MedAware raises funds to grow medical-study database

BROOMFIELD — MedAware Systems Inc. is looking to change how physicians, pharmaceutical companies, payers and patients access the latest research in science and medicine.

The Broomfield-based company has developed a database compiling the data points from thousands of published medical studies and journals.

Now, the company is raising capital by offering convertible debt. MedAware has raised $150,000 and plans to raise a total of $425,000, according to a Form D filed with the U.S. Securities and Exchange Commission.

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The funding will go to increase staff, CEO Michael Willis told BizWest.

“We need staff on the data-collection side,” he said. “There’s no software that can do this on its own. We’ve invented a unique combination of software and human intelligence.”

MedAware employees comb through medical journals and enter basic information into the database such as the name of the journal and the year a study was published, but Willis said the meat of MedAware’s value comes from having information such as the treatment and outcome measurements available in the database.

Using MedAware, physicians can ensure that they’re accessing the most-up-to-date information. Rather than having to read every study published, something that’s essentially impossible, a doctor can enter patient data such as age, gender and ailment into the database, and see the best recommended treatment and any new information that’s been uncovered by researchers.

Pharmaceutical companies are also using the database, which has been the company’s main source of revenue. For example, Nestle commissioned MedAware’s database to show that while a medical nutrition product they have is more expensive up front than what competitors offer, when used before abdominal surgery, it greatly reduces postoperative infection and bleeding. By searching through more than 100 studies, MedAware was able to prove that Nestle’s product ultimately saves patients and payers money. Nestle is now launching an international marketing campaign based on the information, Willis said.

Looking ahead, Willis is focusing on potential major growth markets, such as the European Union.

“Countries there have required medical-device manufacturers to certify their products for safety, but that’s changed,” Willis said. “They’re adding a component to the regulation that requires companies to demonstrate evidence of efficacy. In other words, they have to show how their products work compared to competitors. With a socialized medical system in the EU, people are keen on only buying things that are both safe and effective. If it doesn’t qualify, they won’t certify.”

With just five years to demonstrate the efficacy of their products, it’s cheaper and faster to search through published studies than to try and launch a new clinical trial.

“We’re seeing a lot of opportunity ahead of us to work with companies in the EU,” Willis said.