The ingestible pill-sized video camera from Given Imaging (Nasdaq:GIVN) will set out on a secondary offering in three months time.

Shareholders in the company, including Discount Investment Corporation, Elron Electronic Industries (Nasdaq:ELRN) and RDC will take this opportunity to make a sale offer of some of their Given shares. Discount Investments, whose stake in the company is 14.6%, today announced it would sell 510,000 shares. Another 1.2 million shares held by Discount Investments subsidiaries Elron and RDC, will be sold as well.

The planned Given Imaging issue, shareholders offer included, is of 3 million shares, which will constitute 11% of the company's shares. The share's market price is $14.36, and assuming a similar issue price, the company is about to raise $43 million and $100 million in a matter of three months.

Lehman Brothers (NYSE:LEH) investment bank, which led the company's first successful $60 million issue at $12 per share, will also lead this issue. Discount Investments expects this issue to be a success as well. If the underwriters exercise their over-allotment option, the three Discount Investment Corporation companies will add 800,000 shares to their sale offer.

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The company yesterday reported its Q4 results. The company reported 2001 revenues, for the two last quarters only, of more than $4.5 million. The company¿s net loss totaled 26 cents per share, worse than the average forecasts of 18 cents per share. The banks estimate the company will not become profitable before 2003, yet its revenue rate could lead to future surprises.

Gavriel Meron, now CEO of Given, and Gavriel Idan, now its CTO, founded Given Imaging in 1998. The Yokneam based company developed an ingestible capsule containing a video camera that makes its way into the lower intestines and sends data to the treating physician via a transmitter. The capsule helps diagnose digestive disorders now detected using painful, invasive methods or through trial and error.

Estimates are 19 million people in the U.S currently suffer from digestive disorders ranging from internal hemorrhages to chronic infections. Of the 19 million, 1.5 million undergo some procedure to help diagnose the problem, one of which is X-rays. Given Imaging claims however that none of the existing methods can identify tissue, and are therefore far from accurate.