Given Imaging

is preparing to float an Initial Public Offering on the Nasdaq during the second quarter of 2001. The company has completed its development of a pill-size camera that helps in the diagnosis of intestinal diseases. The firm plans to raise $70 million, based on a pre-funding valuation of $280 million.

Lehman Brothers is the lead underwriter for the IPO, Credit Suisse and Robertson Stephens will also take part.

Given Imaging was founded in 1998 by Dr. Gavriel Meron. The company, located in Yokneam, developed a Gastrointestinal Video Endoscopy, which is a minimally invasive, disposable imaging capsule for diagnosing small intestine disorders and diseases. Once the patient swallows the pill-size camera (complete with battery, lighting, lens and transmitter), it transmits intestinal images back to the diagnosing physician.

After receiving FDA authorization for clinical trials, the company is now waiting for FDA marketing approval. Given Imaging hopes to begin selling its product in the current quarter.

In October,2000, the company raised $30 million on a post money valuation of $75 million. That round of financing was led by US-based venture fund OrbiMed Advisors LLC, which invested in $15 million worth of equity.

Other Given shareholders include OrbiMed, 20%, Discount Investment Corporation 16%, Elron Electronic Industries and RDC the Rafael Development Corporation.