Surgical robotics startup Momentis cuts 60% of team after 1 year of $1 billion SPAC

Israeli surgical robotics company Momentis (formerly Memic) lays off 60% of its workforce. After the layoffs, he is left with only 50 employees at a company that until recently had 120 employees. About 40 of the remaining employees are based in Israel and the rest are headquartered in the United States.

Momentis, a developer of robotic-assisted surgical solutions, announced in August 2021 that it has agreed to merge with MedTech Acquisition Corporation, a publicly traded Special Purpose Acquisition Company (SPAC) focused on medical technology.

The combined company was set to have a pro forma equity value of over $1 billion. However, SPAC was eventually canceled last March due to market conditions, and a few months later the Israeli company was rebranded to his Momentis.

Momentis, which has raised $116 million to date, was founded by Dvir Cohen and Peregrine Ventures in 2012 and initially operated in a Peregrine-run Incentive Incubator. Momentis has an R&D center in Or Yehuda and an engineering center in Acre that manufactures robots. Memic has established a wholly owned subsidiary in Fort Lauderdale, Florida, responsible for global customer service, professional education, sales, marketing and clinical research.

The company’s first FDA approval was for use in single-site natural orifice laparoscopic-assisted transvaginal benign surgery, including benign hysterectomy.

“The company has followed plan to launch its gynecological product and has proven its clinical and economic value. This can be seen in the fact that major US hospitals are repeat customers of the company.” Cohen said. Thanks to feedback from the field in close collaboration with customers and leading physicians, the system continues to improve, and as a result, the performance specifications for the system, which is due to enter the market in 2025, have already been achieved. and opportunities are being created. Having successfully entered the major general surgery market about two years ahead of schedule, the company will focus on bringing to market a platform that serves a wide range of patient populations in both gynecology and general surgery. decided to For market entry, we are currently focused on regulatory efforts to obtain FDA approval for general surgical products within the next year.

“With the broad support of our board and all of our shareholders, we have made the necessary business decision to suspend production, marketing and sales activities next year as we need to focus on our regulatory efforts. So it is with great disappointment that we say goodbye to about 70 of our 120 employees as this slows the rate of burning cash and allows us to enter the market on optimal terms early in 2024. It’s been a difficult day for me and it’s hard for me to say goodbye to the wonderful and dedicated employees who have come a long way with me.”

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