The medical device startup EndoStream Medical, based in Or Akiva, has been acquired by the Japanese public corporation Kaneka.
According to the company, the initial acquisition amount will be $100 million, with the deal potentially growing significantly depending on future sales. Kaneka stated that they anticipate sales of the product to reach 20 billion yen by 2030 (nearly $500 million).
The merger will combine Kaneka's manufacturing capabilities with EndoStream's technology, and both companies will continue developing EndoStream’s Nautilus implant. Additionally, they will jointly develop new medical devices, primarily for treating cerebrovascular diseases.
Following the acquisition's completion, EndoStream will remain operational in Israel and is expected to become a development center for the Japanese corporation. All current employees will stay, and the company is expected to recruit additional staff.
EndoStream was founded in 2015 by Danel Mayer, who serves as CEO, and Alon May, who serves as CTO. The company employs 12 people and has raised about $5 million from Peregrine Ventures, the only venture capital fund to invest in the company, as well as from a group of prominent American neurosurgeons.
The company has developed an innovative implant for treating brain aneurysms, which has already been successfully implanted in hundreds of patients worldwide. According to medical literature, one in 50 people will develop a brain aneurysm during their lifetime. Most of these aneurysms are discovered only after causing brain hemorrhages, and existing medical devices require blood thinners, which worsen the bleeding.
EndoStream's technology eliminates the need for both blood thinners and anticoagulants, making it significantly safer and more effective for these patients.
Kaneka Corporation, headquartered in Osaka and Tokyo, Japan, employs approximately 11,500 people. The corporation focuses on four strategic business units: materials, quality of life, healthcare, and nutrition. Kaneka’s business operations span a wide range of markets, including pharmaceuticals, medical devices, life sciences, specialty chemicals, photovoltaics, plastics, synthetic fibers, electrical and electronic materials, and food products.