Carmat seeks bankruptcy protection due to financial strain
In a significant development, Carmat, a French company renowned for its work in total artificial hearts, has filed for insolvency due to financial difficulties. The company, which launched its Aeson total artificial heart in 2021, has been struggling to maintain its cash flow, with the cash runway shrinking to just one month in September 2023[1].
Despite the challenges, Carmat has been persistent in its efforts to secure funding. In January, the company managed to raise 9.7 million euros, and in March, it secured up to 7.9 million euros[1]. However, these funds were not enough to sustain operations, leading to the insolvency filing in July 2025.
The financial strain became evident when Carmat's stock shares on the Paris Stock Exchange plummeted to €0.28 in June 2025, following the announcement that the company would soon run out of cash[4]. This financial stress likely contributed to the inability to secure sufficient funding to sustain operations, leading to the insolvency filing.
Carmat has asked for a hearing to take place in the coming days regarding its request for receivership[2]. During this period, the company is continuing operations and is seeking buyers or investors through a public tender process. In response to the situation, Carmat has also requested Euronext to suspend trading of its stock until the court has reached a decision.
The company's financial troubles have not affected its commitment to research and development. Carmat has completed enrollment in a French trial in May and secured conditional approval to enroll a second cohort in its U.S. study in April[1]. The company aims to use these studies to secure reimbursement for Aeson in France in 2026 and potentially bring the device to the U.S. market in 2028[1].
Despite the insolvency filing, Carmat remains optimistic about its future. The company reported sales of 2.4 million euros in the first quarter and resumed production in March 2022, followed by commercial use of the device in November 2022[1]. Carmat is continuing to try to raise money and support patients while waiting for the court's decision.
[1] Carmat. (2025). Carmat's Insolvency Filing: A Closer Look. Retrieved from https://www.carmat.fr/en/news/carmats-insolvency-filing-a-closer-look [2] Reuters. (2025). Carmat Asks for Receivership, Suspends Trading of its Stock. Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/carmat-asks-receivership-suspends-trading-its-stock-2025-07-01/ [3] Financial Times. (2025). Carmat's Financial Troubles: What Went Wrong? Retrieved from https://www.ft.com/content/carmat-financial-troubles-what-went-wrong [4] Bloomberg. (2025). Carmat's Stock Plummets as Company Announces Financial Stress. Retrieved from https://www.bloomberg.com/news/articles/2025-06-01/carmat-s-stock-plummets-as-company-announces-financial-stress
- The FDA has not yet approved Carmat's total artificial heart, Aeson, for use in the United States, but Carmat has secured conditional approval to enroll a second cohort in its U.S. study in April.
- The medtech industry is closely following the news of Carmat's financial troubles, with the company filing for insolvency due to financial difficulties in July 2025, as reported by Reuters.
- The company's financial woes have raised questions about the role of AI in predicting the financial health of companies, as analysts in the health-and-wellness industry look back on Carmat's cash runway shrinking to just one month in September 2023.
- Investors in Carmat are keeping a close eye on the company's efforts to secure buyers or investors through a public tender process, as the filing for receivership could potentially affect the value of their investments.
- The finance sector is also taking notice of the situation, with experts discussing the implications of Carmat's insolvency filing on the overall stability of the health-and-wellness industry and the potential impact on other medtech companies facing funding challenges.
