GE Healthcare, a healthcare unit of the US-based industrial conglomerate, has invested $27.6m in Israel-based ultrasound technology company InSightec at the same time as Jim Davis, an 11 year veteran of the US-based conglomerate has joined as chief executive.
At the same time Tom Gentile, chief executive of GE Healthcare Systems, has become chairman of InSightec. The GE investment came as part of a $30.9m C round.
Israel-based healthcare company Elbit Imaging and venture firm MediTech Advisors are also backers of InSightec.
InSightec is a magnetic resonance imaging [MRI] company, using ultrasound technology for image-guided acoustic surgery.
Jackob Vortman, Insightecfounder, will remain as president and become the business’s chief technology officer, working on research and development (R&D), regulatory affairs and operations.
InSightec will open US commercial offices in Southeastern Wisconsin, where Davis will be based. The R&D and operations teams will continue to operate in Israel.
Davis was vice president & general manager of GE’s MRI business for five years, and served as general manager of the US diagnostic imaging commercial organisation for three years.
Gentile said: “With this additional investment GE and the other investors have renewed their longstanding commitment to the future of InSightec and focused ultrasound technology. InSightec continues to demonstrate its leadership and ability to deliver clinically proven, safe and effective therapy systems and creating non-invasive acoustical surgery centers used by multi-disciplinary groups of physicians for multiple clinical disorders.“
Davis said: “I am delighted to be joining InSightec at this critical juncture. With our second FDA [] approval for pain palliation of bone metastases and CE marking for neurological disorders now in hand, the future is extremely bright for patients and for InSightec. InSightec has pioneered an entirely new industry around a breakthrough therapy platform that uses MRI to guide and control high intensity ultrasound waves to ablate tissue.
“ExAblate offers patients a completely safe and non-invasive therapeutic option to traditional surgery, minimally invasive therapies or radiation. This option not only provides patients with shorter recovery times, but lowers the cost of care at a time when healthcare systems around the globe are under tremendous stress. The new investment will allow us to expand our global reach as well as continuing research and development and clinical studies.
InSightec was founded in 1999.
Earlier this year GE Healthcare reportedly backed InSightec Image Guided Treatment with a $13.75m convertible loan. The loan bore 6% interest and could be converted into equity at the price of the next investment round of the company, or when the loan matures in 2016, news provider Globes said.
GE Healthcare invested in InSightec in 2008, and General Electric has held investments in the company via its GE Capital financial unit, Globes said. In 2009 Insightec raised $15m from Nasdaq-listed holding company Elbit Imaging, with $7.5m invested then, and another $7.5m promised within 12 months.
InSightec raised $30m from Elbit Imaging, GE Capital Equity and venture firm MediTech Advisors in 2007. InSightec was founded in 1999 when GE Healthcare (then GE Medical Systems) and Elbit Medical Imaging transferred their technology to the company.