Alpha Tau Medical, an Israel-based cancer treatment technology developer backed by pharmaceutical services provider Medison Pharma, has agreed to a reverse merger deal with special purpose acquisition company Healthcare Capital Corp.
The combined business will be valued at approximately $1bn through the deal and will receive Healthcare Capital Corp’s listing on the Nasdaq Capital Market, which it secured in a $275m initial public offering in January this year.
The deal is supported by $92m in private investment in public equity financing from Medison and Grand Decade Developments, an affiliate of investment holding company China Grand Pharmaceutical and Healthcare Holdings, as well as Yozma Group, OurCrowd, Regah Ventures and Apax Partners co-founders Alan Patricof and Sir Ronald Cohen.
Alpha Tau’s existing shareholders will retain their stakes in the business, which will represent about 59% of the merged company.
Founded in 2016, Alpha Tau is developing a product that will utilise alpha radiation to treat solid tumours caused by cancer. Alpha particles were previously considered impractical for the treatment of cancer due to their short range.
The company’s Alpha DaRT treatment involves the insertion of a small rod containing Radium-224 atoms into a tumour. The Radium-224 then decays, releasing high doses of radiation to the tumour.
Uzi Sofer, CEO and chairman of Alpha Tau, said: “The completion of this transaction will allow the company to realise its vision and implement the clinical development plans and construction of our manufacturing plants around the world, in order to bring hope to millions of patients around the world.”
Alpha Tau raised $26m in a series B round in June 2020 backed by existing investors Medison Ventures, the corporate venturing vehicle for Medison, in addition to Shavit Capital and OurCrowd. Unnamed private investors and family offices also participated in that round.
Shavit Capital had led a $29m round for the company in 2018 featuring Medison Ventures, OurCrowd, Ronald Cohen and Alan Patricof. The details of its earlier funding could not be confirmed, but Medison Ventures has been described as an early investor in the business.