December 13, 2006 03:21 AM | Press Release
Boston, MA — December 13, 2006 — Covington Associates LLC announced today that it acted as financial advisor to Rafael Medical Technologies (“Rafael Medical”) in its equity raise from Possis Medical, Inc. (NASDAQ: POSS), a developer, manufacturer and marketer of pioneering medical devices. The transaction gives Possis an ownership stake in Rafael with an option to purchase the company.
Based in Israel, Rafael Medical is developing its proprietary SafeFlo® inferior vena cava filter. The inferior vena cava (IVC) is the large vein that carries de-oxygenated blood from the lower body back to the heart, and then lungs for re-oxygenation. Certain individuals are susceptible to the formation of blood clots in the deep veins of the legs, a condition known as deep vein thrombosis (DVT) that can then migrate via the inferior vena cava causing pulmonary embolism(PE), an often fatal condition. Rafael’s U.S. patented SafeFlo® IVC filter is a minimally invasive and retrievable filter designed to prevent the migration of blood clots to the lungs and pulmonary embolism. The SafeFlo® IVC filter is currently in the clinical trial stage in the U.S. and Europe, and 510(k) submission to the FDA is anticipated in the next 12 to 18 months.
Each year in the United States, more than 600,000 people suffer from DVT, with the potential of the often fatal complication of a pulmonary embolism. It is estimated that by the year 2010, the U.S. market for IVC filters will total nearly $200 million. According to Robert Dutcher, Chairman, President and CEO of Possis, “[The SafeFlo®] device is synergistic with our strategy to expand the use of our industry leading AngioJet ® Thrombectomy System to treat both DVT and PE. The combination of the SafeFlo® filter and AngioJet ® thrombectomy may revolutionize the treatment of DVT and PE.”
About Rafael Medical Technologies, Inc.
Rafael Medical Technologies, Inc., is an emerging medical device company specializing in the development, manufacture and marketing of highly innovative transcatheter intravascular devices. The company’s devices facilitate simple and safe minimally invasive medical procedures. By concentrating on its key strength — research and development, Rafael Medical seeks to ensure that its devices offer the medical community the most innovative and user-friendly solutions for advancing transcatheter intravascular procedures. Rafael Medical was founded and incorporated in Delaware in June 2000. Research and development activities are conducted by 14 employees at the company’s Israeli subsidiary, R.M.T. Medical Technologies Ltd. in Caesarea, Israel.
About Possis Medical, Inc.
Possis Medical, Inc., develops, manufactures and markets pioneering medical devices for the large and growing cardiovascular and vascular treatment markets. The Company’s AngioJet System is the world’s leading mechanical thrombectomy system with FDA approval to remove large and small thrombus from coronary arteries, coronary bypass grafts, peripheral arteries and veins and A-V grafts and native fistulas. To learn more, please visit www.possis.com.
About Covington Associates LLC
Covington Associates is a specialty investment banking firm founded in 1991 serving business service, consumer, industrial, healthcare and technology companies throughout the country. Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to over $1 billion for both private and publicly traded companies. To learn more about Covington Associates, visit www.covingtonassociates.com.
RAFAEL INTERESTS ON POSS