Investing in the Future of Medicine

At an estimated $6.2 billion, Israel’s healthcare technology industry is a global leader in innovations across various medical fields. With over 1,400 digital health start-ups to date, Israel ranks 5th in the world according to the World Index for Healthcare Innovation.?

Investors have taken notice of such success. According to a recent survey conducted by McKinsey & Company group of Israeli venture capital funds and investment bodies, 60 percent of investors said they expect to invest more in digital health in 2022, with only 4 percent expecting to invest less than in 2021. These findings are particularly significant due to record-breaking fundraising throughout 2021.

One particularly notable example of such investment is the recent announcement by Israeli medical investment firm Peregrine Ventures. Together with partners Bristol Myers Squibb, Shaarei Tzedek Medical Hospital, Tel Aviv University, and more, Peregrine recently announced over 300 million NIS (90 million USD) in investment for the development of medical therapeutics, devices, and pharmaceuticals. The fund will also focus on advanced diagnostics for identification, monitoring, and personalized medicine.?

As stated by Eyal Lifschitz, Managing Partner and Co-Founder of Peregrine Ventures, “The establishment of this consortium will enrich and diversify our ability to lead young life sciences ventures, support them financially in every phase of their lifecycle including follow-on investments in their growth stages, and lead them to success in the global market. This is an integrated, global, and elite team that has the confidence in the ability of Israeli entrepreneurs to develop the next generation of successful medical companies.”

Peregrine Ventures‘ startup incubator, Incentive Technology Incubator, already has an impressive track record. 34 of the 60 companies established in Incentive remain active, and the graduated companies have reached a combined $5 billion. Valtech Cardio, a particularly successful graduate, was sold to Edwards Lifesciences for $690 million in 2017.

The recent investment announcement by Peregrine Ventures and partners will further cement Israel as a global center for medical innovation. Below is a list of successful Israeli medical startups who have benefited from Peregrine Ventures’ Incentive Technology Incubator:

Valtech Cardio?specializes in the development of devices for mitral valve repair and replacement. The company’s Cardinal facilitates implantation and suturing that is very similar to that of regular annuloplasty rings, performed through the left atrium. The Cardinal’s ring is attached to a patented, ergonomically designed, flexible handle, which enables the surgeon to control the ring size.

CartiHeal?develops proprietary implants for the treatment of cartilage and osteochondral defects in traumatic and osteoarthritic joints. CartiHeal’s cell-free, off-the-shelf implant, Agili-C, is CE marked for use in cartilage and osteochondral defects. Agili-C is a rigid, biphasic, biodegradable implant. The bone phase of the implant is composed of calcium carbonate in aragonite crystalline form, a well-known biomaterial that enhances bone formation. The cartilage phase is a composite of modified aragonite and hyaluronic acid.

Cardiovalve?is developing cardiovascular replacement devices for minimally invasive surgery. Its flagship system is designed to replace the mitral valve using a transfemoral system. Cardiovalve is designed from the bottom up for transfemoral/transseptal delivery with femoral venous access. This approach offers significant benefits including a short profile for minimal protrusion to the left ventricle, minimizing interference in the cardiac blood flow, and increased safety.

Eximo Medical?is developing hybrid catheter technology for tissue resection in vascular and gastrointestinal endoluminal applications. The company’s proprietary single-use hybrid catheter, Auryon, combines optical fibers that deliver short laser pulses and a blunt mechanical knife.

Digma Medical?is a clinical-stage medical device company developing a novel endoscopic treatment for metabolic disease designed to complement standard medical management. The Digma System ablates the duodenum to interrupt metabolic signaling pathways, reducing insulin resistance and improving glycemic control.

Curesign?is a medical device company aiming to disrupt the way oncologists treat patients with cancer. The company’s solution is based on the integration of sensors with advanced signal processing and big data tools. Curesign’s product, which is in the advanced stages of development, is designed to allow clinical teams to tailor a patient-specific treatment for each cancer patient.

Sources:?Israel Hayom,?Calcalistech,?Freopp,?USA International Trade

Administration,?Israel Hayom,?NoCamels?