Bethel Finance: ActiViews in talks with major US medical device co

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Sources inform ''Globes'' that ActiViews Inc., which has developed a guided needle for pulmonary biopsies and tumor surgical procedures, is in advanced talks on a joint development, marketing and distribution deal with a major US medical devices company. ActiViews declined to comment on the report.

The sources added that, as part of the deal, ActiViews will receive an immediate payment of several million dollars. Additional revenue could reach tens of millions of dollars in milestone payments and royalties on sales.

Six months ago, ActiViews obtained US Food and Drug Administration (FDA) approval for its first product, the CT-Guide navigation device. It is not known whether the current deal is for this product, or another product under development.

ActiViews' product is designed to improve current CT-based navigation to pulmonary tumors in order to take biopsies or ablation procedure of the tumor. The product is in two parts: a video camera inserted in the needle and a patch placed on the skin. Computer synchronization of the image from optical needle and the CT scanner can precisely position the needle without the need of a second CT image. The system provides great precision while reducing radiation, as well as ablation and removal of tumors using only the needle.

ActiViews may also develop the technology for liver biopsies and spinal orthopedic procedures.

ActiViews CEO Yuval Zuk and president and CTO Pinchas Gilboa founded the company in 2006. Zuk previously founded neurosurgical MRI guidance systems developer Odin Medical Technologies, which was acquired by Medtronic Inc. (NYSE: MDT) in 2006, and Gilboa earlier founded bronchoscopic guidance tool developer superDimension Ltd. Zuk has claimed in the past that ActiViews' product can treat a broader range of tumor's than superDimension's product, which he claimed could only diagnose and ablate 30% of pulmonary tumors.

superDimension has had $20 million in sale in the US; ActiViews has chalked up a few hundred thousand dollars in US sales ahead of the launch there, and it is conducting a marketing trial in Canada.