HIL Applied Medical

HIL Applied Medical is developing a breakthrough therapy system for fighting cancer.

Its system is based on a treatment approach known as Proton Therapy, an advanced form of radiation therapy. Though more precise at attacking cancer inside the body, proton therapy isn’t used often. That’s because proton therapy systems are massive — often the size of a football field — and can cost as much as $250 million to build and operate.

HIL is building a compact, high-performance proton therapy system. This system is half the size of existing units and costs nearly 75% less to operate.

This company has strategic partnerships with the European Organization for Nuclear Research, and Thales, a company designing electrical and laser-guided systems for markets including aerospace, defense, and transportation. It's also secured a co-commercialization agreement with IBA Worldwide, a company creating medical devices and software for cancer treatments using Proton Therapy.

Most recently, HIL was awarded the Horizon 2020 Seal of Excellence and received $2.5 million in grant funding. It’s seeking additional capital to complete construction on a new R&D and manufacturing site, and achieve its first sales.

(Please note: This particular startup is raising funds from accredited investors only. An accredited investor is someone with a net worth of at least $1 million, or annual income of at least $200,000, or $300,000 with their spouse.)

In 2018, 17 million people in the U.S. were diagnosed with cancer. One of every three Americans will be diagnosed with some form of this disease.

One of the most widely-used treatments for cancer is radiation therapy. This involves using doses of radiation to attack and destroy cancer cells in the body. In the U.S., nearly two-thirds of cancer patients receive radiation treatment.

Proton Therapy, or “PT,” for short, is a more precise form of radiation cancer treatment. It can target tumors with more accuracy, reducing damage to healthy tissue and enabling more effective doses of treatment. When effective, PT systems can reduce the emergence of secondary cancers by as much as 90%.

The problem is that traditional PT systems require multiple treatment rooms to operate. These systems can weigh as much as 500 tons, and can cost more than $200 million. Costs just to build a stand-alone PT system can reach $10 million.

These high costs mean hospitals hesitate on investing in PT systems. Often, hospitals are only able to profit from them after 15 years of use.

As a result, globally, less than 1% of radiation therapy patients are treated with PT, while the treatment could potentially benefit 33% of those diagnosed with cancer.

HIL offers a solution to these problems. Its PT system is 100 times lighter than existing systems and takes up half the space.

The key to HIL’s system is a technique known as Chirped Pulse Amplification, or “CPA,” which significantly intensifies laser pulses. This technique was introduced by two scientists in the mid 1980s, both of whom were awarded the Nobel Prize in Physics.

By combining this technique with nanotechnology and advanced magnetics, HIL’s PT system is able to precisely attack cancer cells. The company was able to capture this core technology in a system that's more compact and affordable than others on the market.

HIL has more than 45 approved and pending patents, including ones granted in the U.S., Japan, and China.

The company plans to sell its systems to hospitals using the following business model:

First, it will earn a one-time equipment sale for the cost of the equipment. HIL expects the sale price to start at $8 million, and achieve roughly 50% gross margins.

Second, it will charge a recurring maintenance fee with a 10-year agreement. This will cover all service and maintenance of the system. HIL expects to charge $800,000 annually per system, and achieve roughly 80% gross margins for this service.

At this price point, HIL estimates that hospitals will begin to profit from its systems within 3 to 4 years.

HIL projects to sell its first system as soon as 2021. Once sales begin, the company aims to break even after selling 10 systems.

Team Background

Arie Zigler - Co-Founder & CTO

Arie has more than 35 years of experience in experimental physics, specifically in the areas of high-powered lasers, laser accelerators, and plasma physics.

He is the former Chairman of the Physics Department at the Hebrew University.

Sagi Brink-Danan - Co-Founder & CEO

Sagi is an expert in building medical devices. He also has more than 15 years of entrepreneurial experience.

Prior to starting HIL, he founded Perfuzia Medical, a medical device company focused on chronic wound healing. Before that, he was a vice president at SRS Medical, another medical device company.

For five years, Sagi was a manager at Mazor Robotics, a medical device company using robotic systems to complete spinal surgeries. This company was acquired by Medtronic (NYSE: MDT).

He earned a Bachelor’s degree in Electrical Engineering and a Master’s degree in Bio-Medical Engineering from Tel Aviv University. He also earned an MBA from Babson College.

Raphael Van-Reoermund - R&D Team Leader

Raphael has a background in physics, specializing in the development and implantation of Proton Therapy systems.

Before joining the team at HIL, he worked for IBA Worldwide, a company manufacturing medical devices and software solutions for cancer treatments.

Arik Hybloom - Director of Finance and Operations

Arik began his career with Deloitte, a professional services company. He spent four years as an accountant with the company’s Israel Division.

From there, he became Chief Financial Officer for the Bank of Jerusalem, focusing on capital markets and mutual fund management.

He was Vice President of Operations and Compliance for State Bank of India (NYSE: SBIN) for six years.

Arik earned a degree in Business from The College of Management Academic Studies.

Co-Investors