Sheba Medical Center sells its global innovation arm for tens of millions of dollars

Sheba Medical Center is selling its global innovation arm, ARC Global, to the American company Redesign Health for tens of millions of dollars. Sheba will remain involved in the operations, and Prof. Eyal Zimlichman will be appointed vice chairman of the acquiring company.

Sheba Medical Center announced the sale of its global innovation arm, ARC Global, to the American company Redesign Health for tens of millions of dollars. Sheba will receive an immediate sum of several tens of millions of dollars and will remain involved in ARC Global's operations. As part of the deal, Prof. Eyal Zimlichman, Sheba's innovation director, will be appointed vice chairman of Redesign Health. Dr. Steven Klasko, former CEO of the Jefferson Health hospital network, will be appointed chairman. Full details of the agreement were not disclosed, but Sheba stated that the hospital will also benefit from the successes of the joint venture in the future. The ARC innovation center was launched in 2019 and has since established dozens of companies, some of which have achieved exits. In 2023, it was decided to commercialize the capabilities and a branch was established to initiate similar innovation centers in other hospitals, for financial compensation and in partnership with Deloitte. This activity is now being sold, while the Israeli innovation center and holdings in companies that matured from it remain under Sheba's ownership. The CEO of ARC Sheba, Avner Halperin, explained that the search for an international partner was intended to expand global operations, and that Redesign Health was chosen due to its experience in raising capital and assisting hospitals in establishing companies. Redesign Health specializes in establishing funds alongside hospitals to support medical ventures and has raised approximately $3.5 billion to date.