ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the October 2001 issue


The Money Stays at Home


Medax 2001 was the 14th Israel Medical Week, when scores of medical equipment suppliers exhibited their wares to visitors. Concurrently, a tremendous variety of papers on medical subjects and research studies were presented. This year's Medax was held the first week of September at the sprawling Fair Grounds adjacent to Tel-Aviv University. Unexpectedly well attended, Medax 2001 provided the window on leading medical technology. One of the exhibitors was Medtechnica, a major importer and distributor of medical equipment for the Israeli healthcare market. Medtechnica among others, represents Newport Medical Instruments, Inc. That company, established in 1981, became America's largest privately owned medical ventilator company and is ranked fourth in worldwide market share. The company's line of ventilators serves to improve patient comfort, speed patient recovery and provide respiratory support for extended care. Thsese are designed for use with neonate, pediatric and adult patients. Applications range from the emergency room, to intensive care, to patient transport, as well as home care. Newport recently introduced its newest product, the HT 50, exhibited by Medtechnica, the Israeli distributor for Newport Medical Instruments.

Elie Malka, Medtechnica's Respiratory and Sleep Equipment specialist, revealed to IHTIR that the HT50 is a "blue and white" product, the local terminology for Made in Israel. "We are bound by the agreement between Flight Medical Ltd., the Israeli company that developed and produces HT50, and Newport Medical Instruments, its sole global distributor. Newport therefore, is our supplier of the ventilator, but the "money stays at home," says Malka. "An important user feature of our ventilator is that it can operate up to 10 hours on a battery without recharging. The battery life of most other ventilators is usually limited to 1 1/2 hours," says Yosi Aldar, marketing manager and a founder of Flight Medical. One of the target markets was the Air Force, which is alluded to in the company's name. Aldar, a biomedical engineer by profession, relates that the development of the unique ventilator took three years before it became a saleable product in 1999. Intensive collaborative effort with Israel Defense Forces preceded the army's approval of the ventilator.

Flight Medical is positioning itself to become a major factor in the $400 million American ventilator industry. Six of the company's 30 employees are active in research and development which has led to 20 patents. "Our R&D and pipeline of new products will help us to realize a projected 50%-100% annual growth rate over the next three years," predicts Aldar.


Reprinted from the Israel High-Tech & Investment Report October 2001

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