Healthcare Industry News: IV Catheter
News Release - January 23, 2007
Washington Area Venture Capital Firm Funds Innovative Flexicath IV Catheter
New Technology Dramatically Lowers IV Catheter Risk of Infection, Procedure Cost and Patient DiscomfortROCKVILLE, Md.--(HSMN NewsFeed)--The Zitelman Group announced today it has led a group of investors in providing $754,000 of preferred equity to Flexicath, LTD, an Israel-based health care technology firm.
The funding will be used to conduct clinical trials and marketing for an Intravenous (IV) catheter that Flexicath has developed to meet market needs for both mid-range (up to 15 days) and PICC catheterizations.
The patent pending Flexicath Firm-grip(TM) eliminates the need for a sterile field by enclosing the catheter in a special self-contained package that allows the insertion of the catheter without removing it from the sterile package until the procedure is complete and the catheter is in the vein.
Flexicath's new product makes the process faster and less expensive, and allows any member of the medical team--paramedics, nurses, and of course physicians--to insert the catheter. Thanks to the ease of insertion, the product will also provide relief to patients who require IV treatment and spare them the discomfort and increased risk of infection from having a new IV inserted (in a different vein) every three to four days, as is current practice.
According to a Flexicath spokesperson, more than 42.5 million IV drug procedures are performed each year in the United States alone; the figure for the rest of the world is more than twice this number--nearly 100 million. In financial terms, this represents a market of about one billion dollars a year.
Rick Zitelman, principal of The Zitelman Group said, "We are very impressed with Flexicath's technology, potential applications and the significant benefits it offers patients and health care providers."
The company has applied to the FDA for approval of the product and expects to receive approval during the first half of 2007. The company is also working to obtain a license from the EMEA (the European Agency for the Evaluation of Medicinal Products).
Flexicath (www.flexicath.com) was established in 2004 in the Misgav Technology Center, an incubator program located in Israel. The Company has received previous funding from the Office of the Chief Scientist and Trendlines Israel Fund.
The Zitelman Group ("TZG" www.tzg.com) is a Rockville, MD based Merchant and Investment Banking firm. Started in 1985, TZG takes a lead investment position and brings in other partners to co-invest in private debt and equity transactions. The company specializes in early stage companies, providing strategic guidance and helping to turn entrepreneurs into successful businessmen and women. TZG also has an office in Jerusalem, Israel.
Source: Zitelman Group
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