $800 million to Medtronic, and the market aroused nice curiosity. Sverdlik continues, “Abbott invested $16 million in CardioSense in phases.” However then, following Medtronic’s unsuccessful trial with the know-how, your entire subject crashed. “Following the failure of the trial, which was not well-planned, all of the funds determined that this subject was nonsense and that it did not actually work. Abbott stopped injecting the cash. After we requested them what to do with their shares, they mentioned – no matter you need.”

The entrepreneurs started looking for capital, till they discovered the AccelMed Fund, which wished to develop the product for the sector of hypertension in well being. AccelMed based SoniVie and purchased the rights to this know-how, and subsequently steadily acquired the remainder of the know-how. This was concerning the level at which Sverdlik left the corporate.

“I labored like loopy, and I did not see any cash for 5 years,” he says. “I instructed them, ‘I am completed, I would like one thing new.'” As a part of our fund elevating efforts, I had met Dr. Shimon Eckhouse, and once I left Cardiosonics, I turned to him and mentioned, ‘Let’s do one thing.’ He mentioned, ‘Your ultrasound, can it denerve the underside layer of the pores and skin with out damaging the highest?’ I mentioned, ‘Completely.’ And so Sofwave was born,” which is at present traded on the Tel Aviv Inventory Trade.

Revealed by Globes, Israel enterprise information – en.globes.co.il – on March 4, 2025.