Covidien bought Israeli hernia mesh manufacturer PolyTouch Medical Ltd., the companies announced Monday.
Terms of the deal weren't disclosed, but Israeli business paper Globes, citing unnamed "market sources," said the transaction went for between $30 million and $40 million.
PolyTouch was founded in March 2009 by Ofek Levin, Arik Levy and Lena Levin, who won an Israeli entrepreneurship contest. Globes said only $1.3 million has been invested in the company, giving its investors, including Trendlines International Ltd. and Mass Medical Angels, a potentially huge return with the new deal.
PolyTouch created a device called PatchAssist, which helps deliver mesh during minimally invasive ventral hernia repair procedures. It was further developed into AccuMesh, which Covidien launched in March.
PatchAssist received Food and Drug Administration 510(k) clearance in 2010.
"We are thrilled to have found a partner in Covidien for PatchAssist," Ofek Levin said in a statement. "The rapid development of our technological platform and our success in gaining FDA clearance for this important product has resulted in this transaction."
