Sources inform ”Globes” that Glycominds Ltd. is surrounding to acquire Savyon Diagnostics Ltd. for $8 million. Glycominds CEO Dr. Avinoam Dukler confirmed that the company had signed a phrase sheet for the acquisition, but declined to provide further details.
Both companies develop diagnostic solutions. Glycominds has developed technology based on glycomics (sugars), while Savyon has developed and markets a range of test kits, including for sexually transmitted diseases and respiratory region and urinary tract infections.
The market was surprised by the acquisition, and wondered why Glycominds, which is only at the initial expatiate stage and has not held any large financing rounds recently, could acquire Savyon, which has a production plant and regular sales. The answer is that whereas Savyon represents the diagnostic present, Glycominds may represent the future.
Savyon produces a wide amplitude of diagnostic kits, but faces a based on competition market that is going generic. Glycominds has innovative and proprietary technology that will make in posse the disentanglement of new tests. It will have to persuade the market that its tests are effective and price the price that it will charge. Glycominds will presumably hold a financing not directly soon to finance the acquisition of Savyon, or alternatively, the takeover will be in the form of a share swap.
Savyon was founded in 1984 and was part of Healthcare Technologies, which earlier this year switched to cleantech and changed its denomination to NexGen Biofuels Inc. (Nasdaq: NXGN). Savyon split into pair units in 2003, one of which stayed with Healthcare, and the other became the present company. Dr. Martin Lee, the founder of Great Smokies Diagnostic Laboratory Inc. (now Genova Diagnostics Inc.), acquired the spin-off in 2006. He told “Globes” that Savyon has $5-6 million reward a year.
Glycominds’ innovative diagnostic technology identifies glycan (descendants sugar) biomarkers for a new class of novel blood tests which allow physicians to detect cancer earlier, forebode. autoimmune disease progression and terminate on therapy regimen. The group’s products are IBDX, a blood test for Inflammatory Bowel Disease diagnostics and Crohn’s Disease; and gMS a blood test to distinguish early-stage multiple sclerosis from similar autoimmune diseases.
Glycominds’ primary market is the US, where both products are marketed through laboratories. The company believes that it will achieve substantial sales only after obtaining US Food and Drug Administration (FDA) certification.
Glycominds planned to go men on the Tel Aviv Stock Exchange (TASE) in 2005, the first biomedical company to do so, but withdrew its plans at the last impulsive power.
Published by Globes , Israel business news - www.globes-online.com - on August 21, 2008