Lipa Meir & Co. advises Israeli animal health company, Mileutis Ltd. on a key investment
Lipa Meir & Co. has advised Israeli animal health company, Mileutis Ltd. on raising a USD 20 million investment from U.S. life sciences and healthcare investor, NovaQuest Capital Management LLC.
A part of the product financing agreement, the funds will be used to further develop a product to address bovine mastitis, one of the main concerns in the dairy industry, and spread the use of this product, which is to be launched in Israel, Europe, and the U.S.
Representing Mileutis on this significant breakthrough was Adv. Gary Copelovitz. We caught up with Gary.
“We have been advising Mileutis for some 4-5 years now. We do all their corporate and commercial work and also manage their litigation. The Company has been raising funds throughout this period, principally however, from friends and family and various angels.
This was NovaQuest’s first ever investment in the animal health care field and in an Israeli company. There are challenges to overcome in these situations. In addition to the typical cultural challenge, I would point out the different regulatory environment. I find that new investors have difficulty in grasping the idiosyncrasies of the Israeli regulators.
The way to deal with this is twofold: first, building a sufficient level of trust with the investor, to enable a representation that: ‘this is how business is done in Israel’; second, and perhaps more significantly, this would hinge on the level and ingenuity of Israeli counsel appointed by the investor.”
In this challenging climate, is getting the financing difficult and what helps you and Lipa Meir get the deal across the finishing line?
“My analysis is that getting finance is not more difficult than before; however, the principal difference is the issue of valuation. Simply put, valuations have been slashed. As to getting the deal across the finishing line: naturally, this is a combination of factors – business acumen, bridging over different cultures; the ability to break down lingering objections and concerns and being thoroughly acquainted with the relevant regulatory authorities and rules (the IIA, Ministry of Health etc.).
I will point out, in these difficult times, two additional necessary traits: patience – in abundance; and, given the uncertainties underlying the pandemic and its repercussions, clients tend to rely heavily on receipt of assistance from their legal counsel in making decisions based on risk management.”
