Israeli Startup EndoStream Acquired by Kaneka in Strategic Medtech Expansion

Japanese conglomerate Kaneka Corporation has acquired a 96.8% stake in EndoStream Medical, an Israeli medical device startup based in Or Akiva, in a deal valued at approximately $100 million. The agreement, which includes provisions for additional payments based on future sales milestones, is Kaneka’s strategic entry into the Israeli medtech sector. It is also the first major acquisition by a Japanese firm in Israel since the October 2023 conflict.

Following the acquisition, EndoStream Medical will continue its operations in Israel and serve as Kaneka’s research and development hub. The startup, known for its Nautilus™ device for treating brain aneurysms, will collaborate with Kaneka to develop advanced medical devices for cerebrovascular diseases such as strokes and aneurysms. Kaneka also plans to expand the team beyond EndoStream’s existing 12 employees and aims to achieve sales exceeding 20 billion yen by 2030.

Founded in 2015 by CEO Danel Mayer and CTO Alon May, EndoStream Medical specializes in developing advanced solutions for treating cerebral aneurysms. The company’s flagship product, the Nautilus™ implant, is designed to address aneurysms with wide openings in cerebral blood vessels. 

Made from nitinol wire with a platinum-based alloy coil sleeve, the device blocks and redirects blood flow, providing a safer and more effective treatment alternative that eliminates the need for blood thinners and anticoagulants.

The Nautilus™ device has been successfully implanted in hundreds of patients worldwide, offering a groundbreaking approach to managing a condition that affects an estimated 1 in 50 people. 

Regulatory approval for the device was secured in Europe in November 2024. It is planned to launch in the United States by spring 2026 and in Japan the following year. The company has raised approximately $5 million in funding from Peregrine Ventures and a group of prominent American neurosurgeons.

Kaneka Corporation, established in 1948, operates in diverse sectors, including medical devices, pharmaceuticals, and specialty chemicals. Headquartered in Osaka and Tokyo, the company employs around 11,500 people globally. Known for its expertise in developing treatments for cardiac, vascular, and cerebrovascular diseases, Kaneka plans to leverage EndoStream’s technology to jointly develop advanced medical solutions, aiming for sales exceeding 20 billion yen ($126 million) by 2030.

Kaneka’s Health Care Solutions Unit, which includes its medical device businesses, aims to achieve sales of 300 billion yen by 2030. The company has been steadily expanding its product portfolio in the cerebrovascular field, offering devices like the i-ED COIL™ embolization coil for aneurysm treatment. 

The merger between Kaneka and EndoStream Medical will combine Kaneka’s advanced manufacturing expertise with EndoStream’s innovative implant technology. Together, they plan to enhance the development of EndoStream’s Nautilus™ device and collaborate on new medical solutions for cerebrovascular diseases.