ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the October 2002 issue


CByond's -- CMOS Imaging Technology: Miniaturized Cameras with "See through Blood Capability" and "3Dimensional Stereoscopic Display"


CByond Inc., and its fully owned research and development facility in Nesher, Israel is emerging from its development stage. It has firmly positioned itself to enter the lucrative American market as a result of its July agreement with an unnamed American company, that is a major factor in the endoscope industry. The American firm has expressed its faith in CByond's technology and management by acquiring a minority investment. More importantly, it has contracted to purchase an estimated $20 million of CByond's unique miniaturized image enhancing video cameras. These are miniature, re-useable as well as disposable, video cameras that are attached to the tip of a flexible (or rigid) endoscope or catheter (distal-end camera). The technology is a combination of innovative optical solutions, electronic components and proprietary algorithms. An endoscope is an instrument that visually examines the interior of a bodily canal or hollow organ such as the colon, bladder stomach or lung.

A camera on the endoscope sends the image to a processing unit. The unit then relays the picture to a recorder, which projects the image onto a screen or monitor to guide the physician. CByond's miniaturized video cameras lend themselves not only to diagnostic applications but for endoscopic surgical procedures in what is generally described as Minimally Invasive Surgery (MIS). Medical practitioners express enthusiasism about the quality of the pictures produced by CByond's camera's.

Prof. Hylton Miller, director of the catheterization department at Tel-Aviv's Sourasky Medical Center says " that the quality of the picture is better" than what he obtains today using the most advanced catheters, when performing angioscopy procedures. What appeals to Prof Miller is not only the clarity of the digital picture and its quantitative ability to assess perspective, but also the economics of the company's technology.

Presently interventional cardiologists, except for a handful of centers, do not have the use of expensive angioscopes to view the inside of coronary arteries in their patients. A London based Professor of interventional cardiology and director of cardiac research & development has also expressed interest in applying the company's technology to obtain information about the dimensions of heart vessels. This information could be used facilitate the placement of cardiac stents into position.

"We will shortly be supplying cameras that will be integrated into endoscopes used in urological applications. These are in the order of 5mm in diameter and will be integrated into endoscopes in the order of 5 mm. These could be used, as well, for gynecological and bronchoscopical applications. Our next generation endoscopes will meet the 2.5mm and 1.5mm. size and will offer the sizes needed by interventional cardiologists. These will have advantage of "seeing" tiny details and structures that were not visible before and will help in diagnosing individuals who may be harboring "vulnerable plaque, the substance that forms in heart arteries and poses risks of heart attacks," explains Ofer Pillar, CByond's CEO.

Pillar , and Dr. Doron Adler, CTO --both experts in medical image processing and medical technology --founded CByond in 1999. Together they have a combined 34 years of experience in the engineering, development and management of sophisticated medical devices and companies. "CByond's cameras use proprietary Complementary Metal Oxide Semiconductor (CMOS) sensors, together with optical image deformation for capturing images. These deformed images are reconstructed onto a monitor, using proprietary algorithms and electronic processing. These revolutionary "visual probes" are unique by virtue of their miniature size (1.5mm -5mm diameter), and their ability to measure distance and geometry. Their true three-dimensional stereoscopic imaging and proprietary electro-optical design allow doctors to see through blood, urine, liquids and gases. In addition, the cameras have superior image quality and the ability to interface with other miniature medical robots and automated surgical devices," explains Dr. Adler.

Ofer Pillar points out that CByond's cameras incorporate low-cost CMOS sensors and light sources that reduce the cameras' manufacturing cost while maintaining the ability to produce picture resolution that is superior to competing technologies. The low cost of the cameras enable it to be disposable, thus eliminating the costs of cleaning and sterilization processes. The miniaturization achieved with the CMOS camera allows the capture of high-quality intra-vascular video pictures with minimal invasiveness to the cardiovascular system. With a camera diameter of only 1.5mm,the probes will be small enough to fit inside narrow areas, and offer a picture resolution that is many times better than the currently popularly employed fiber-optic cameras.

With a strong intellectual property shield, Ofer Pillar is currently in intensive contact with leading members of the medical community in order to fine tune the CByond technology to the needs of the users. This is setting the stage for entry into new applications where endoscopic procedures are in use.

Dr. Ephraim Eviatar, an ear nose and throat surgeon and deputy director of the ear nose and throat department of the Asaf Harofe Hospital is cooperating on sinus operation applications. " During sinus surgery I am faced with blind spots when my instruments enter areas where there is blood. The "seeing through blood" capability of CByond's endoscope as well as the three dimensional view of video images are major steps up for ENT surgery," explains Dr. Eviatar.

Dr. Philip Kaplan, who practices general and surgical dentistry is highly enthused about the "clarity of CByond's pictures". He has consulted in the past to a dental startup and is cooperating with Ofer Pillar on a novel application. The National Institute for Child Health and Human Development works with Rhesus Macaque Monkeys as models for human developmental phenomena. Currently, they are in the process of developing a fetal model in non-human primates and are interested in observing the fetus in utero. The NIH has turned to CByond and expressed interest in its camera to observe fetal behavior. "Given that we currently use a catheterization system and are aiming to facilitate minimally invasive fetal surgical procedures, CByond's technology may be suitable for incorporation into our procedures", states an NIH researcher.

CByond has identified several segments of the overall global endoscopic market estiumated ay about $5 billion with an average annual growth rate of 13.5%.

With present endoscopic visualization equipment (cameras, light sources,and recorders) set to surpassing $650 million in 2001, it is expected to grow annually by 6%-7%.While this figure represents the replacement of the installed base, it does not bring into account the "disposable" endoscopic applications that CByond is intent on developing.

Initially funded by its founders, the company raised $1.2 million in seed capital. As it is rapidly transitions from its research and development stage to "about to ship "its first product, it has embarked on a financing round which will bring in $2.0 million.


Reprinted from the Israel High-Tech & Investment Report October 2002

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