Grandson of Levi Eshkol takes over Epitomee Medical after previous company collapse
Epitomee Medical, having lost 61% of its value over the past year, has appointed Dolev Rafaeli as CEO amidst a crisis. Rafaeli previously led a public company that collapsed, raising questions among investors about whether this is a strategic turnaround or a prelude to a sale.
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Epitomee Medical, developer of the ingestible weight loss capsule, is navigating one of the most difficult periods in its history. The stock has lost approximately 61% of its value over the last year, its major partner Nestle has long since exited, and its German distributor recently slashed annual orders to just $0.5 million—less than a tenth of original projections.
At this critical juncture, the board of directors has replaced long-time CEO Dr. Dan Hashmonay with Dolev Rafaeli, a figure with a highly controversial track record.
Rafaeli, grandson of Israel’s third Prime Minister Levi Eshkol, is an experienced international manager. He built Orbotech’s operations in China from scratch and previously served as CEO of PhotoMedex, the company behind the no!no! home hair removal device.
However, Rafaeli’s tenure at PhotoMedex was marked by significant turbulence. While sales surged from $19 million to over $300 million, the flagship no!no! product faced class-action lawsuits alleging that marketing claims lacked scientific backing. A controlled study found the device no more effective than a standard razor. In 2013, a class-action lawsuit was filed against PhotoMedex and Rafaeli personally for misleading investors, resulting in a 2015 settlement. The company subsequently collapsed, and the no!no! brand was sold for just $9.5 million—a fraction of its peak value.
The terms of Rafaeli’s appointment at Epitomee are equally notable. His compensation package includes a $500,000 base salary (rising to $540,000 upon reaching $5 million in North American revenue), an annual bonus of up to 75% of his salary, and a grant of options representing 5% of the company’s fully diluted capital.
An intriguing clause regarding the accelerated vesting of options in the event of a merger or acquisition (M&A) has fueled speculation that the company may be positioning itself for a sale.
For investors, this is a defining moment. Epitomee is betting on an aggressive sales manager to drive commercial growth. Conversely, the recurring pattern of appointing a manager from a previously failed public company is a source of concern. As of the end of 2025, Epitomee held approximately $14 million in cash, with annual burn rates of $7.7 million.
Epitomee stated: "Dr. Rafaeli’s appointment marks a new phase focused on Direct-to-Consumer (DTC) penetration and leveraging telehealth platforms to maximize the commercial potential of our technology."
Chairman Dr. Shimon Eckhouse added: "We chose Dr. Rafaeli for his unique experience in introducing breakthrough medical products to the US market. His expertise in media-intensive consumer marketing makes him the ideal leader for our next commercial phase."
Dolev Rafaeli commented: "I am determined to lead the company and believe our direct sales model will make our effective solution accessible to millions of patients, ultimately generating value for shareholders."
