Industry Archives: Health Care


Early-stage Medical Device Private Equity Fund

This proposed $75 million private equity partnership (the “Partnership”) intends to build a diversified investment portfolio by commercializing university-developed IP related to medical devices, diagnostics and related technologies. The Partnership intends to accomplish this by forming operating teams that will create a series of startup companies around the IP, which will be actively managed and developed into successful businesses. The Partnership estimates that it will create approximately 12 to 18 startup companies with initial investments ranging from approximately $0.5 to $1.5 million and additional follow-on investments of potentially $3 million to $5 million per company. Between years five and ten, the Partnership intends to monetize this portfolio of startup companies through IPOs, private sales of the companies, or asset sales of the underlying technology.

U.S. universities are the largest performers of basic research in the United States, conducting approximately $68 billion of annual research and development each year. However, that $68 billion yields only about 600 new startup companies per year. A great deal of promising university research consistently fails to be developed and commercialized and only a small portion of new IP with commercial applications result in the formation of new companies.

There are two key reasons for the lack of university based startups: (i) a shortage of seed capital, due to the fact that venture capital funds have generally exited from this early-stage market segment, and (ii) the relative absence of applicable business skill sets at universities. In response, a $75 million private equity partnership (“Partnership”) to solve this problem and take advantage of this opportunity by filling the funding gap for early stage capital and by providing the business skills and management that university-based startup companies need to succeed.

The Partnership is being organized by a medtech-specific investment team with significant U.S. university medtech commercialization, company-building and Wall Street experience. A group of professionals has been assembled with the diversified skill sets necessary to execute the business plan to commercialize early-stage, university-based IP in the medical device, diagnostic and related technologies space. The Principals have:
• Long-standing relationships with U.S. universities. In 2012, the principals’ Innovation Cluster schools expended over $13 billion in Science and Engineering R&D and were awarded over 1,000 patents.
• Invested over $50 million in translational research grants to U.S. universities in over 250 separate IP assets, all in the medical device arena. This capital resulted in an additional $1 billion of follow-on capital from angels, venture capital firms, institutional investors, and strategic investors and generated a success rate of over 27%;
• Responsibility for all operational aspects of commercializing a large portfolio of early stage medical device technologies by overseeing a $20 million endowment that will be used to de-risk and commercialize future medical device technologies, included in this is all program management aspects of a portfolio of over 40 early medical device technologies on behalf of one of the University Cluster schools.
• Successfully started, managed, and sold multiple medical device companies;
• Been responsible for sourcing investment opportunities as part of IBM’s Venture Capital Group, which resulted in over $1.5 billion of acquisitions;
• Served on various boards and panels in medical device industry including:
o The Executive Committee for the PPDC, which is a joint program between Children’s Hospital of Philadelphia, Drexel University and the University of Pennsylvania that supports practical medical device projects benefitting children.
o As program manager for the Drexel University – Hebrew University joint translational research program to tackle unmet needs in healthcare.
o The Biomedical Engineering – Medical Devices Panel for Small Business Technology Transfer (STTR) program, a program to stimulate technological innovation in the private sector.

The Partnership also has an Advisory Board of 13 professionals with extensive business, financial, legal, and entrepreneurial expertise including experience in the health care and medical device sectors with impressive technical, medical device, and patent expertise.

The Partnership offers an investor the opportunity to make impact investments through the commercialization of potentially breakthrough medical device IP, with the hope of improving patient care and well being, while at the same time generating high investor returns.

The Partnership has more detailed offering material available. The Principals are also available to meet or a have call to discuss the Partnership in greater detail.
Deal Contact:
International IP Enterprises
Kevin McGuinness
[email protected]
+1 215 421 7899

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USA Home Health Care Agency Rollup

A Management Group headed by a West Point Graduate (BS Engineering, MBA Marketing, Phd. Business) is developing a unique business opportunity in the Home Health Care Industry, which is growing at 9% a year. There is a big push by Medicare to straighten out the industry as it would save them billions a year in hospitalization expenses (1/4 the expenses). The problem is that there are about 14,800 agencies that are run by mom and pop operators and they are plagued by non compliance (record keeping + billing + fraud) issues so they are imposing heavy fines on agencies that operate below standard. Many are selling since they have difficulties complying and are stuck in the 1990s.

