Veriphi

Medication error is one of the most common causes of patient harm in the hospital system, costing billions of dollars and thousands of lives globally. Veriphi is a New Zealand company that has worked to develop a highly innovative laser-based analyser to verify intravenous drugs and alert clinicians before administration to prevent medication error in hospitals.

Minimum investment: $1,000.00

$734,096
Funded
Min target: $400,000 (4.75% equity) Max target: $2,000,000 (19.95% equity)
Ended Thu, 26 May 2016 12:00am (NZST)
156 Number of investments
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$734,096 Funded
$400,000 Min target (4.75% equity)
$2,000,000 Max target (19.95% equity)
Offer closed 00:05am, 26 May 2016

Investment Highlights

  • A revolutionary solution for intravenous medication safety.
  • Laser verification of intravenous drugs, using analyser and consumables.
  • Intravenous most common and most dangerous of hospital medications errors.
  • 100% success for Veriphi analyser across 40 blind trials of 10 drugs in 4 containers with data measured across three temperatures.
  • 7 Patent Families, 2 approved US patents, 1 additional US patent about to be granted.
  • Imminent validation trial at Auckland City Hospital.
  • Trials planned for other New Zealand hospitals and internationally in Melbourne and New York.
  • Advisory team of some of New Zealand’s leaders in anaesthesia and medication safety.
  • Long established relationships with potential global partners in IV medication delivery.
  • Over NZ$6m invested to date.
  • Highly experienced board and executive team.

Welcome to Veriphi

Veriphi is an exciting New Zealand medical device company that is seeking $400,000 - $2m to commercialise its revolutionary intravenous (IV) drug verification technology.

Medication error is the most common cause of patient harm in the hospital system, costing billions of dollars and thousands of lives globally. IV medication errors are more common, harmful and costly than errors from oral or other medications.

To be able to verify the actual contents of an IV bag or syringe prior to administration is the holy grail of medication safety, providing a level of safety beyond manual checks or bar-codes. Veriphi’s analyser uses lasers to do precisely this, confirming, prior to administration that the drug and concentration inside the syringe, IV bag or IV line, is the one the patient is supposed to receive.

The company’s revenue will come from the sale of analysers and consumables that allow the laser beam to pass through the drug for verification. Exponential growth will come as a result of recurring revenue, where Veriphi consumables are used every time a drug is verified across a rapidly expanding footprint of analysers.

Market entry will be initially focused on hospital pharmacies and medication rooms, where drugs are stored or compounded before being delivered to patients. The money raised will be used to translate existing analyser and consumable prototype designs into a commercial format for a trial on 15 oncology drugs at Auckland City Hospital. This clinical validation will lead to early sales in New Zealand and further planned trials in the United States and Australia. We anticipate globalization in partnership with a large multinational. Exit options are most likely to come from a trade sale or consolidation of shares by a significant new private investor.

The Problem

Medication errors are among the most common medical errors, harming millions of people globally every year. In New Zealand hospitals medication error causes an estimated 150 patient deaths1 and potentially contributes to up to 2,500 in total2, costing an estimated NZ $158–$411 million per annum3.

In US Hospitals, medication error injures 400,000- 700,0004 people and causes an estimated 7,000 deaths at a cost of US$3.5B-$5.6B per annum.

Intravenous medication errors account for over half of this total and are twice as likely to cause harm than from drugs administered via other routes5. Examples include a 33 year old mother in Sydney in 2010, left paralysed from the waist down6 when injected epidurally with a cleaning agent. In 2012 a Wairarapa patient was unintentionally administered two doses of adrenaline causing heart arrhythmia requiring defibrillation.

The Solution

Veriphi Ltd is a New Zealand company that has developed a highly innovative laser based analyser to verify intravenous (IV) drugs to prevent medication error in hospitals.

The Veriphi medication safety solution, developed over the past 7 years, will be arguably the simplest and safest way to prevent such tragedies occurring.

The system works by placing Veriphi’s consumable containing the drug in the beam path of the analyser. The consumable has optical windows that allow the laser beam passage through the drug and consumable walls to a detector. The optical information received by the detector is compared against a library of known signatures for speci c drugs. The Veriphi system then alerts the clinician if the drug presented is not the one intended to be administered.

The Benefit

To be able to simply and quickly verify the correct identity and concentration of IV drugs in non destructive testing is widely acknowledged in New Zealand and abroad as the holy grail of IV medication safety. As such, a solution that does this would be a “game changer”. This is particularly the case since recent overhaul of pharmacovigilance legislation in the EU and USA. The objective of the changes was to tighten up on drug traceability and verification as part of Good Manufacturing Practice. The US changes were sparked by a major tragedy due to non compliant preparation of sterile drugs in a single Boston pharmacy that caused the death of over 60 people across the United States in 2012 and 2013.


[1] Extrapolated from David et al study 2001.
[2] Extrapolated from Seddon et al IHI Trigger Tool Study 2013.
[3] Briant, Ali, Lay-Yee, Davis, New Zealand Med J 2004; Brown, McArthur, Newby et al, J Health Serv Res Policy 2002; Kunac, Kennedy, Austin et al 2009; Extrapolation Harvard Medical Practice Studyy, N Eng J Med 1991.
[4] Institute of Medicine 2000, 2006. Agency for Healthcare Research and Quality Report, 2002,2008.
[5] American Journal of Health-System Pharmacy 2008.
[6] http://www.sbs.com.au/news/article/2011/06/29/epidural-tragedy-mum-speaks-out.


Technology Status

Veriphi has two working proof of concept bench top prototypes, involved in ongoing tests at its facilities. The technology achieved 100 % success recently across 40 blind trials of 10 drugs in 4 containers with data measured across three temperatures. The ability to repeatedly and accurately verify drugs using data collected from multiple drugs in multiple containers across temperatures is a major milestone.

