Klein Medical

Who Is Veriphi?

Veriphi is a trail blazing New Zealand medical device company which is using laser verification to prevent injury and death from intravenous (IV) medication error in hospitals.

The company will sell analysers and IV consumables incorporating features that allow the analyser to verify the actual drug inside. The analyser automatically ensures that the drug and concentration it sees are correct for the patient. This makes it easier for the clinician to keep the patient safe with minimal disruption to workflow. The company has successfully completed proof of concept blind trials and is now building a commercially specified version as it prepares for imminent hospital trials on 15 oncology drugs in Auckland Hospital Pharmacy. The solution has potential application anywhere IV drugs are prepared or given in hospitals. Consumable usage will ensure that the company is paid every time a drug is verified using its system. Veriphi intends to build a local business prior to expanding internationally with a major global partner.


Medication Injury and the Health Crisis

Medication Injuries in US Hospitals. Preventable medication errors in US hospitals injure 400,000 people per annum, at a cost of US$3.5 Billion (IOM 2006). Other studies (AHQR 2008) rate the cost as high as US$5.6B and injuries up to 700,000 with deaths per annum at 7000 pa.

The cost when extended to long-term care and outpatient facilities is significantly more. A total of 1.5 million Americans are injured every year (IOM 2006) throughout the US health system.

Intravenous Medication Injury. In the United States, 60% of serious and life-threatening medication errors in general inpatients involve intravenous medications (Eskew JA, Jacobi J, Buss WF et al, 2002) A similar percentage (56%) of medication errors involving i.v. medications was found in a study from the United Kingdom (Ross LM, Wallace J, Paton JY 2000). and are twice as likely to cause harm to patients as medication delivery by other routes (American Journal of Health-System Pharmacy 2008

Therefore we estimate US Intravenous Medication Errors to be causing approximately 300,000 injuries and 4000 deaths at a cost of US$3B per annum.

In New Zealand the annual cost of preventable ADES is estimated to be up to NZ$158m per annum.

Adverse Events In US Hospitals Adverse Drug Events are the most common serious adverse safety event. In a typical 300-bed hospital, annually there are1300 Adverse Drug Events, 1260 Hospital Acquired Infections and 1000 Procedural Complications (Source: First Consulting Group 2004/ Cardinal Health 2008)

Reducing Healthcare Costs. Reducing adverse events in hospitals is an obvious way to make healthcare more affordable. Over the past decade US Healthcare spending has grown 2.5 points faster than GDP. If this trend continues US Healthcare spending will account for 30% of GDP by 2030 – from 16% in 2007. (Source: Frost and Sullivan 2009) This growth is unsustainable. Other countries are grappling with similar problems, particularly those with rapidly aging populations, such as Japan. Growth in chronic diseases is rising with ageing population profiles. (Source: Frost and Sullivan 2009)