The potential industry has not yet been realized and has not kept up with today’s stock market valuations , but there are some corporate entities that see this potential and are buying up agencies and turning them around increasing value by 5 to 10 x original worth. There are numerous profitable agencies that are being sold out there cheap. These individual agencies have revenues of $ 250k, but turned around and run professionally this can easily increase to $ 2 MM.

The Management Group consists of consultants to a number of owners and realize the business potential. They wish to roll up several of the agencies that net an existing combined EBITDA of $2 MM to $5 MM. The Management Group will start with one or two very large agencies that will be used as a base and depending on the speed of purchase and the appetite of a Private Equity partner. The plan is to grow to 40 agencies @ $16 MM and eventually roll up about 150 agencies at a cost of $70 MM+. Presently there is an opportunity to start a base for these buyups with the purchase of two large agencies that are for sale with EBITDA of $1 MM.

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Equity Opportunity in an Indian Branded International Fitness Chain

The Company is the country partner of a U.S based fitness chain with 60 stores operational in India. The Indian business is valued at 100 Crore. Operations started in 2011 and the Company has build a solid presence in India through the franchising route. The Company is looking at a investment of 45 to 50 crore Indian Rupees to launch 30+ company owned stores across India for a stake of 25%.

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Startup Israeli medical device company seeking Series B funding for novel tissue MRI for cancer surgery

Established in 2010, this Israeli based medical device company is implementing a novel approach to using Diffusion Weighted MRI technology for assessment of tissue in cancer surgery. The highly accurate system is compact, portable and affordable for use in the operating room for real-time assessment of the excised tissue for cancer. Breast cancer conserving surgery will be the initial target procedure where between 25% to 30% of the nearly 700,000 annual patients return for a second operation due to not excising adequate tissue for a clean margin.
The system was CE Mark certified in September 2014 and an FDA 510(k) application is planned to be submitted by mid 2015. Commercialization is planned for early 2016. The company management is comprised of an experienced team with prior success in the medical device field. The system consists of the self-shielded portable MRI system and a single patient container made of high tolerance MRI-inert materials; thus providing multiple revenue stream options. The Series B Preferred offering is seeking funding with minimal investment of $200k per investor.

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Molecular Diagnostic Products Manufacturing for Global Markets

The Company is a biotechnology business that is located in Southern California. The Company’s senior management and principal partners are Minh Nguyen and Chinh Vu. Together, these senior executives have more than 50 years of collective experience in the biotechnology and pharmaceutical industries.

The Company is seeking to raise private funding of at least USD20 million to build a manufacturing facility to manufacture molecular diagnostic products to fulfill orders for its H-project: HPV, HIV, HBV, and HCV. These real-time q-PCR assays are required in developing markets such as Asia-Pacific and Sahara-Africa.

Concurrently, the Company plans to develop and produce its first five Point of Care (POC) proteomic diagnostic products:
— TSH assay,
— Testosterone assay,
— PSA assay,
— Free T4 (FT4),
— Free T3 (FT3).

These proteomic assays meet unfullfilled needs within the global POC market. The Company plans to leverage its proprietary technical knowledge, current/existing diagnostic platform technology, and deep global networks to push at least 27 molecular/proteomic assays to selected global markets including South-East Asia, Africa, and Americas.

As insurance for Return of Investment (ROI), Gnosis will use its initial profit to invest into independent clinical labs, which will instantly generate the cash flow to support its product development; and to ready Gnosis for its 5-year plan: having facets to detect and treat diseases and medical conditions, including various types of cancers and viral infections.

