New medical device platform takes flight: Global Health Sciences Fund invests in Canary Medical’s proprietary, “smart” implant technology designed to improve outcomes in post-surgical patients

The Canary Health Implantable Reporting Processor (CHIRP) uses innovative sensor and novel communication technology in medical devices to enable remote patient monitoring. “Smart” medical devices will self-report on everything from patient activity to recovery and even treatment failure, without the need for physician intervention or a dependence upon patient compliance.

May 17, 2018 13:06 ET | Source: Quark Venture
VANCOUVER, British Columbia, May 17, 2018 (GLOBE NEWSWIRE) —
Today, Quark Venture Inc. and GF Securities, through their Global Health Sciences Fund (GHS), announced a US$10 million investment in Canary Medical Inc., a medical data company dedicated to improved healthcare outcomes through the use of proprietary, “smart” medical devices. The investment is part of two tranches for an aggregate US$26 million, which also includes BioScience Managers and Relentless Pursuit Partners’ Venture Fund.

The Global Orthopedic Implants Market was valued at greater than $47 billion in 2016, and is expected to grow to $75 billion by 2023. This translates to nearly $1 billion worth of medical implants currently inserted surgically into patients on a weekly basis1. With few exceptions, these devices are silent with no monitoring capability. Canary will provide real-time feedback through its CHIRP™ system on an implant’s performance to be analyzed using Canary’s Data Analytics™ software. Their resulting medical grade, super data set from the Canary implant and connected informatics network will enable better healthcare delivery for clinicians – passively and remotely – translating to improved patient outcomes and reduced healthcare costs.

“One of the problems with wearable health and fitness monitors is that people forget to wear them, wear them only when they’re going to be active, or get bored with them and stash them away in their night table drawer,” says Bill Hunter, CEO of Canary Medical. “Wearable data is just not adequate, accurate, or continuous enough to base important medical decisions upon it; the Canary system eliminates all these problems. The funding provided by this financing will enable development of the ‘smart’ artificial knee implant through to commercial release. We have multiple use cases for the system; in addition to a variety of orthopaedic applications, we will be tackling vascular implants next.”

“Following surgical implant procedures, patients regularly ask themselves things such as ‘Is this normal?’ and ‘Is my medical device implant working properly?’ The medical data collected by the Canary sensors will improve rehabilitation and alert clinicians to when a re-intervention is necessary before it is an emergency, thereby improving patient outcomes and doing so at a lower cost,” said Karimah Es Sabar, Chief Executive Officer of Quark Venture and Director of GHS Fund. “Canary’s innovative system is a compelling example of Canadian-based disruptive technology that is at the forefront of digital diagnostics and healthcare management. Dr. Hunter’s expertise and reputation, and the subject-matter expert leaders he has teamed with, provide a strong foundation for investors who understand that the success of the next wave of medical technology requires out of hospital monitoring,” said Ms. Es Sabar.

__________________________
1 Reference: https://www.alliedmarketresearch.com/orthopedic-implants-market

 

About Canary Medical Inc.

Canary Medical was conceived and created by a team of surgeons, medical device developers, and IoT experts with the vision that (1) healthcare transformation requires better and cheaper healthcare data, (2) better monitoring and better data will produce better outcomes at lower costs, and (3) patients own their healthcare data and should be compensated for its use. Canary Medical’s patented implant and data management ecosystem technology provides the vehicle to implement its vision. Canary is led by Bill Hunter, MD, a seasoned entrepreneur with previous experience founding and leading a successful medical device company based on breakthrough technology (Angiotech, which developed the TAXUS® Drug-coated coronary stent implanted in millions of patients worldwide). Canary’s team is globally regarded for its medical device design and development expertise. For more information, visit http://canarymedical.com/

About Global Health Sciences Fund

Global Health Sciences Fund was jointly established by Quark Venture Inc. and GF Securities in 2016. Global Health Sciences Fund is a health sciences venture fund that invests globally in a diversified portfolio of innovative biotechnology and health sciences companies that are addressing unmet medical needs through innovations in drug development, medical devices, health IT and emerging convergent technologies. For information about Quark Venture or GF Securities visit https://www.quarkventure.com/

For more information about Canary contact Dina Darsaklis at cdarsaklis@canarymedical.com

For more information about Quark Venture contact Kaley Wilson at kwilson@quarkventure.com

Canary Medical and BioScience Managers form CHARM Informatics

BioScience Managers commits AUS$10M to new joint venture with Canary Medical to serve as a platform to collect and monetize data from implantable and wearable medical devices.

