Israel’s TheraCoat Said to Seek More Than $20 Million Before IPO

TheraCoat, a developer of treatments for urinary tract diseases, is seeking to raise more than $20 million in coming months as it prepares for an initial public offering in New York, people with knowledge of the matter said.

The Israeli company, which says its gel technology allows cancer drugs to stick better to the bladder wall, may be listed on the Nasdaq Stock Market as early as this year, one of the people said, declining to be named as the matter is confidential. The company will seek a valuation of about $200 million in the IPO, the people said.

A spokeswoman for the company, which is based in Ra’anana in Israel, declined to comment.

TheraCoat executives will choose investment banks to underwrite the IPO in the coming months, one of the people said.

The company is seeking to join a rising number of Israeli healthcare companies that are attraction attention from U.S. investors who want to bet on new drugs and treatments. Last year, 17 pharmaceutical and biotech companies from the nation raised a record $720 million in the U.S., according to data compiled by Bloomberg. So far this year, eight firms have collected $225 million, the data show.

TheraCoat board members include former Teva Pharmaceuticals Industries Ltd. executive Chaim Hurvitz, Kite Pharma Inc.’s Arie Belldegrun, and Pontifax Group’s Ran Nussbaum. The company is currently conducting clinical trials for four different bladder disease indications.