Veriphi’s next step is to build a commercial prototype incorporating further refinements for hospital validation.

IP Status

Veriphi’s intellectual property is protected by seven patent families including two approved US patents with a third US approval likely in the next 12 months. A seventh patent application is imminent.

Resources and Partners

Veriphi’s technical team has developed its novel solution working closely with industry stakeholders - notably, Auckland District Health Board, Callaghan Innovation and a range of technology contractors.

As the company moves into its commercialisation phase it has appointed an impressive clinical advisory team of some of New Zealand’s leading clinicians. We have also established relationships with other hospitals in New Zealand as well as Alfred Hospital/ Monash University, Victoria, Australia and Stony Brook University in Long Island NY, USA, for hospital trials following the successful completion of trials at the Auckland City Hospital.

Commercialisation

Veriphi’s revenue will come from the sale of analysers and consumables. The business model is to expand the population of analysers in hospitals to maximize recurring revenue from consumable sales. The consumable initially will be an IV connector with optical windows that allow the transmission of laser light at the required wavelengths. The connector will attach to other IV consumables such as syringes, IV bags and IV lines.

As the cost and size of the hardware is reduced the technology will become more widely dispersed beyond pharmacies and medication rooms to bedside use.

Fundraising

We are raising between $400,000 - $2 million for between 4.75 – 19.95% of Veriphi Limited.

This funding will be used to:

  • Translate current prototype design into a commercial format for trials at Auckland City Hospital.
  • Conduct validation trials at Auckland City Hospital.
  • Achieve first revenues.
  • Secure a deal with a global partner.

Veriphi Team

Photo of Roger Lampen

Roger Lampen Chairman

Roger Lampen is the founder of several highly successful staffing companies, including Geneva Healthcare Ltd, Lampen Associates Ltd and Lampen Group Ltd. He is an active investor and is currently a significant shareholder in and chairman of Veriphi Ltd and Confurmo Ltd, a UK start-up in the background screening technology sector.
Photo of Greg Shanahan

Greg Shanahan Managing Director / Founder

Greg Shanahan is Managing Director and Founder of Veriphi. Greg has 28 years experience in technology development, operational and marketing roles in New Zealand and US. He is also Founder of Technology Investment Network publisher of the TIN100 Report, New Zealand’s leading annual quantitative report on the Technology Export Sector. Prior to founding TIN Greg worked for Fisher and Paykel for 10 years.
Photo of Gavin Mitchell

Gavin Mitchell Director

Gavin Mitchell is a business strategy and market development professional with experience in multiple industries including health, public safety, manufacturing and retail. He is a Founder and Director of business consultancy nVision. Previously he was Commercial Manager at Industrial Research Ltd (IRL, now Callaghan Innovation). Prior to joining IRL Gavin has held senior management roles with Jade Software Corp (a software development company), Spectrum Resources (an NZX-listed venture capital company) and a number of other software companies.
Photo of Jason Bloom

Jason Bloom Director

Jason Bloom is the Global Head of Finance for global apparel company Icebreaker. He is a finance and strategy professional with twenty years of experience, including Equities Research for Investment banks Deutsche Bank and UBS, where he covered sectors including Technology and Healthcare. In addition, Jason has had operational roles at RACQ, Air New Zealand, and consulting work for his own company Decision Lab.
Photo of Dr Ray Simpkin

Dr Ray Simpkin Lead Scientist

Dr. Ray Simpkin has a PhD in physics from the University of London. He is the lead scientist for Veriphi, responsible for Veriphi’s system design and evolution. Ray is a senior scientist with Callaghan Innovation and has been working with Veriphi since 2010. As a researcher, engineer and project manager with 34 years of work experience he has gained an in-depth mathematical, computational and practical understanding of imaging and sensing technologies spanning ultrasonic, optical and radio frequency methods.
Photo of Dr Maarten Hoogerland

Dr Maarten Hoogerland Physicist / Technical Advisor

Dr. Maarten Hoogerland is a physicist from Auckland University. He consults to Veriphi primarily around laser performance and control. His university research work is centered on the interaction between light and matter, specifically in the field of spectroscopy and lasers. Maarten worked in laser research in the Netherlands, the United States and Australia before moving to New Zealand.
Photo of Professor Alan Merry

Professor Alan Merry Specialist Anaesthetist / Clinical Advisor

Professor Alan Merry has authored 3 books, 17 book chapters and more than 120 papers in peer reviewed journals in his specialist areas of patient safety, human factors and simulation. He was recognised internationally in 2013 when he became just the 34th individual to be awarded honorary membership of the American Society of Anaesthesiology.
Photo of Ian Costello

Ian Costello Chief Pharmacist / Clinical Advisor

Ian is Chief Pharmacist & Pharmacy Services Manager at Auckland District Health Board. Previously he was Chief Pharmacist at the Royal Marsden Hospital in London. While there he was Chair of the British Oncology Pharmacy Association (BOPA).The aim of BOPA is to promote excellence in pharmaceutical care of cancer patients through education communication research and innovation. Prior to that Ian was Chief Pharmacist at Birmingham Children’s Hospital.

Warning statement

It's crucial for you to understand the characteristics and risks of this investment opportunity. New Zealand law normally requires people who offer financial products to provide in-depth information to investors before they invest. The usual rules do not apply to offers by companies through Snowball Effect. As a result, you may not be given all the information you need to make an informed decision. Investing is risky. Some of the key risks include loss of capital, illiquidity, lack of returns, dilution, loss of key people and customers, and lack of control. You should only invest money that you can afford to lose.

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