Medingo gets wink for insulin patch

Elron stock shot up 20% at the opening on Nasdaq yesterday, following news that subsidiary Medingo received informal approval for the insulin pump it has developed. The U.S. Food and Drug Administration's clearance notice arrived by e-mail. Medingo will be notifying investors when it gets the formal letter.

Elron and its subsidiary RDC - Rafael Development Corporation - own 92% of Medingo's stock.

Medingo, founded in 2005, developed a tiny insulin administration device for sufferers of Type 1 diabetes, the SoloMicroPump Insulin Delivery System. Physically, the device is a patch that can be placed on the arm, or somewhere more discreet, and left in place for three months. The patch has a tiny insulin pump and insulin container that has to be replaced every three days.

The startup's CEO, Ofer Yodfat, has said the device has a double advantage over competing products from companies such as Johnson & Johnson, Medtronic and Roche. Their systems are based on large pumps that can cost between $5,000 to $7,000. The Medingo system is tiny and will be cheaper.

The company's next product will sport a pump and a sensor that monitors glucose levels in the bloodstream, and administers insulin as needed. In effect, it functions as an artificial pancreas.