Court Appoints Receiver for Contipi Medical Amid Financial Distress

The Haifa District Court has appointed attorney Mor Nardia as a temporary receiver for Contipi Medical, a life sciences company specializing in non-invasive solutions for female pelvic floor disorders. The appointment, agreed upon by the company and its secured lenders, aims to facilitate the sale of the company and its assets as a going concern on the international market.

Founded in 2014 by Dr. Ilan Ziv, who serves as chairman and CEO, Contipi Medical developed the ProVate device for treating pelvic organ prolapse. The product has received FDA and CE regulatory approvals, and the company holds approximately 40 patents worldwide. Since its inception, Contipi Medical has raised about $55 million.

The company's financial difficulties stem from the unilateral cancellation in 2024 of a strategic marketing and credit agreement by the American company Indegene. According to court filings, this cancellation created a budget shortfall of approximately $26 million and made it difficult for Contipi to meet the financial covenants of a $40 million secured loan from a group of lenders.

Contipi Medical's total debts currently amount to approximately NIS 181 million. This includes about $58 million owed to secured lenders, NIS 6.6 million to suppliers, and NIS 1.1 million in employee wages. During a court hearing, the secured lenders expressed willingness to fund a "lean operation" to preserve the company's assets, including inventory worth $1.25 million stored in the US and Mexico, and to maintain the validity of the company's European patent.

The court has granted the temporary receiver 30 days to advance the sale process or secure an international investor, while maintaining existing orders freezing proceedings and prohibiting the disposal of assets.