Sheba Medical Center Sells ARC Global Innovation Arm to Redesign Health
Sheba Medical Center sold its ARC Global innovation arm to American firm Redesign Health for tens of millions of dollars, retaining a stake as Prof. Eyal Zimlichman assumes a leadership role.
Sheba Medical Center has announced the sale of its ARC Global innovation arm, which specializes in consulting and supporting the establishment of ARC-model innovation hubs in hospitals worldwide, to the American firm Redesign Health.
Sheba will receive an immediate cash sum of several tens of millions of dollars and will remain a shareholder in the joint company. Prof. Eyal Zimlichman, Chief Innovation Officer at Sheba, will be appointed Vice Chairman of Redesign Health. Dr. Stephen Klasko, former CEO of Jefferson Health, will serve as Chairman.
While full financial details were not disclosed, Sheba stated that the hospital will continue to benefit from the successes of the joint operation moving forward.
The Growth of ARC Global
The ARC innovation center was originally launched in 2019. Since then, dozens of companies have emerged from the center, some achieving successful exits. However, one of the primary products of the center became the innovation model itself. Initially, collaborations formed between Sheba and international hospitals seeking to learn its innovation model, eventually evolving into an international information-sharing network.
In 2023, it was decided to commercialize these capabilities, establishing the ARC arm to initiate similar innovation hubs in other hospitals globally, in partnership with international consulting firm Deloitte. This is the activity being sold today, while the Israeli innovation center and Sheba's equity in matured portfolio companies remain fully owned by the medical center. Deloitte will no longer be involved following the transaction.
Strategic Partnership and Global Reach
Redesign Health specializes in creating joint ventures alongside health systems to support medical initiatives. The firm is involved in dozens of funds and investment projects, having raised approximately $3.5 billion to date alongside affiliated entities. The company was founded and is led by Brett Shaheen, a former investor at Goldman Sachs, Carlyle, and Lone Pine Capital.
ARC CEO Avner Halperin noted that the initiative to seek an international partner to scale ARC's global operations originated from Sheba. "We received offers from various entities and ultimately chose Redesign Health due to their proven experience and track record in capital raising and hospital enterprise building," Halperin said.
Expanding Portfolio and Future Outlook
Operating locally in Israel, ARC currently supports more than 130 start-up companies. According to the innovation center, three unicorn companies have been established under its umbrella, with a cumulative portfolio valuation of approximately $6.7 billion, over $1.5 billion raised, and eight successful exits completed to date.
Brett Shaheen, CEO of Redesign Health, emphasized the strategic vision behind the acquisition: "A breakthrough in a single hospital can translate into progress for patients everywhere. We connect the knowledge embedded in the world's leading medical institutions with the technology, talent, and capital required to turn it into practical products."
