While the medical equipment sterilization market is less hyped than the healthcare startups industry, it’s growing. The global market is projected to hit $8 billion this year and surpass $11 billion by 2023, according to a report by market intelligence provider Research and Markets Ltd.
San Clemente-based Verrix LLC is raising capital to support late-stage clinical efforts on its device, which validates processes used to sterilize surgical supplies and equipment.
The company seeks a $6 million to $10 million series B, said Chief Executive Cameron Rouns.
Good for Space
The foundation of Verrix’ technology came from NASA’s investment in planetary protection—every NASA space vehicle traveling to another planetary body is subjected to a rigorous process of cleaning and sterilization.
“The technology needs to meet a higher level of cleanliness for planetary protection, and we are packaging that most advanced technology to revolutionize sterility assurance and help protect patients from hospital-acquired infections,” Rouns said.
Verrix was formed in 2013 as a spinoff of the Jet Propulsion Laboratory, commonly known as JPL, and the California Institute of Technology. Co-founder and Chief Scientific Officer Adrian Ponce is a JPL investigator. He helped develop a technology to speed up the sterilization validation process, and founded Verrix using funds from the Environmental Protection Agency and private investors to expand the technology into healthcare.
Rouns was named chief executive last year. He said the company “is presently operating on the basis of a successful series A investment” that closed in 2016, and will use proceeds from the new round to complete product development and commercialization. It plans to file for Food and Drug Administration clearance this year.
Cleanliness
Major factors driving the growth in the sterilization equipment market include the growing aging population, which contributes to an increased volume of surgeries, as well as the rising focus on sterilization and disinfection. Medical equipment sterilization is meant to prevent infection and double surgeries. The latter is a core mission of the Affordable Care Act; under the Hospital Readmission Reduction Program, which launched in 2012, hospitals are penalized financially if they have high readmission rates.
While hospitals and healthcare providers have the option to use single-use devices, cost and waste are factors to consider, according to Rouns.
The current sterilization gold standard includes steam and dry heat. Major players include Maplewood, Minn.-based 3M Co., Swiss device maker Steris AST and Swedish healthcare company Getinge Group.
