VQ Biomedical, a medical technology company developing an innovative oxygenation catheter for treating acute respiratory distress syndrome (ARDS), announced it has closed a $1.65 million round. The funding is led by Harbright Ventures, the Wolfpack Investor Network (WIN), and Duke Capital Partners (DCP) with a collective $970,000 investment.
VQ is a Duke University spin-out, and its intellectual property was developed as a collaboration between the Duke University School of Medicine and the Pratt School of Engineering.
Along with this equity funding, VQ has received a $750,000 contract through the Biomedical Advanced Research and Development Authority’s Division of Research Innovation and Ventures Healing Lungs initiative and a $2.4 million Small Business Innovative Research agreement with the Defense Advanced Research Projects Agency (DARPA). This funding round will enable VQ to develop a commercial prototype, which can be tested for safety and efficacy in an in vivo mode to support future Investigational Device Exemption submissions.
ARDS is a life-threatening condition where the lungs fill with fluid, often due to severe infection or trauma, and the condition affects about 390,000 adults annually in the U.S. and European Union, with a mortality rate of 27% to 45%.
The treatment options include mechanical ventilation and extracorporeal membrane oxygenation (ECMO,) but come with significant risks and costs. And mechanical ventilation may lead to ventilator-induced lung injury and may not adequately support oxygenation. ECMO, used for severe cases, extracts blood, oxygenates it through a machine, and returns it to the body.
However, this process is expensive and complex, requires specialized personnel, carries infection and bleeding risks, and is only available in about 10% of US hospitals.
VQ’s oxygenation catheter provides a novel alternative for ARDS treatment by directly delivering oxygen into the bloodstream, minimizing the risks and costs associated with traditional therapies. And initially, it could replace venovenous (VV) ECMO for severe ARDS. In the long term, VQ seeks to reduce reliance on mechanical ventilation for all ARDS patients, resulting in safer ventilation, more ventilator-free days, and shorter ICU stays.
VQ’s catheter effectively provides significant oxygen levels in early proof-of-concept large animal studies. And the company’s catheter design aims to enable bedside insertion with a single dial for oxygen flow, simplifying use compared to ECMO. The company has been awarded a $750,000 contract through BARDA’s Healing Lungs program.
The North Carolina Biotechnology Center has supported VQ with a $300,000 Strategic Growth Loan. Most recently, DARPA announced a $2.4 million contract with VQ to make its device smaller, more efficient, and easier to use in resource-restricted environments, such as military deployments.
— CEO Galen Robertson is an entrepreneur with 20 years of experience in medical devices.
— Chief Medical Officer Tobias Straube, M.D., an expert in mechanical ventilation and ECMO with extensive experience treating critically ill patients with ARDS, is an Assistant Professor of Pediatrics at Duke.
— Lead Engineer Stewart Farling, Ph.D., an expert in oxygen and small molecule transport, completed his Ph.D. research at Duke and holds a B.S. and M.S. in Environmental Engineering from North Carolina State University.
— Principal Scientist Marc Deshusses is Professor of Civil and Environmental Engineering at Duke with extensive experience in gas-liquid mass transfer optimization.
— Scientific Advisor Bruce Klitzman is emeritus faculty in Surgery and Biomedical Engineering at Duke.
— DCP member Joseph Knight, who led DCP medical device portfolio company InnAVasc through its successful acquisition by Gore, will serve on VQ’s board.
— John Leachman also will serve as a board observer.
KEY QUOTES:
“Duke, initially through the leadership and guidance of Duke New Ventures and then through an early investment from DCP in this round, has been a fantastic place to transform VQ Biomedical from an idea into a venture-worthy business. The addition of WIN and its venture partner, Harbright Ventures, nearly doubled our overall investment and connected us with Harbright’s leaders, John Leachman and Robert Ross, and their network of early-stage MedTech investors.”
- Galen Robertson, CEO of VQ Biomedical
“It’s inspiring to see such a promising advancement in ARDS treatment. VQ’s innovative catheter system could be a game-changer in critical care, and we’re excited to support their mission to improve patient outcomes and save lives.”
- Abby Phillips, WIN’s Director
“Duke Capital Partners and the Duke community are excited to support this innovative medical device startup. We’re particularly proud that Toby, Galen, and the team are growing VQ in the Triangle, tapping into our tight-knit biotech entrepreneurial community.”
- Kurt Schmidt, Managing Director of Duke Capital Partners
