Aclarion develops an MRI-based and cloud-enabled software platform to help identify the source of chronic low back pain. Pulse 2.0 interviewed Aclarion CEO Brent Ness to gain a deeper understanding of the company.
Brent Ness’ Background
Could you tell me more about your background? Ness said:
“In 1993, I began my career selling technology to hospitals in a Chicago-based territory. Since then, the majority of my time has been invested in Diagnostic Imaging and Spine verticals. I’m blessed to have been involved with a combination of new technology start-ups and world-class market leader companies like GE Healthcare, Medtronic, Philips and Heartflow. These teams provided incredible customer engagement experiences around the globe and opportunities to learn from the very best leaders in the MedTech and Imaging fields.”
Formation Of The Company
How did the idea for the company come together? Ness shared:
“The idea for Aclarion came about as renowned spine researchers at UCSF sought to solve the incredibly complex problem of understanding the source of chronic low back pain, which plagues over 266 million people worldwide. The root cause of pain in many circumstances is not easily identifiable through traditional imaging studies like CT and MRI scans because the source of the pain may be physiologic, not anatomical. When the team discovered they could identify the source of pain biomarkers using MR Spectroscopy and quantify the biomarkers that correlate to pain, they knew they were on to something very valuable to society and potentially to investors.”
Favorite Memory
What has been your favorite memory working for the company so far? Ness reflected:
“Our Nasdaq IPO was certainly an exciting moment for the company and for me personally, but now, after nearly 4 years as Aclarion’s CEO, I’m inspired by the daily work, alongside people who share our vision of a world where chronic low back pain is simply managed better. We have had zero turnover on the team, we work with some of the most respected surgeons and pain management physicians in the world, and have assembled a team of consultants that support marketing and staff functions who do exceptional work.”
Core Products
What are the company’s core products and features? Ness explained:
“Our flagship platform is Nociscan, a decision-support tool forphysicians treating low back pain. The initial input into the report is derived from an MRI machine using a function called MR Spectroscopy. That spectroscopy data is sent to us in the cloud where we apply unique and patented algorithms that identify which disc or discs are likely sources of pain. As mentioned earlier, you can’t always “see” the pain source in traditional imaging. Our study objectively measures pain-generating biomarkers that can’t be seen but can be identified through a Nociscan. We share an easy-to-interpret report withthe treating physicians who can then provide better treatment plans using the details thatNociscan provides.”
Challenges Faced
Have you faced any challenges in your sector of work recently? Ness acknowledged:
“Integrating a disruptive technology into the standard of care in healthcare is difficult work. Broad physician adoption requires evidence, efficacy and reimbursement. We are very focused on addressing these building blocks to standard of care to ensure physicians can confidently embrace the Nociscan platform in a way that works within the healthcare system’s norms. Getting positive insurance coverage is the predominant challenge shared by all new technologies that don’t fit within an existing device or test currently being reimbursed in the market. To overcome these requirements of the insurance companies, we have built out a fantastic KOL team and are investing in a national randomized controlled trial called CLARITY that aims toprove that patient outcomes improve when physicians use Nociscan to identify the painful disc levels that require treatment.”
Evolution Of The Company’s Technology
How has the company’s technology evolved since launching? Ness noted:
“We have invested in the platform to improve the customer experience by making it easier to acquire the MRS data as well as improving the scalability and security of data transfer.”
Significant Milestones
What have been some of the company’s most significant milestones? Ness cited:
“Gaining reimbursement coverage with 3 of the top 4 private insurance companies in the UK is by far our most significant milestone. This single market success provides the test case for our strategy worldwide. When Nociscan is paid for by insurance, the volume of orders will increase. This drives revenue and market adoption. When we succeed in growing scan volume in the UK, we demonstrate that we can succeed in every market where Nociscan is reimbursed.”
Customer Success Stories
Can you share any specific customer success stories? Ness highlighted:
“One of our surgeon customers used Nociscan to inform his treatment of a 26-year-old male who was suffering from debilitating back pain. He couldn’t do any of the activities that he loved, and was going down the dangerous road of pain medication to resolve it. When the surgeon utilized Nociscan, it helped identify a better treatment option that he subsequently deployed. The results were truly heartwarming. This young man is now back to living a life he loves, surfing, biking and just being a healthy young adult.”
Funding/Revenue
Are you able to discuss funding and/or revenue metrics? Ness revealed:
“We have funding that will get us through the preliminary CLARITY results with no debt, no near-term warrant overhang and a clean cap table. Our scan volume is growing quarter over quarter and revenue from the UK is projected to grow with the adoption I mentioned above. We are not providing specific guidance at this time but do encourage investors to monitor our press releases that demonstrate success in evidence building, CLARITY execution and scan volume growth.”
Impact Of Chronic Low Back Pain
What is the impact of chronic low back pain on the US healthcare system? Ness answered:
“There are 266 million people who suffer from chronic low back pain worldwide, and the World Health Organization considers chronic low back pain an epidemic, so the problem is global.
In the US, chronic low back pain is a leading healthcare expenditure. There are more than 630,000 spinal fusion surgeries per year, 80% of patients have post-surgery discomfort, 10-40% have persistent post-surgery pain, and approximately 6% of these patients require a revision surgery. These facts present quite a significant economic burden to the healthcare system and specific challenges for the patients. The US fusion market alone represents a significant addressable market in the hundreds of millions of dollars.”
Differentiation From The Competition
What differentiates the company from its competition? Ness affirmed:
“Our competition is either an invasive, expensive, painful and subjective test called provocative discography, or simply not knowing which disc is causing the pain. We hold over 40 patents that uniquely position Nociscan as the only way to determine the pain-generating biomarkers inside a patient’s discs.”
Future Company Goals
What are some of the company’s future goals? Ness emphasized:
“Success in the CLARITY trial would clearly demonstrate that using Nociscan improves patient outcomes. We are also working to add local coverage decisions from payers around the world while driving scan volume through the engagement of physicians and thought leaders. We also believe that societal endorsements play a key role in helping physicians comfortably adopt new technologies like Nociscan. We are working with physician thought leaders to further that objective.”
Additional Thoughts
Any other topics you would like to discuss? Our team is growing. Ness concluded:
“We are looking for people who want more than a great job. We need people who want to help end the suffering of people with this debilitating condition by working with world-leading physicians and imaging organizations. Please reach out to us if this mission is something you want to be a part of and feel you have the skills that could make an impact.”
