Israeli Weight-Loss Pill Developer Appoints New CEO to Revive Struggling Company
Epitomi, an Israeli company developing a weight-loss pill, has appointed Dr. Dolev Rafaily as its new CEO amid a dramatic 90% drop in its stock price since its Tel Aviv IPO. Rafaily, who previously led medical aesthetics company Photomedex and managed Strata Skin, which lost 99% of its value, replaces Dan Hashmashoni, who headed Epitomi since 2018. The company is now entering the U.S. market and seeks a CEO experienced in marketing products at the intersection of health and aesthetics. Rafaily’s annual compensation package totals $1.1 million, including salary, bonus, and options for 5% ownership.
Epitomi’s founder and chairman, Dr. Shimon Akhoyz, highlighted the significant market opportunity in the U.S. and praised Rafaily’s energy and experience. The company’s weight-loss pill, prescribed by doctors, aims to compete with GLP-1 injectable drugs like Wegovy and Mounjaro, which cause substantial weight loss but have side effects and high costs. Epitomi’s pill offers a moderate average weight loss of 6.6%, targeting patients seeking smaller reductions or unable to tolerate injections. The product will be distributed mainly through telemedicine platforms, where consumer demand influences prescriptions.
Despite limited revenues of $213,000 last year and a $8.6 million loss in 2025, Epitomi has burned about $70 million to date. Its valuation plummeted from approximately 800 million shekels at IPO to 105 million shekels, partly due to Nestlé canceling a distribution deal after clinical trial results failed to meet expectations. Akhoyz remains optimistic about overcoming the costly and slow market penetration challenges, citing his success with other medical device companies.
In contrast, Akhoyz’s other publicly traded company, Supwave, has shown strong growth and profitability, with a market value of about 1.4 billion shekels. Supwave develops non-invasive energy-based aesthetic devices and recently launched a muscle-strengthening product addressing issues caused by weight-loss drugs. Akhoyz emphasized the expanding market for medical aesthetics and longevity treatments.
Rafaily expressed confidence in Epitomi’s product and market potential, estimating that enrolling 25,000 patients for three months could generate $50 million in sales. He noted the need to manage sales directly rather than relying on distributors due to the product’s novel nature. Rafaily also recounted his previous turnaround experiences with Photomedex and Strata Skin, underscoring his commitment to creating value despite challenges. Epitomi’s future success hinges on effectively marketing the pill and capitalizing on the growing demand for oral obesity treatments.
