Having set up an incubator for medical devices a while ago, Royal Philips and Teva Pharmaceutical Industries are set to collectively invest about US$26.5 million into Israeli startups specializing in medical devices and health technology. The funding will be staggered across a period of eight years. Christened Sanara Ventures, the incubator will has already pumped funds into two startups in Israel. The two companies—Kaleidoscope Medical and MGD—will be the first ones to be funded.
Kaleidoscope Medical has developed a novel X-ray system for radiation shielding that can be used during catheterization procedures. MGD, on the other hand, will receive funding because the companies see lucrative potential in its portable medical device that measures lung function in patients suffering from chronic obstructive pulmonary disease or COPD.
Besides these two promising investments, the incubator has reported made two other investments, details of which are not being made public just yet. This was confirmed by the chief executive officer of Sanara Ventures, Assaf Barnea, as reported by leading news sites such as the Economic Times. That’s not all. By the end of 2015, the incubator will being two or three other startups under its wings.
The CEO of Netherlands-based Philips, Frans Van Houten, stated that the venture will not only help harbor new talent, but it will also be a means through which the company can keep abreast of the latest developments and tap into opportunities that are in line with its health technology business.
Teva’s CEO, Erez Vigodman, said that consumers are now devoting more time and money to keeping fit and monitoring their own health. This creates a conducive environment for the growth health technology startups – and this very factor has emerged as the force driving the health technology space. In view of this emerging trendline, the company said that it cannot keep its business model limited to finding a new entity. Teva is one of the leading manufacturers of generic drugs in the world.