French artificial heart manufacturer Carmat is on the brink of bankruptcy after the only bid to take over the fallen medical technology pioneer failed to materialize on September 29, ahead of a court hearing that will determine its survival.
The only takeover bid was submitted at the end of July by the Hougou company, " family office » by Pierre Bastid, chairman of the company's board of directors and a shareholder of approximately 17% of Carmat, which is currently undergoing receivership. It was to be examined during a hearing scheduled for September 30 before the economic affairs court in Versailles, west of Paris.
“ To date, however, the buyer has not been able to confirm its offer, due to the lack of securing the financing necessary for the takeover.", making " extremely likely "a compulsory liquidation" in the very near future", Carmat stressed in a press releaseTuesday's hearing was held in order to set a new date for the liquidation to be pronounced within 15 days, according to the receiver. With the liquidation, activities will cease and the shares of Carmat, created in 2008 and listed on the stock market in 2010, will be delisted.
Read alsoArtificial heart: Carmat files for bankruptcy after 122 implantations
"Big disappointment"
At a first hearing on August 19, the court granted Mr. Bastid an additional period to finalize his offer. It's a huge disappointment. I haven't found the funding to continue the adventure. "marked by 30 years of research and 550 million euros of investment," Mr. Bastid told AFP, estimating " It is extremely disappointing that in France we are not able to finance projects of this nature.“.
Since its first implantation in a patient in 2014, the technology of the prosthesis, intended for patients suffering from terminal heart failure while waiting for a human heart available for transplantation, has progressed considerably. But Carmat did not have time to complete its dream: to develop a " definitive heart", which would replace the diseased heart.
“ We are paying for this very long development time. " but also " quality issues "which discouraged investors, recognizes the businessman who invested" emotionally » and personally « 50 or 60 million » euros in the project. We have been in constant contact with Anglo-Saxon and Middle Eastern funds. We have cast our net wide.", to obtain financing.
Read alsoArtificial heart: Carmat announces the end of its investigation after a “quality problem”
"Complete loss"
“ Given the level of the company's liabilities, it is highly likely that its shareholders will suffer a full loss of their investment, while a large proportion of Carmat's creditors will suffer a very significant loss that could affect their entire debts.", warns the company. Pierre Bastid acquired a stake in Carmat in 2016, during a capital increase in which two of the company's long-standing shareholders, Airbus and the Truffle Capital fund, also participated, both of which have since left the ship.
“ It is a great medical and technological success " with 122 patients implanted to date with the temporary artificial heart from Carmat, invented by Professor Alain Carpentier, recognizes Doctor Philippe Pouletty, CEO of Truffle Capital and founder of Abivax, a star of French biotech.
But he specifies that he left Carmat five years ago because of a " very deep disagreement with the company's strategy and governance", criticizing " fanciful turnover forecasts, never kept " And " small, very insufficient dilutive capital increases“.
As a last resort, Carmat CEO Stéphane Piat attempted in June to mobilize investors and even the Elysée Palace, pointing out the difficulty of accessing capital to finance innovation in France. Appealing to public charity is not how you raise money.", criticized Mr. Pouletty, saying " sad "to see Carmat disappear while"There is a very large medical need, since heart transplantation only meets 3 to 7% of the needs depending on the country, because there are not enough donors“.
Even before Mr. Bastid announced a takeover plan, the French public investment bank Bpifrance also withdrew from Carmat in May. Recovering only €500,000 of the €18 million invested alongside the State, the share price plummeted from €37 in 2016 at the time of the investment to €0.80 at the time of the sale.
English 
French