Art Medical asked an Israeli court for protection from creditors on November 10 after an FDA rejection prompted investors to stop funding the intensive-care device maker, according to Calcalist’s account of its filing. The company has nearly $15 million in debt.
The company wants a temporary trustee to maintain operations while exploring a sale of the business as a going concern. Its filing cites October’s rejection of a De Novo application to market its products in the United States. Art Medical employs 53 people and had not paid their October salaries, Calcalist reported.
Art Medical’s smART+ platform helps intensive-care teams manage nutrition delivered through feeding tubes. The company says sensors detect reflux and assist tube positioning, while the system tracks feeding interruptions and adjusts delivery to make up the shortfall.
A commercial partner also holds security over its technology. Art Medical announced a partnership with Avanos Medical in 2024 to launch smART+ in the United Kingdom. According to the filing, Avanos is owed about $10.6 million, including interest, on a $9 million convertible loan secured by all of Art Medical’s intellectual property.
The filing also calls for immediate steps to notify hospitals and distributors, prevent new patients from being connected to the system and arrange continued care or alternatives for patients already using it.