Neopenda

Neopenda is a medical technology company. Its first product is a wearable vital signs monitor for newborns in resource-constrained hospitals.

According to Business Insider, “This healthcare startup is using technology to save millions of babies.”

Each year, 3 million newborns die in developing countries. In fact, according to company research, a newborn in a developing country such as Uganda is 9x less likely to survive its first month than one born in the U.S.

According to the World Health Organization, 80% of newborn deaths are preventable. Primary causes are complications of preterm birth, birth asphyxia, and infections. While these conditions are treatable, many newborns don’t receive the attention they need because facilities are overcrowded, understaffed, and ill-equipped.

To address these issues, the medical device market in Africa is growing quickly. In 2015, the U.S. alone spent $343 million in Uganda on medical equipment, a 46% increase from 2012. By 2023, the medical device market in Africa is projected to surpass $7 billion.

Neopenda is targeting this market with a line of medical devices. With its initial product — a wearable vital signs monitor — the company is targeting the 120 million newborns and children in African hospitals, as well as the 2.4 billion patients located in rural communities. Together, this presents a $715 million opportunity.

Simply put, Neopenda’s monitor enables more responsive and appropriate medical care of newborn infants.

Specifically, this patent-pending device uses what's called "reflectance pulse oximetry" and temperature sensors to continuously measure four of the most vital signs of health in a newborn:

• Pulse rate
• Respiration rate
• Blood oxygen saturation
• Body temperature

These vitals are wirelessly displayed on a tablet, which nurses can use to see the status of the babies. Nurses receive alerts when vitals go outside the appropriate range, enabling them to direct their attention where it’s needed, and provide patients with the best chance to survive. This is a dramatic change from today’s method of care, which consists of a nurse manually checking each baby’s vitals by hand.

Other companies have developed products to address this problem, including a single-use hypothermia monitoring bracelet. But Neopenda’s solution is the only one that is designed for clinical use, and offers continuous monitoring of all four key vitals. In addition, because it doesn’t require continuous stable power or a wireless Internet connection, this solution is the only one suited for low-resource settings.

Neopenda will sell its product in packages containing 15 wearables, 1 tablet, and all associated software. Each package provides comprehensive monitoring for an entire 15-bed newborn unit for less than half the price of a single machine traditionally used in the U.S.

The company’s gross profit margins on each package range between 60% and 70%, and system installation, training, and product support is included. Neopenda plans to sell packages directly to hospitals via in-country wholesale distributors, and partner with aid agencies such as Doctors Without Borders. The company is also working on a way to aggregate, analyze, and monetize the health data it’s collecting, which it believes could be of great interest to organizations like the Ministries of Health.

Neopenda is what’s known as a Public Benefit Corporation. This is a company that, in addition to generating profits, has a charitable goal or mission.

There are many opinions about whether PBCs can be good investments. Some like the idea of investing in companies seeking to make profits *and* a positive impact. Other investors believe that putting these two goals on equal footing is unrealistic.

Co-founders Sona Shah and Teresa Cauvel started Neopenda in 2015 while studying Biomedical Engineering at Columbia University. While traveling in Uganda, they witnessed first-hand the problems nurses and hospitals faced caring for newborns, as well as the opportunity to improve health outcomes for vulnerable patients.

Over the next three years, the founders spent time in hospitals testing the product with more than 150 nurses and doctors.

Neopenda has now received more than $770,000 in funding from investors including Columbia University, Cisco, Vodafone, and ADAP Capital. The company completed multiple accelerator programs, including Relevant Health, MassChallenge, HealthyMagination, and, most notably, Techstars — the accelerator that previously invested in companies like Uber, ClassPass, and Twilio.

In addition, it was featured in dozens of media outlets, including The Washington Post, Business Insider, and Forbes.

In 2017, Neopenda was a finalist in Fast Company’s World Changing Ideas Awards in the Developing World Technology category. That same year, the company’s co-founders appeared on Inc. 2017’s “30 under 30” under the “Coolest Young Entrepreneurs” category.

In 2018, Neopenda was recognized by Business Insider as one of the “Young Leaders in Healthcare” and won the Big Data Excellence Award by Computing, a company reporting on the latest technology-related topics.

In addition, the company is pursuing a CE Mark for its product, the European equivalent of FDA approval. Neopenda is in the process of pilot programs with Lubaga Hospital, Americares, and the Floating Hospital for Children program through Tufts Medical Center.

In the remainder of the year, Neopenda will complete a validation study at Tufts Medical Center and finalize the second version of its product.

In 2019, the company will complete studies in Uganda, Tanzania, and Ivory Coast, and is aiming to bring its product to market by the end of the year.

Longer term, Neopenda aims to commercialize its product for pediatric patients and, by 2023, reach $16 million in sales.

Team Background

Teresa Cauvel - Co-Founder & CTO

Prior to starting Neopenda, Teresa worked as a graduate researcher in the Stem Cell Engineering lab at Columbia University.

She formerly served as a student contractor at BABEC, the Bay Area Biotechnology Education Consortium. This company enables students to perform biotechnology experiments.

Teresa earned a Bachelor’s degree in Bioengineering from Santa Clara University and a Master’s in Biomedical Engineering from Columbia University.

Sona Shah - Co-Founder & CEO

Before starting Neopenda, Sona worked as a graduate researcher in a bioengineering lab at Columbia University.

Prior to that, she served as an engineer at Eli Lilly (NYSE: LLY), the global pharmaceutical company.

Throughout her career, Sona has volunteered with multiple organizations around the world, including Engineers Without Borders, Volunteers for Peace, and the Foundation for International Medical Relief of Children.

She earned a Bachelor’s degree in Chemical Engineering from Georgia Tech and a Master’s in Biomedical Engineering from Columbia University.

Co-Investors

TechStars

Prominent accelerator for tech companies. Investments include Uber, ClassPass and Twilio.

ADAP Capital

Supporting early-stage companies whose mission is to eradicate extreme poverty. Portfolio includes Sevamib (healthcare company) and Relevee (jewelry company).