Health Tech: FemTec Lawsuit

Women’s Health Initiative FemTec Health has cut 10% of its workforce, and Zurich-based Ava has filed with Swiss regulators to back unpaid wages, Axios has learned. Erin wrote.

Why is it important? In October, Axios wrote that the company was struggling to achieve its broader mission and vision of “transforming women’s health care” using modern digital tools.

Grab it fast. An earlier report by Axios alleges that Femtech founder Kimon Angelidis misrepresented the company’s financial and operational status and failed to pay several suppliers, including Ava, which makes wearable and FDA-approved fertility tracking bracelets.

Details: At the end of last year, Ava filed a lawsuit against Switzerland’s debt enforcement office, the Betreibungsamt, to recover unpaid wages, according to emails seen by Axios. In a response to an email seen by Axios to Ava’s former CEO, Yaya von Bieder, Angelidis warned that Ava’s claims would “have a significant impact on the company.” Angelides wrote:

• “While we understand that you and others are forced to make such claims, these claims and the consequences of this will have a significant impact on the company and QvQ shareholders. If this happens, the value of any shares or interest in the company will go to zero. This is what you want as the former CEO. I believe it is not a result.
• “Following the above, the loss of a company accelerated by claims made personally by a former CEO can have personal reputation (sic) consequences and tragic (sic) personal failures, when not wanted. Make no mistake here, there is nothing we can do, but if the company fails shortly after , and if this is in the public record, things can be distorted, and they just shouldn’t be. I want to avoid this by all (sic). On behalf of.”
• “This does not mean that we did not find value in the acquisition of Ava, but some unexpected challenges occurred. We will try to do the best we can, to recover and build shareholder value. The end is good. This Betreibung does not help and puts everyone on QvQ. [holding company] Side by side in a very difficult situation.”

Note: FemTec had 82 employees in October, according to Pitchbook and LinkedIn data. It now employs 49, according to LinkedIn.

What they say: A Femtech spokesperson said in an emailed response to Axios that “Dr. Angelidis raised a question regarding a salary request that is in the best interest of the company and shareholders.”

• A spokeswoman confirmed the cut, saying the reduction was due to the company’s reorganization and “supports our strategy going forward.”
• Lea von Bidder did not respond to multiple requests for comment.