Covira Surgical

Surgical-related infections cost the U.S. healthcare system more than $34 billion a year. More than a quarter million Americans die from these infections annually.

Covira Surgical is a biotech startup that’s targeting this problem. Named one of the 20 Most Innovative Companies to Watch by "Business Worldwide," this startup has patented technology that leverages the power of the human gut. This technology enhances the body’s immune system and lowers a person’s risk against infections due to surgery.

This technology is based on the work of Dr. John Alverdy, Founder of Covira and a global authority on the role of the body’s microbiome system in preventing surgical infections.

The Alverdy Lab at the University of Chicago receives continuous funding from the National Institutes of Health (NIH) and studies the molecular interactions of bacteria and the intestinal system to understand how life-threatening infections arise following trauma and major surgery.

Working with Dr. Alverdy is CEO Peter Farmakis, a seasoned executive in the life sciences industry. He previously held senior roles at Johnson & Johnson (NYSE: JNJ) and Abbott (NYSE: ABT), as well as at four startups. This includes two early-stage companies in the biotech space that were acquired by larger corporations.

Together, their focus is on reducing the incidence and severity of post-operational surgical infections. Despite advancements in practices like operating room ventilation, sterilization methods, and surgical technique, these infections still occur at every hospital.

Infections are a significant cause of prolonged hospitalizations, re-admissions, and patient illness and death. Most infections are due primarily to pathogens that are resistant to antibiotics administered to the patient.

Covira’s solution reduces the risk of infection and related complications following surgical procedures. Here’s how:

Its solution is called Pi-PEG, short for “phosphate covalently bonded to polyethylene glycol.” Pi-PEG is a prescription medicine that’s administered as a drink. This drink coats the intestinal tract and works to prevent post-op infections.

Prior to surgery, the patient will receive a prescription for Pi-PEG, which comes in powdered form to be mixed with water. Patients drink the colorless, tasteless solution before and after their procedure.

Inside this solution is a novel non-antibiotic agent that prevents lethal bacterial infection by enriching the body with a key element needed to grow and reproduce phosphate. Phosphate-rich environments provide a key cue to bacteria to suppress their harmfulness and growth.

In pre-clinical studies, Pi-PEG has prevented infection and suppressed the spread of multiple drug-resistant bacteria strains. It causes fewer side effects than many antibiotic solutions and can even be prescribed along with the use of antibiotics.

Pi-PEG has proven to be safe and effective in studies with small animals. The next steps are to complete the Pre-Investigational New Drug Application and begin discussions with the FDA. Following that, five months of Phase 1 in-human proof of principle trials will begin.

Once available, Pi-PEG will be sold to hospitals and healthcare facilities. Covira noted that the cost of Pi-PEG per patient will be $210, a significant savings over the $39,000 hospitals pay per surgical infection case, on average.

Longer-term, Covira’s technology could be used for local applications (such as creating a biologic bandage equipped with Pi-PEG), and used with surgical prosthetic materials (for example, coating aortic replacement grafts or breast implants with Pi-PEG to prevent infections).

Team Background

John Alverdy - Chief Scientific Officer

Dr. Alverdy is a surgeon-scientist and a world leader in surgical infection research. His focus is on the molecular basis of surgical infections.

He is the Sarah and Harold Lincoln Thompson Professor of Surgery and executive vice-chairman of the department of surgery at the University of Chicago. He has received funding from the NIH for his research consistently since 1999.

In 2016, Dr. Alverdy was President of the Surgical Infection Society and received the American Surgical Association’s Flance-Karl Award in 2018. This award was given for his work in surgical infection pathogenesis and microbiome research.

He graduated from medical school at the Autonomous University in Guadalajara, Mexico, and spent one year at Loyola University Chicago’s Stritch School of Medicine. He completed his surgical residency at Michael Reese Hospital, affiliated with the University of Chicago, and a surgical research fellowship at the University of California-San Francisco.

Peter Farmakis - Chief Executive Officer

Peter has a proven track record in the biotech space, including selling two previous startups.

Most recently, he was on the executive team with SmartHealth Catalyzer, a company accelerating the commercialization of therapeutics, diagnostics, and medical devices. Prior to that, he was President and CEO of VitaHEAT Medical, a medical device company selling products aimed at keeping patients regulated during surgical procedures.

Before that, he was a general manager with Abbott, a healthcare company with a $234 billion market cap. While there, he also spent time as Head of U.S. Commercial Operations and Director of Marketing & Sales. Prior to that, he was a manager with Johnson & Johnson, a company he joined after his startup, OraPharma, was acquired by J&J for $85 million.

Earlier in his career, Peter was a marketing manager with Solvay, a pharmaceutical company acquired by Abbott. He began in business development with Dynasplint, a medical device startup.

He holds a Bachelor’s degree in Pre-Physical Therapy and an MBA from the University of Illinois Chicago.

Scott Hales - Chief Financial Officer

Scott works part-time as Covira’s Chief Financial Officer.

He brings 30 years of financial and advisory experience to the company, including time in the life sciences and medical device spaces. Notably, he spent time with Citi Capital Strategies, a division of Citigroup, completing M&A opportunities and capital-raising deals.

He holds a Bachelor’s degree in Business Management from Notre Dame and an MBA from Northwestern University.

Co-Investors