Israeli start-up Foamix Ltd., which is developing a unique foam for drug delivery, is aiming high. Six months after raising $2 million from private investors, it is preparing a new $5 million financing round, and is planning an IPO on Nasdaq in 18 months.

Foamix co-founder and COO Meir Eini said the company planned to raise the money from US venture capital funds, which would help it reach Nasdaq quickly and easily. "We believe that the current financing round will be our last before we float the company on the stock market. We're already in the middle of examining the subject, and we're in contact with underwriters. We don’t need the proceeds from the round for daily needs of the company, but to improve its position before the issue."

"Globes": What is Foamix's business model?

Foamix CEO Dr.Dov Tamarkin: "We produce and supply foam for pharmaceutical companies whose products have already been approved by the US Food and Drug Administration (FDA). Although we're certainly capable of bringing a product from the early stages to FDA approval, we prefer cooperating with other companies. We don’t develop the drug itself, but supply the agent that delivers the drug and improves its treatment ability."

Do you already have such agreements?

"So far, we've signed cooperation agreements, but, regrettably, I cannot disclose details, since we've signed strict confidentiality clauses. However, I can say that these are agreements with large companies, such as Merck & Co. and Pfizer. We’ve signed four agreements to date, and each product wee jointly develop will have a sales potential of between $40 million and $400 million. Our revenue will come from royalties on sales of jointly developed products."