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Peter Kassel, HealthySole - Ultraviolet-C (UVC) Light that Kills Pathogens | LSI Europe '22

Speakers

Peter Kassel

Peter Kassel

CEO, HealthySole
Read Biography
HealthySole is the pioneer and technology leader in reducing the pathogen load in settings where pristine environments are required: hospitals, compounding pharmacies, pharmaceutical R&D and manufacturing, food handling, and even EMS and law enforcement.

Transcription

Peter Kassel  0:08  

So 10 years ago, my father entered into a hospital for a routine biopsy and contracted an infection that nearly killed him. And in the process, we started to ask ourselves really what had happened within that space. My name is Peter Kassel, I am CEO of HealthySole. We are the first clinically validated product that uses UV light to combat the spread of shoe born pathogens within hospital settings. Infections are becoming more consistent and more severe. This is caused by a number of complex you know, complex situations and these complex situations end up consolidating at the frontline of our medical system, our hospitals, hospitals end up bringing together all of these infections into a space in which they share staff and facilities. As a result within the United States. Nearly 700,000 patients a year contract an infection that they did not enter with. The cost of this burden is placed upon the hospital and it continues to create a risk for care providers and patients. as well. The Center for Disease preparedness is currently tracking seven diseases with pandemic potential. So how did we get here, shoes are one of the most under addressed contributors to pathogenic spread within a hospital. The soles of shoes contain more than 6 million times more pathogens than the toilet seat within a patient's room. As well these shoes are able to circumvent any current hospital protocol at any time. Shoes essentially are the number one Trojan horse of bacteria within a facility. They're both the most infectious products within a hospital, and ironically, the most mobile as well. And with even the most perfect janitorial situation in which you would sanitize a room, these pathogens hitchhike on the souls of care providers and visitors reinfecting A space. That's right. Even if you were to fully disinfect a room, these rooms are back at pre disinfection levels of infection load within three hours. A hospital room at best case scenario is cleaned every 12 to 24 hours, which means massive windows in which rooms are their most virulent. So how do we address the issue, we get to the sole of the problem. The healthy soul is the first clinically tested UV product, which addresses the soles of shoes and the pathogens they're on using an innovative interface. You stand on the unit simply for eight seconds UV light is exposed to the soles of shoes, and we see a very large reduction in terms of pathogens, as well. This is a really visible method in which hospitals are taking action, which has been shown to create a morale boost within care providers and increased trust from patients. We've had clinical independent tests which have shown our product to be very effective within the eight seconds against the worst viruses and bacteria that currently deal with that hospitals currently deal with. as well. We found that when placing a unit outside of an oncology room, we saw a reduction of surface based C Diff within the room on walls and clean air inputs by 30%. That means that just by addressing pathogens on the soles of shoes, we saw reductions of environmental pathogens up to nine feet in the air within a hospital room. as well. The University of Houston School of Pharmacy did a test in which they spiked a pair of shoes with a DNA tag strain of E. coli. They then moved through the room as any care professional would and then did hundreds of swabs to test off the surfaces. They found that 100% of their swabs showed positive for that strain of E coli. After using our product that was reduced 73%. 98% of the swabs on the furniture showed positive for that strain of E coli, which was only previously present on the soles of shoes. Our product reduced that by 93%. On the bed, we saw a 92% reduction, and most importantly on the patient. There was an 88% reduction of a strain of E coli, which was previously only present on the soles of shoes. This is why our product has been adopted by some of the most scientifically critically minded facilities in the world. The National Institutes of Health purchased a unit to do internal validation testing of our product. And once they proved what they needed, they purchased our unit and adopted it in Frederick's laboratory. Frederick's National Laboratory does all the FDA testing for cancer, AIDS and vaccine medications meaning that it is currently Government protocol to stand on the HealthySole when testing medications for some of our most intense medications, as well, our product has been adopted by one of the largest confectionery companies in the world that I'm contractually unable to say the name of, and they use it in a QA facility of theirs to test their product. In a post COVID worlds, the market for infection control has grown dramatically. We see that in the US are tam is roughly 2.8 billion. We will focus on a Psalm of roughly 150 million by addressing hospitals, long term care, EMS and police departments. Our largest customers are returning customers, customers who purchase one to three units for internal validation testing, and then come back and adopt on a very large scale. One customer is a network of long term care providers in Kentucky, which purchased three units and then probably came back and purchased 105. This is a severely untapped market. booties do not address microbiology, as well. Chemical weapons while being completely untenable for healthcare situation also involve highly toxic chemicals, complicated and expensive disposal as well as biological resistance. Our nearest competitor deals with potential 510 K compliance from the FDA, as well as EPA issues because of the use of ozone as well. Their use of brittle, inexpensive quartz glass makes their product exceptionally more expensive than the healthy sole. The healthy soul is a fraction of the cost of our nearest competitor, as well we retain 75% gross margin on each unit. We have a continued revenue stream of replacement parts and in service models and are working on a SAS subscription model to help streamline compliance for our customers. Everything you've seen here is protected with three utility patents which have been awarded throughout the world in our largest potential territories. And we are able to through our technology essentially get maximum robustness for the lowest cost and the greatest level of efficacy. I am honored to be joined by a fantastic team, our chairman and COO Robert Castle has successfully grown to companies that have had successful IPO exits. Our head of sales Nick has over 30 years of sales within medical startups. And our advisors are Kathy where I who is one of the leading voices of infection prevention awareness within the United States and Max Trainer who's has over 10 years of experience building sales teams at three unicorn startups. We've currently raised $5 million from friends and family. With that 5 million we have secured global IP. We have fully manufactured our device and have recently signed with one of the largest medical distributors within the United States. With the funds that we're looking to raise here we're going to deploy with greater market and scaling. We want to establish a European office for EU operations due to Europe's attention towards infection control. And we want to continue to develop our SAS compliance model so as to have a greater returning revenue stream. We have 65 clients and we've had a revenue of 1.3 million. We estimate within the next five years that we will be able to drop the cost of our unit by nearly 40%. To produce we hope to see a revenue of 89 point 6 million with a EBITA of 52 million. Currently, we're raising $40 million through Regulation A plus. But we're also looking to raise an additional 20 million through Regulation D raises. What we plan to do with this is to continue to scale our operations. We want to make approval, improvements to the product due to customer feedback, develop the SAS compliance incorporate within the EU and as well invest heavily in continued studies and validation of both the issue and our solution as the problem exists but hasn't been mentioned much. Thank you very much for your time and have a great day.

 

 

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