Kfar Saba-based Ornim announced a $20 million equity financing round on Wednesday for its cerebral blood flow device. The investment was led by medtech venture capital firm LongTec HongTao China Ventures LP out of China. Industry players OrbiMed and GE Ventures returned to play a part in the Series C round after previous investments. Ornim last raised in 2014 with a $10 million round.
Besides the obligatory sales team expansion that comes with such investments, a chunk of that cash will be pumped into new clinical studies for Ornim‘s signature product c-FLOW, which is designed to measure cerebral blood flow (CBF) to the brain and perfusion (distribution) of said blood in real time. They claim c-FLOW is the only FDA-approved product for measuring real time cerebral blood flow, which is important in helping diagnose and treat neuro-critical patients through noninvasive means.
“In parallel as we continue to build our commercial presence in the U.S., we are currently in process of obtaining China Food and Drug Administration clearance,” said Ornim’s President and CEO Israel Schreiber, alluding to the company’s hope to now break through into the Asian market, including product launch in China by the second half of 2017.
Their press release also boasted that the product’s tech is built on Ornim’s other proprietary infrared-plus-ultrasound tech dubbed UTLight.
A quick scan of the industry finds few direct competitors to Ornim. Integra NeuroSciences released a product in 2004, which was approved by the FDA, called the NeuroSensor to monitor CBF. According to Transparency Market Research, 52 percent of the 2012 blood flow detector market is dominated by so-called ultrasonic Doppler flow meters, with a share of that working on cranial monitoring for stroke and brain injury patients. Ornim claims to be making an unspecified dent in the U.S. market since releasing c-FLOW in 2015. Persistence Market Research is planning to publish a forecast for the blood flow detector market in October, measuring expected changes in the industry between 2015 and 2021.
Ornim keeps its R&D headquarters in Kfar Saba, while its main sales office is in Foxboro, Massachusetts.