GlucoLight: Helping Diabetics with a Noninvasive Glucose Testing System
In a shocking testament to modern dietary habits, the National Institutes of Health recently reported that children born this decade have a one in three chance of developing diabetes by the time they are 50.
And while the staff at GlucoLight-a BFTP incubator-based photonics company-can’t change people’s eating habits, they are poised to make it a whole lot easier for diabetics to monitor their condition.
The disease, which currently affects at least 18 million Americans and another 200 million people worldwide, is reaching epidemic proportions, especially in children. Diabetics must regularly test their blood sugar levels, which involves drawing and testing blood samples multiple times a day.
The Quest for Noninvasive Monitoring
“Many companies have tried to develop a noninvasive methodology to test for glucose,” says Ray Krauss, CEO of GlucoLight. “Over the past 20 years, perhaps 100 companies have been started and subsequently failed.”
Using a proprietary infrared light technology, GlucoLight believes it has found an effective, marketable way to measure glucose levels-a method which dramatically reduces the amount of finger pricking and blood testing diabetics must endure. The prospects are good-diabetes care is a $6 billion-a-year market.
“We have identified a way to measure tissue within the skin to provide an indirect measurement of patients’ glucose levels,” says Krauss. “Our technology scans the skin with the infrared light and gets an updated data point every 30 seconds.”
Investing in Promising Ideas
In 2003, BFTP made a $150,000 investment in GlucoLight. The funds helped the company develop a sensor that was used in a successful clinical trial at Lehigh Valley Hospital in early 2004. “BFTP took the risk, and it was huge,” Krauss says. “With the money they provided, we built the prototype, performed the study and got encouraging results.”
GlucoLight’s first commercial application will be in hospitals, specifically intensive care units and operating rooms. “If you can control hyperglycemia, you can reduce the stay and morbidity rates of patients,” Krauss says. “In leading-edge hospitals, if you have heart surgery, they prick your finger every hour, 24 hours a day, for three days to check blood sugar. Our technology will provide a continuous reading so a nurse can look at a graphical display and not have to prick the patients to get a sample.”
Adapting to Consumer Needs
GlucoLight is about two years from market. While they go through the FDA approval process, Krauss will be focused on raising the capital required to miniaturize the product-a key step in entering the consumer market.
“Eventually, it could be the size of a cell phone. A diabetic will be able to wear the device and continually monitor his blood sugar,” Krauss says. “Blood samples would only need to be done once or twice every three days or so to keep the system calibrated.”
In late 2005, GlucoLight closed on a $4.5 million round of private funding, with a substantial portion of that coming from a venture capital group based in France. Life Science Greenhouse of Central PA has also invested in the company.
Fostering the Entrepreneurial Spirit
Krauss is no stranger to startups. He left a successful career at Johnson & Johnson, where he helped pioneer laser eye surgery, to help grow an early-stage company in Boston that developed the Lasik eye procedure, now a $1 billion industry.
Krauss retired from the company in 1996 and came back to Bucks County. “Until three years ago I was semi-retired, consulting with other startups, when I met Matt Shurman,” he says. “When Matt first told me he had a way to measure glucose noninvasively, I was skeptical. But I quickly realized Matt was on to something and that it was a problem worth solving.”
Because so much venture money had already been invested and lost in this pursuit, Krauss knew it was going to be an uphill battle. “So we approached BFTP for assistance. They also saw that we were onto something important and were willing to invest in us-and in the future of diabetic care.”
An Asset in the Incubator
A self-described “grizzled veteran” at the age of 56, Krauss has helped grow two companies from zero to $75 million revenue. Wayne Barz, director of the BFTP incubator where GlucoLight is currently located, refers to Krauss as the “entrepreneur-in-residence.”
“Most of the companies in the incubator are run by people who have never led a company before,” Barz says. “Ray is a much more experienced CEO. He came to us needing less help than most, with a ton of contacts and experience. He shares that knowledge with others in the incubator.”
The BFTP Incubator is a model program, earning the coveted Incubator of the Year Award in 2001. “Incubators are a swirl of activity and you need a bunch of different ingredients to have a vibrant program,” Barz says. “Ray is a great part of our current mix.”
“There are 16 other companies in the incubator, and I’m happy to share my knowledge and experience,” he says. “Helping other entrepreneurs is one way I can give back to the community and to Pennsylvania.”
The Right People in the Right Place
To Krauss, success comes down to people. “With decent technology and top shelf people, we’ll make the company successful. With top shelf technology and OK people, it could very well fail. I’m blessed at GlucoLight with great technology and excellent people.”
Now that GlucoLight’s technology is proven and the science phase is over, Krauss’ main challenge is to identify a manufacturing and distribution partner, and to continue to recruit top shelf people.
“We are developers. We don’t want to make or distribute the device, so we are focused on product development and clinical trials,” Krauss says. “We plan to grow from eight to 15 people in 2006, so we’ll need to recruit more great people to our technical team.”
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