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Medica plans new fund

Medica Venture Partners will likely begin marketing a $200 million fund during the second or third quarter this year to make venture capital and special situation investments in health care companies, according to Yoav Waizer, Medica’s chief financial officer.

The Herzlia, Israeli-based firm expects Medica IV will back between 20 to 25 companies, two to four of which will be U.S.-based.

Previous limited partners in Medica Venture Partners include two New York City pension funds and the Soros Funds, all of which are expected to re-up in Medica IV, says Waizer, who declined to disclose specifics. Other past backers of Medica funds include Bank Hapoalim, Boston Scientific, Baxter Corp. and the William Blair Investment Bank.

Medica Venture Partners previously raised $115 million for its third fund, which closed in 2005. The firm has had two exits so far from fund III, including Remon Medical Technologies, which was purchased by Boston Scientific Corp. in June 2007 for an undisclosed price. Remon had previously raised more than $44 million in funding from Medica, Polaris Venture Partners and other investors, according to Thomson Reuters (publisher of VCJ).

Founded in 1995, Medica Venture Partners focuses on pharmaceuticals, biotechnology, medical technology and other life science technologies, making initial investments of between $500,000 to $3 million.

The Israeli firm has an office in Boston and is in the process of establishing a European base of operations.

Medica Venture Partners is using a few placement agents, each targeting a particular type of potential LP, such as state pension funds or family offices. The firm is in the process of selecting a legal counsel. —Nancy Gordon