Boston Scientific considering $50m Nasdaq IPO for Israeli subsidiary - TheStreet

TheMarker has learned that medical device maker Boston Scientific (Nasdaq: BSX) is considering issuing its Israeli subsidiary Mel Medical Enterprises on Nasdaq in order to raise $50 million.

CEO Dr. Avigdor Lev said today that, alternatively, a private financing round of $20 million from new investors is being considered. A final decision will be made in the next month. It is estimated that the company, in which other foreign investors hold minor stakes, would try to bring in Israeli investors in a private round. Lev refused to comment on the valuation for the purposes of the funding round.

Mel Medical Enterprises was founded in 1998 as a subsidiary of Boston Scientific engaged in the development of minimally invasive procedures for the treatment of both cancerous and benign tumors. The company markets Synergo in Israel, developed by Boston Scientific, which combines drug and physical therapies to fight bladder cancer. During treatment, cells in the affected area are heated, more accurately directing treatment to only affected cells.

Synergo received European Union approval recently and now awaits Food and Drug Administration approval for marketing in the US. The Israeli Ministry of Health has approved the product ad it is in use in three Israeli hospitals.

The company is also developing medical devices for the treatment of other types of cancer and of benign growths, based on the Synergo technology.

Mel Israel is situated in Petah Tiqwa and employs 20 people under Lev¿s management. Mel has a sister company based in Amsterdam, engaged in the marketing and support of Synergo products in Europe.