This Company Wants To Trade EKG Electrodes For A Smart Shirt

In the second part of a two-part interview with Noble Biomaterials CEO Jeff Keane, the executive discussed the potential ramifications of the use of Noble’s X-static anti-microbial and soft-surface conductivity technology in health care.

It begins, Keane said, with bio monitoring.

Related: Noble Biomaterials CEO Jeff Keane Discusses Solving The 'Stinky Socks' Problem And More

Health Care Applications

Importantly, according to Keane, technology like that provided by X-static is beginning to move into the health care environment.

“Instead of putting all those electrodes all over you for EKGs,” he said, “eventually we expect to help at home patients have their vitals monitored with a piece of clothing.”

“We're beginning to see brands and companies move into the idea of building this bio-monitoring capability into smart apparel.”

Wound Care

“As a startup, our second customer was Johnson & Johnson JNJ,” Keane said. “They started putting our technology into advanced wound care products. Today it’s called the Systagenix brand.”

“These are products used for chronic wounds, primarily something you might find on someone with diabetic ulcers. A bandage with our product dramatically reduces the bio load that is within that wound bed.”

“In addition to Systagenix we've added Kinetic Concepts Inc., the largest advanced wound care player in the world and others. The idea of putting our exotic technologies into these advanced wound care products means we can drop the bacterial load and allow healing to occur.”

Infection Prevention

The last piece in health care is about preventing infection, Keane said. This accompanies, he noted, a recognition in the infection prevention community that there is a void within its protocol.

A huge part of this is a phenomenon known as Healthcare Acquired Infection (HAI) that takes place when a patient goes into a facility for a basic procedure and acquires an infection there.

According to Keane, it’s a global issue with half a million deaths worldwide.

“On average,” he said, “if it doesn't kill you will be in the hospital an extra 6 to 7 days.”

Reimbursement Halted For HAI

In addition to being a serious health care issue, HAI has financial ramifications according to Keane.

“Starting about 18 months ago,” he pointed out, “the Centers for Medicare and Medicaid Services (CMS) stopped reimbursing through Medicare for HAI.”

Privacy Curtains And More

Adding to the problem, Keane noted, is that within the infection prevention community, concentration has centered on canned hygiene (Purell) and hard surface sanitization.

Unfortunately, he said, between 80 and 90 percent of patient interaction is with soft surfaces such as nurses scrubs, privacy curtains, lab coats and so forth.

Building Momentum

“We're beginning to build momentum,” Keane said, “for the addition of X-static technology into the soft surfaces that interact with the patient. It’s a place where the infection prevention community can add value and protection that could lead to lower infection rates.”

“We are working with Arc-Com, the largest provider of privacy curtains in North America,” Keane said. “We've worked with emerging scrub manufacturers and patient gown manufacturers, lab coat manufacturers and Dickies uniforms.”

From Startup To Emerging

Keane pointed out that Noble has moved from a startup to an emerging company in a short period. “Revenue is growing rapidly,” he said. “We are profitable.”

“Our commercial development is an indication of how these three platforms are relevant to the marketplace. The marketplace has said we need solutions around these issues.

Related: JPMorgan Cut Its Johnson & Johnson Forecast Before Earnings, But Why?

Spreading The Gospel

Even though our commercial development has really accelerated, there’s still quite a bit of work to do, according to Keane.

“Our team spends a lot of time spreading the gospel,” he said. “We can really add value to that soft surface. That running shirt can be reused. It doesn't need to smell. That advanced wound care product can add value in getting that diabetic walking again sooner.”

“Ultimately,” Keane said, “we have to be careful that we don't oversell. We tend to produce specific benefits. A great indication is the world-class partners we have. Our relationships with Lululemon Athletica Inc. LULU and Kinetic Concepts - two large, fast growing organizations - helps provide credibility.”

At the time of this writing, Jim Probasco  had no position in any mentioned securities.