The Israel-based company has signed a non-binding term sheet to acquire a liquid biopsy diagnostics platform and secure a concurrent $15 million strategic equity investment.
Inspira Technologies OXY BHN Ltd has entered into a non-binding term sheet for a two-part transaction that includes acquiring a liquid biopsy diagnostics business and securing a concurrent $15 million strategic equity investment.
The proposed transaction would enable the Ra’anana, Israel-based company to enter the liquid biopsy market through a proprietary platform designed to isolate and characterize circulating tumor cells from standard blood samples. The platform incorporates AI-powered cellular analysis to support cancer characterization and treatment decision-making.
“We are positioning the company to expand into a high-growth diagnostics market through the planned acquisition of a development-ready liquid biopsy platform, supported by a clear regulatory pathway, alongside a significant strategic equity investment of $15 million into the company that reflects a valuation framework driven by the technology’s potential combined with our execution capabilities,” says Dagi Ben-Noon, chief executive officer of Inspira, in a release.
The company expects to finalize and execute definitive agreements within approximately four weeks, following which the transaction will be subject to shareholder approval and customary closing conditions.
$180 Million Valuation Framework
The proposed transaction includes a $15 million equity investment by a strategic investor, based on a pre-money valuation of $180 million. The company says this valuation represents a significant premium over its current market capitalization and reflects the strategic investor’s assessment of the liquid biopsy technology’s commercial potential combined with Inspira’s existing capabilities.
The strategic investor’s identity will be disclosed following shareholder approval and execution of definitive agreements. Inspira intends to allocate $12 million of the investment proceeds to fund continued operations and development of its existing respiratory and blood monitoring technologies.
Breast Cancer Focus with Regulatory Pathway
The platform’s initial clinical focus is breast cancer, with potential applicability across additional oncology indications. In clinical validation studies conducted across dozens of patient samples, the platform has demonstrated high concordance with traditional tissue biopsy, according to a release from Inspira.
The technology addresses whole-cell characterization, which provides diagnostic information beyond DNA or RNA-based sequencing approaches. Following the acquisition, Inspira expects to pursue US Food and Drug Administration (FDA) clearance for the liquid biopsy platform through the 510(k) regulatory pathway, leveraging established regulatory precedents.
An existing reimbursement code is already in place for the intended clinical use, providing a path to reimbursement upon regulatory clearance. The global liquid biopsy market is projected to reach approximately $58 billion over the coming decade, driven by increasing demand for non-invasive cancer detection and treatment monitoring.
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