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Prenetics Raises $2.65M To Bring Safe, Accurate DNA-Based Prenatal Testing To Asia


You don’t often hear of five-year-old companies raising multi-million dollar seed rounds, but that’s exactly what’s happened in Hong Kong today where biotech firm Prenetics closed $2.65 million for its next-generation prenatal DNA testing.
Prenetics has also got itself a new CEO: Danny Yeung, who led Groupon’s East Asia business until April of this year. Yeung, who is not drawing a salary and participated in the round in a personal capacity, helped bring other investors to the tablet, including 500 Startups, SXE Ventures (a fund Yeung co-founded this year), Groupon’s APAC lead Joel Neoh, and Singapore’s Coent Venture Partners.
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$400m Joint Investment betweenRussian Direct Investment Fund and Turkey’s Renaissance Holding

Joint investments in the healthcare and infrastructure sectors, using public private partnership (PPP) models, transport and commercial real estate projects, the construction of new shopping centres in projects across Russia’s regions – big step toward a bilateral trade goal of $100 billion a year.
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Dubai investor sells Al Noor Hospitals stake, raises $140 million

LONDON/DUBAI, Sept 11 (Reuters) – Dubai private equity firm Ithmar Capital has sold a 7.3 percent stake in Al Noor Hospitals for 10.30 pounds per share, two sources familiar with the matter said on Thursday, in a deal worth 87.55 million pounds ($142 million).
* Dubai private equity firm Ithmar Capital sells 7.3 percent stake
* Overnight sale priced at 10.3 pounds/share – sources
* Above midpoint of price range, 4.1 pct discount to Weds close
* First such sale since July 2013 listing (Confirms price, adds detail, context)

Ithmar offered 8.5 million shares in the healthcare firm in the first such sell-down since the company was listed in July 2013. The sale leaves Ithmar with a 20 percent stake, according to Thomson Reuters data. The sale price was above the mid-point of the original range of 10.00 pounds to 10.50 pounds, and came at a 4.1 percent discount to Wednesday’s closing price of 10.74 pounds.

The overnight sale was managed by Deutsche Bank, which was one of the banks that helped arrange the original flotation last year. One of the largest private healthcare providers in the oil-rich emirate of Abu Dhabi, Al Noor has seen its share price nearly double from its listing price of 5.75 pounds.

Gulf healthcare firms have become popular with investors, given the growing wealth of the region and also the increase in ‘lifestyle diseases’ – for example, five of the six Gulf states are in the global top 10 for prevalence of diabetes.

Al Noor’s other main shareholders are founders Sheikh Mohammed bin Butti Al Hamed and Chief Executive Kassem Alom, who own 28.25 percent and 10.32 percent respectively.

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Ybrain Raises $3.5M To Fund Trials Of Its Wearable For Alzheimer’s Patients

Ybrain, a Korean startup that makes wearables for Alzheimer’s patients, announced today that it has raised $3.5 million in Series A funding led by Stonebridge Capital, bringing its total raised so far to $4.2 million. Co-founder Seungyeon Kim told TechCrunch that the money will be used for clinical trials and the manufacturing of its wearable devices.

The company was founded in 2013 by Kyongsik Yun, a neuroscientist who trained at the California Institute of Technology, and engineers from Samsung. Ybrain is currently conducting clinical trials at Samsung Medical Center in Korea.Read More

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Fitness bracelet Healbe receives $2.6 million investment

East-West Digital News
Project Healbe has received $2.6 million investment from a group of unnamed private investors, along with Dmitry Chalyy, Alexander Tarakanov, Alexey Girin and the Starta Capital Accessor Fund.
Healbe combines a cloud service with fitness bracelet GoBe. Starta Capital first invested $200,000 in Healbe in 2012. Since then the project has received $3 million in total, of which $1 million was put into crowd funding platform IndieGoGo.
“Everything connected with wearable gadgets is undergoing a renaissance at the moment. And that’s not to say none of them were successful in the first place. Competition is coming from smartphones, which now incorporate many similar functions. At the same time, the public is becoming more and more health conscious and active,” stated Mikhail Gurevich, director of investment company 101 StartUp.
This story first appeared in East-West Digital News, a leading online resource on Russian digital industries.

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