Sheba Medical Center Sells Innovation Arm ARC to Redesign Health

Sheba Medical Center is selling its innovation division, ARC, to the American company Redesign Health. The financial terms of the deal were not disclosed but are estimated to be in the tens of millions of dollars. Following the acquisition, ARC will continue to manage the innovation center at Sheba and other medical centers globally, while retaining stakes in its portfolio companies. The combined entity will assume management of the global network and rights to establish new hospital-based innovation centers. Sheba Medical Center will receive the proceeds from the sale, with approximately 10% allocated to the state according to existing intellectual property agreements. Redesign Health, founded in New York in 2018, focuses on creating and funding healthcare startups, employing a model similar to ARC's, including its work with Cedars-Sinai Medical Center. ARC was established at Sheba in 2019 and currently supports over 130 startups, including three companies valued at over $1 billion. Notable portfolio companies include Aidoc, an AI developer for medical imaging analysis. The total value of ARC's portfolio is estimated at around $6.7 billion, with its companies having raised over $1.5 billion. Eight companies have been sold, with Belkin Vision ($330 million) and Innovalve ($300 million) being the largest exits. ARC has expanded into an international network, connecting 31 healthcare systems and over 300 hospitals across 12 countries. As part of the merger, Professor Eyal Zimlichman, president of ARC Global, will become deputy chairman of Redesign Health. Stephen Klasko, former CEO of Jefferson Health, will be appointed chairman of the board of the merged company.