Surgical robotics startup Momentis cutting 60% of team one year after $1 billion SPAC fell through
Surgical robotics startup Momentis cutting 60% of team one year after $1 billion SPAC fell through
Momentis, formerly Memic, which develops robotic-assisted surgery solutions, is laying off 70 of 120 employees
Israeli surgical robotics company Momentis, formerly Memic, is laying off 60% of its employees. Following the layoffs, only 50 employees will remain at the company, which until recently had 120 employees. Around 40 of the remaining employees are based in Israel, with the rest headquartered in the U.S.
Momentis, which develops robotic-assisted surgery solutions, announced in August 2021 that it reached an agreement 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 an estimated pro-forma equity value of more than $1 billion. However, the SPAC was ultimately canceled in March of last year due to market conditions and a few months later the Israeli company rebranded as Momentis.
Momentis, which has raised $116 million to date, was founded in 2012 by Dvir Cohen and Peregrine Ventures, and initially operated in the Peregrine-run Incentive Incubator. Momentis has an R&D center in Or Yehuda and an engineering center in Acre where the robots are manufactured. Memic has set up a wholly-owned subsidiary in Fort Lauderdale, Florida which is in charge of global customer services, 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 surgical procedures including benign hysterectomies.
"The company made progress in launching its gynecological product in accordance with the plans and proved its clinical and economic value, which can be seen in the fact that leading hospitals in the U.S. are repeat customers of the company,” said Cohen. “The system has been getting better and better thanks to feedback from the field following close work with the customers and leading doctors. As a result, the performance specifications of the system, planned for reaching the market in 2025, have already been achieved, thus creating an opportunity for us to reach the main market of general surgery about two years before the planned time. Therefore, the company decided to focus on bringing to market a platform that serves a wide patient audience, both in gynecology and general surgery, and in order to promote market entry, we are currently focusing on regulatory efforts to obtain FDA approval for a product for general surgery in the coming year.
“Due to the need to focus on the regulatory efforts, we have made the necessary business decision, with the broad support of the board of directors and all shareholders, to suspend production, marketing and sales efforts in the coming year. Therefore with great regret we say goodbye to approximately 70 out of the company's 120 employees, with the aim of slowing down the cash burn rate and to reach the market under optimal conditions at the beginning of 2024. This is a difficult day for me and it pains me to say goodbye to wonderful and dedicated employees who have come a long, long way with me."
