PETALUMA -- Tegal Corporation (Nasdaq: TGAL) today announced it made a $300,000 strategic investment in NanoVibronix Inc., which develops medical devices and products that use its proprietary therapeutic ultrasound technology.
This is part of a shift at 39-year-old Tegal, started in earnest in February, away from its history of making semiconductor-production equipment. The first move was into photo-voltaic energy systems.
"Our investment in NanoVibronix expands the Tegal portfolio to new markets and new commercial horizons," said Thomas Mika, president and chief executive. "NanoVibronix is a technology leader in the application of surface acoustic waves in the treatment of wounds and the prevention of infection in indwelling catheters."
Israel-based NanoVibronix has patented a surface acoustic wave technology that transmits low-intensity, low-frequency waves through skin and tissue and other soft materials to treat chronic wounds that won't heal.
The global wound care market is estimated to reach $22.8 billion by 2017, according to a recent Global Industry Analysts report Tegal cited. Of that market, about one-third focuses on advanced wound care products. The growth of the market is being fueled by an aging population and rapid rise in diabetes cases.
NanoVibronix's first product is PainShield MD, marketed for the treatment of tendonitis, muscle pain and trigeminal neuralgia. It has gained FDA clearance for the U.S. and CE Mark certification in Europe.
The company also has developed a family of disposable ultrasound devices to treat catheter-associated infection and injury, accomplished by preventing biofilm formation and decreasing the friction between the catheter and body tissues. The UroShield(TM)product is currently CE mark certified, and is the subject of several independent clinical trials being conducted by leading researchers in Europe and the Middle East.
"Tegal's investment and management expertise are critical to accelerating the growth of NanoVibronix," said Dr. Jacob. "We are extremely pleased to partner with Tegal as we take the next step in our corporate growth plan."
NanoVibronix also has developed a line of catheter based disposable ultrasound devices designed to treat catheter associated injury including pain, discomfort and biofilm formation. The first two products in this category are the UroShield for in-dwelling urinary catheters and NG-Shield for in-dwelling nasogastric tubes.
Tegal's stock price was $2.23 a share at the close of trading Tuesday, up 16 cents a share or 7.73 percent from Monday's closing price.