From a grant from the Bill Gates Foundation to millions in debt: the crisis of Art Medical

Art Medical, a medical device company that raised about $100 million and received a grant from the Gates Foundation, filed an urgent request with the court for the appointment of a temporary trustee after the FDA rejected its regulatory application. The company owes nearly $15 million and has not yet paid its employees their October salaries.

The Israeli medical device company Art Medical filed an urgent request today (Tuesday) with the Central District Court for the appointment of a temporary trustee and a stay of proceedings, after encountering financial difficulties and debts of nearly $15 million. The company, which has raised about $100 million since its inception and even received a grant from the Bill and Melinda Gates Foundation, developed a technological platform for monitoring and managing the feeding of ventilated patients in intensive care. The crisis was caused by the rejection of its application by the U.S. Food and Drug Administration (FDA) for regulatory classification under the De Novo pathway, which led to a halt in funding from investors. The company employs 53 workers in Netanya, has not yet paid October salaries (about 870,000 shekels), and owes about $10.6 million to Avanos Medical. The request emphasizes the urgency of ensuring continuity of care for patients using its products.