Startup nation continues to shine in the field of biotechnology while shunning Israeli exchanges.
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Israeli biotech firm MacroCure has announced plans to hold an initial public offering on the NASDAQ stock exchange in New York. The company, which develops cell therapy for treating severe wounds, has filed a prospectus with the US Securities and Exchange Commission. They hope to raise $75 million for a total company valuation of between $200 and $300 million. Credit Suisse Group, Jefferies LLC, Oppenheimer & Co. and Nomura Securities International Inc. are underwriting the IPO.
This marks yet another Israeli startup which has opted not to go public in Israel.
According to the prospectus that MacroCure filed with the SEC, it intends to use the new capital to fund its ongoing late-stage trial of its CureXcell product and to launch manufacturing facilities in America.
Professor David Danon of the Israeli National Blood Service, Magen David Adom, developed the technology for CureXcell. It was subsequently acquired by MacroCure, which enhanced the product’s development.
CureXcell has been approved for use by the Israeli Ministry of Health for the treatment of chronic wounds and was recently made a part of the Israel National Health Insurance list of reimbursable drugs.
Macrocure is currently conducting a phase III clinical trial for the treatment of lower extremity chronic ulcers in adults with Diabetes. CureXcell is an injected formulation of activated leukocytes.
Clinical sites in the US, Canada and Israel are actively recruiting participants in this study.
The company’s former CEO Dr. Mitchell Shirvan said about it, “We believe that we have the most comprehensive approach to the problem of chronic wounds, showing a very significant reduction of the mortality rate in patients with deep sternal wound infections and a markedly improved healing rate for severe pressure ulcers. Our product is on the market in Israel, and it has already been administered by physicians to over 4, 500 patients with severe chronic wounds that would probably have remained with them for years.”
MacroCure is a biotechnology company focused on the development and commercialization of advanced cell therapy products. The company’s primary focus is in the area of wound care. The technology it employs activates white blood cells obtained from young adult’s healthy donor blood.
The activated cells provide the natural environment for wound healing, and ensure that necessary cell activities and factor secretions are maintained as required for wound healing. This concept is the first of its kind in the field of wound therapy.
Based in Petah Tikva, Israel, the company currently manufactures and markets its lead product, CureXcell, in Israel for hard to heal wound treatment. The cell therapy company has its regulatory strategy in place for market approval in North America and Europe.
CureXcell demonstrated favorable results for standard of care when treating various types of chronic wounds. Clinical trials in Israel have shown a 90% reduction of the mortality rate in patients with deep sternal wound infections and a markedly improved healing rate for severe pressure ulcers. Since the introduction of CureXcell to the market, more than 4, 000 patients have been treated in Israel with this advanced cell therapy. No serious adverse events have been reported.
Established in 2008, MacroCure already raised $26 million in funding, $13 million from Viola Private Equity, and Pontifax.