BiomX collapses into court proceedings after clinical trial fails
Israeli biotech seeks trustee to manage asset sales amid NIS 11 million debt.
BiomX, one of Israel's most promising biotechnology companies, filed an urgent request with the Central District Court on Tuesday seeking authorization to initiate insolvency proceedings. The move follows the termination of its main clinical trial and the absence of funding sources to continue operations. The company’s debts are estimated at at least NIS 11 million (approximately $3.4 million).
Founded in 2015, BiomX develops cocktails of natural viruses designed to attack and destroy harmful bacteria that cause chronic diseases, without disrupting beneficial neighboring bacteria. The filing states that the parent company, BiomX Inc., has invested hundreds of millions of dollars into the Israeli subsidiary over the years.
According to the application, the company has focused in recent years on treating cystic fibrosis (CF) patients suffering from chronic infections. Despite positive initial results, a second clinical trial that concluded in December 2025 revealed unexpected side effects among patients, prompting a recommendation to discontinue treatment.
The application notes that BiomX reported cumulative debts of approximately NIS 11 million to various suppliers in Israel and abroad, with additional obligations to employees. The company currently holds about $1.3 million, recently transferred by the parent company to support essential operations, including the safe closure of experiments and handling of hazardous biological materials.
BiomX’s primary assets consist of its intellectual property, which includes dozens of patents registered worldwide. The filing indicates that the main shareholder is the American parent company, publicly traded on the New York Stock Exchange, into which BiomX merged in 2019. Its scientific founders are world-renowned experts: Prof. Rotem Sorek and Prof. Eran Elinav of the Weizmann Institute, and Prof. Timothy K. Lu of MIT. The board of directors includes Marina Wolfson, Jonathan Solomon, and Dr. Russell Greig. The company currently employs approximately 20 people, after laying off half of its workforce to facilitate regulatory closure procedures.
The company is requesting that the court appoint a trustee to review offers to purchase its assets or operations, with the Cystic Fibrosis Foundation already expressing preliminary interest.
