Phantom GI, a developer of minimally invasive gastrointestinal devices, announced on October 8, 2026, the initial closing of a $5 million Seed round led by Pitango Healthcare, with participation from RAD Biomed and RUNI Ventures. The company will use the capital to advance PercStoma, a patent-pending device designed to create an ostomy without conventional surgery or general anesthesia. The funding will also support the first phase of U.S. clinical studies for the technology.
Addressing an Unmet Clinical Need
Up to 55,000 patients in the United States die each year as a direct result of malignant bowel obstruction, and many cannot undergo a surgical ostomy under general anesthesia to relieve the obstruction. The total cost of conventional surgery can approach US$70,000 per procedure, creating a substantial healthcare burden. Phantom GI estimates that more than 100,000 U.S. bowel obstruction patients could potentially benefit from a minimally invasive option each year.
Clinical Origins of PercStoma
The concept originated from research by Phantom GI Co-Founder and Chief Medical Officer Dr. Eran Shlomovitz, whose clinical training spans general surgery, medical imaging, and therapeutic endoscopy. In 2023, he encountered a patient with malignant bowel obstruction who had been deemed inoperable and used off-the-shelf interventional devices with X-ray guidance to access and decompress her bowel. The procedure succeeded, allowing her to return to a normal diet, resume work, and continue treatment for her underlying cancer.
How PercStoma Works
Conventional surgical ostomy requires an abdominal incision and general anesthesia, and reversal typically involves a second major operation with significant complications. PercStoma instead accesses the bowel through a single needle puncture under local anesthesia and X-ray imaging, then positions a proprietary stent between the bowel and the skin surface. The device diverts bowel contents into a standard stoma bag, and Phantom GI is targeting a procedure time of approximately 20 minutes.
A Simpler Reversal and Regulatory Status
Phantom GI also intends for the stoma to be reversed through a rapid, office-based procedure rather than a second major operation. In conventional surgical reversal, complications can be significant, and up to 50% of eligible patients may be unable to undergo the secondary procedure. PercStoma has not yet received regulatory approval and remains under investigation as the company prepares for initial studies in patients who are not suitable for surgery.
Leadership Vision
Ido Sadan, CEO and Co-Founder of Phantom GI, said that for some patients the standard surgical option is simply too invasive, and in some cases not an option at all. He stated that Phantom GI, founded in 2025, was built on the belief that creating an ostomy should not necessitate major surgery. Sadan added that the vision is to make minimally invasive intervention an alternative to surgery across ostomy indications with a significantly reduced healthcare burden.
Investor Perspective
Dr. Jonathan Glazer, Partner at Pitango Healthcare, said Phantom GI's team is challenging the surgical paradigm that has defined ostomy creation for decades. He noted that a shift to a percutaneous approach could reduce treatment complexity and significantly expand who can be treated. The investment, he added, exemplifies the clinical and strategic value emerging from Israel's medical device ecosystem.
Phantom GI is now preparing for initial U.S. clinical studies that will evaluate whether the procedure works in patients who are not candidates for surgery. While the technology remains unproven, a successful result could establish a new minimally invasive category in ostomy care, a large but slow-growing market. If PercStoma performs as designed, it may offer a safer and more accessible alternative for patients facing malignant bowel obstruction and other serious gastrointestinal conditions.