Vancouver, British Columbia, Aug 1, 2017 – Canary Medical (Canary) is pleased to announce the formation of CHARM Informatics Pty Ltd (CHARM), in collaboration with BioScience Managers Pty Ltd (BioScience) of Melbourne, Australia.

CHARM* is a Melbourne-based medical informatics startup that will provide data aggregation and monetization services to makers of “smart” medical devices. CHARM’s data management services will enable any device maker, no matter how large or small, to make its data more useful to the U.S. and other major healthcare ecosystems.

“There is a lot of medical and quasi-medical device data out there already, and a lot more coming on stream,” said Bill Hunter, CEO of Canary, “everything from wearable fitness trackers to implanted sensors integrated into pace makers or diabetes monitors.” According to Hunter, “many of the companies making these devices are having trouble creating value from the data they generate.”

Many device companies stumble when they grapple with the expense of regulatory compliance, pricing and reimbursement, and the complexity of making data usable to a large and diverse set of stakeholders that includes patients, physicians, hospitals, and insurers. CHARM will provide the necessary infrastructure, often on a revenue-sharing basis, allowing many fledgling device companies to realize their initial strategic visions.

Users of medical data have long appreciated the power of smart devices to provide timely, accurate data. Unfortunately, physicians have been deterred by the complexity and cost associated with adopting a new interface and payment mechanism for the several devices that address a given condition, while hospitals and insurers face the same problem, but an order of magnitude worse, as each disease state is served by a wide range of technologies.

Matt McNamara, CIO of BioScience, is convinced that CHARM will be part of the solution. “This is a situation that cries out for a platform-based solution: a common interface that makes it easy for device companies to make their data actionable, and doing it through a single, integrated interface that makes it easy for healthcare providers to improve outcomes and reduce costs.” Where applicable, CHARM will also assist with obtaining formal pricing and reimbursement from governments and payers based upon the medical monitoring and outcome data collected.

Hunter concurs. “Very few device makers are able to create different data streams for every provider and payer system out there, or to ensure that they are compliant with the ever-changing regulations that govern health data. And government and private payers don’t want 500 devices on 500 separate platforms. CHARM solves both problems at once. Device companies will be able to collect, transmit and store raw medical device data, then analyze, format and dispense interpretable data to patients, healthcare professionals, providers and payers.” Hunter continued, “users of data will be able to exploit the power of smart devices much more efficiently thanks to shared technical standards, uniform regulatory compliance, and common payment terms.”

The CHARM platform will reduce costs for both device companies and data users through economies of scale by eliminating overlapping investments in IT infrastructure. CHARM’s knowledge and experience navigating the healthcare reimbursement landscape will save device companies and payers alike endless headaches, as CHARM will be able to provide assistance with pricing and reimbursement.

As the CHARM platform grows, it will be increasingly valuable to aggregate data from any given device with health insights gained from other devices or data sources. For example, it will be possible to learn far more about the interaction among a given disease state, treatment protocols and rehabilitation efforts. CHARM will license Canary’s unique, patent-pending, auction-based data monetization algorithm. This method combines the whole of a patient’s monitoring activity (e.g., medical devices, fitness/health trackers, self-reported data, etc.) into a form more useful and valuable to hospitals, payers, and others, and monetizes it in ways that provide powerful incentives to device companies and patients, all while respecting patient privacy and device company trade secrets.

“Thanks to the unique ability of CHARM to generate insights through the combination of data from multiple sources, CHARM becomes more valuable to those device companies on the platform as more device companies join the platform,” said McNamara. “The classic positive feedback that drives platform businesses in general will be especially strong for CHARM.”

BioScience has invested AUS$10M for a 45% stake in CHARM. This will fund the development of a HIPAA-compliant data management system, including software, hardware, and the APIs needed to allow a wide range of smart medical devices to use the CHARM platform. Canary will provide senior leadership and technical expertise, and also holds a 45% stake in CHARM.

CHARM’s first data client will be Adherium, a maker of a smart inhaler in which BioScience has a significant ownership position. CHARM’s development and business plan forecasts a commercial launch in Q1 2019.

————-
* The collective noun for canaries is “charm”.