A Norwalk startup has raised $1.2 million in funding as it develops a rewards system to encourage patients to take the drugs prescribed by their doctors.
HealthPrize Technologies L.L.C. is one of two startups to launch recently with roots at Stamford-based Walker Digital, along with Handhold Adaptive L.L.C. which is developing software to help parents and teachers communicate with children who have developmental disabilities and track their progress.
HealthPrize”™s CEO is Tom Kottler, who has led several startups in Connecticut and Massachusetts. Kottler started the company after hearing about “medication non-adherence” patents held by co-founder James Jorasch, developed while at Walker Digital, whose founder Jay Walker launched Priceline.com Inc. more than a decade ago.
If it seems an unusual idea to essentially ask drug companies to pay their patients for taking their medications, Kottler is quick to point out a New England Healthcare Institute study that estimates drug avoidance costs the health care industry $290 billion annually in added medical expenses.
HealthPrize”™s team also includes Dr. Katrina Firlik, a neurosurgeon formerly with Greenwich Hospital, and who coincidentally grew up three blocks from Kottler”™s childhood home outside Cleveland.
John Ruvane, who recently was hired to lead business development, said the company is close to signing its initial contract with a pharmaceutical maker.
“I think getting our first pharma customer is going to be kind of a game changer,” Ruvane said. “Once we are in a pharma company, it”™s likely to radiate over to other brands.”
Kottler said in time the company may consider expanding the platform to include adherence with medical devices ”“ for instance, tests to check blood glucose levels in patients with diabetes.
In Shelton, the Tedesco family founders of Handhold Adaptive are also looking to expand their product line, even as they await word on whether they will win a Small Business Innovation Research grant from the U.S. Department of Education.
Handhold Adaptive”™s software is designed to run on mobile devices like tablet computers, helping parents of children with autism better track behavioral tendencies and other data.
The software includes a sliding scale to rate varying behaviors ”“ for instance, aggression toward others ”“ and other reporting features to better help deduce treatments and approaches that are best helping children.
Jorasch also had a hand in the launch of Handhold Adaptive; the company”™s CEO is Dan Tedesco, who is also general counsel of Walker Digital.
Handhold Adaptive first developed iPrompts software that provides pictograms to help children with speech or developmental disabilities better communicate. The software sells for $50, less than one-sixth the price of Boardmaker software from Pittsburgh-based DynaVox Mayer-Johnson, which has long been the industry standard.
Handhold Adaptive says it donates 10 percent of iPrompts sales to the New York City-based charity Autism Speaks, launched six years ago by former General Electric Co. executive Bob Wright and his wife, Suzanne.
Last year, Handhold Adaptive received a $100,000 Small Business Innovation Research grant from the U.S. Department of Education ”“ it is now waiting word on whether it will receive a phase-two SBIR grant that would add $850,000 to its coffers.
“When someone is first diagnosed with autism, parents are in a rough spot,” said Rob Tedesco, head of business development for Handhold Adaptive. “You are told as a parent that early intervention is crucial, but at the same time there is lack of consensus on what to do.”
