Thread Gets $50M to Boost Remote Clinical Work

Tustin-based Thread, a healthcare-focused technology firm whose offerings allow pharmaceutical and medical device companies to perform decentralized clinical trials, sees opportunity amid the pandemic.

“We’re looking to improve the clinical trial experience for everyone involved, starting with the patient. Our approach will ultimately bring new therapies to market in a faster time frame,” said Thread Chief Operating Officer Sean Vassilaros.

Traditionally, participants in a medical trial—such as those testing a new vaccine, drug treatment, or medical product—are required to visit a designated site for assessments and monitoring over the course of a trial.

Thread’s mix of software and services, on the other hand, allows “decentralized” clinical trials through telehealth visits, the use of wearable devices and at-home visits that complement, or in some cases replace, in-person services. 

All of the data gleaned remotely can be accessed and viewed by the study’s sponsors through Thread’s automated management platform with the tools to conduct trials, track and correct patient data over a course of weeks or months, and ultimately accelerate the commercialization of new therapies. 

It’s a new way of doing business that’s seeing a big increase in interest amid the corona-virus, when use of telehealth-type services have skyrocketed.

The pitch had already caught the attention from Chicago-based Water Street Healthcare Partners and JLL Partners in New York, which a year ago acquired Thread on undisclosed terms.

This month, the two PE firms said they had upped their investment in Thread, committing an additional $50 million to grow the business.

Money from the latest funding will be used to make Thread the go-to firm for services of its type, company officials said.

“Every decision, initiative and action we make is focused on expanding Thread’s leadership position to further benefit our customers and support them with decentralizing their global clinical trials,” said President John Reites.

Investors Keen on OC

Thread officials knew their new owners planned to ramp up operations after the acquisition, but hadn’t expected the coronavirus to accelerate plans as much as they have.

“We chose JLL and Water Street because of their reputation and history—their ability to come in and take companies to the next level,” Vassilaros said of the ownership change.

“They’ve absolutely delivered on that. They believe in our product, they believe it’s the future and they’ve taken great strides to prove that to us.”

Since the acquisition, Thread has expanded its footprint to 40 countries. It has facilitated more than 100 trials to date.

Water Street has taken an interest in OC’s thriving medical device scene of late: the strategic healthcare firm also invested in Irvine-based urology diagnostics firm Pathnostics in 2019. 

It typically makes investments between $50 million and $500 million. 

Scott Garrett, former chairman and CEO of Brea-based Beckman Coulter, serves as a senior operating partner with Water Street. 

Digital Accelerant

When the pandemic hit, Thread responded with an express offering that helped trial sponsors convert on-site visits to remote visits.

Turnaround time for a digital transition is about 10 days on average, the company said. 

Thread Express meets recent guidance provided by the U.S. Food and Drug Administration and the European Medicines Agency on how to manage trials during the COVID-19 pandemic, the company said. 

“Now more than ever, our biopharma and [clinical research organization] customers need solutions that enable them to continue research during the pandemic and enhance their designs for future studies,” said Reites, who lives in the healthcare research hub of Durham, N.C., where the company has a second office.

Vassilaros, former COO of Irvine healthcare agency Ignite Health, lives in Orange County, where a bulk of the company’s employees are based.

Compressed Timeline

Thread offers three “decentralized” trial models: crawl, walk, and run. 

• Crawl simply introduces remote research capabilities without replacing in-person visits. 

• Walk is a hybrid model that includes a mix of in-person and remote visits. It is the company’s most popular offering. 

• Run only includes telehealth and at-home visits, and does not require patients to travel to a physical location. 

While the traditional business model for clinical trials continues to rely on different touch points and manual data entry that slows down the process, Thread said it reduces the timeline through its platform. 

“We’re able to shrink that timeline of data being collected and shrink the timeline of recruitment,” Vassilaros said. “Studies show the No. 1 delay in clinical trials is recruitment, because most sites are searching for patients who live within a 20 or so mile radius. Thread removes that constraint.”

By addressing patient concerns that impact clinical researchers and trial sponsors, Thread has been able to gain traction in an industry that Vassilaros described as “notorious for moving slowly.”

He said, “It’s incredibly risk-averse, and understandably so, because we’re dealing with lives and human health.”

Roots in Pharma Sector

Thread, which also operates under the name Definitive Media Corp., previously worked with Apple Inc. (Nasdaq: AAPL) on research studies related to remote technologies, such as smartphone apps with diagnostic tools that are compatible with third-party devices that can track weight, blood pressure, and glucose levels. Those studies were done in conjunction with academic medical institutions including Johns Hopkins University and University of Southern California. 

The studies, and the software that powered them, led to the foundation for Thread’s platform. 

In 2018, it also worked with Novartis AG (NYSE: NVS) to develop an open-source platform that enables visual acuity tests to be performed on smartphones.

Today, Thread’s LaunchKit and management platform helps trial sponsors set up and manage a clinical trial within one portal.

Trial sponsors enter information for branding, registration, eligibility and notifications. They can also select additional services such as wearable devices, telehealth services, and a data capture method known as “eCOA” provided by Thread.

From there, Thread generates a portal for the trial host, as well as a physician-facing platform and a consumer-facing mobile app that is customized to each study.