Acme Home Health Testing
Acme Home Health Testing (AHTwas aimed at moving simple lab testing out of the doctor’s office ($200.00 cost) or clinic ($120.00 cost) and into consumer homes ($25.00 cost). For 16 indications, from strep throat to vaginitis, consumers could buy a test kit at a drugstore like CVS and then call in the results (displayed as a secret code) to a Nurse/PA who could then prescribe drugs. We did not invest.
- Assessment:We looked at investing 3 times over a 3-year period. But the patent work was not convincing. This was long enough for us to learn that the promised patent strategy would not protect the application as promised. Even if it worked, and they got through all the industry hurdles, they would be unable to protect their “system.”
- Outcome: The company failed to raise capital.
- Learning:Our conviction about the importance of IP was the right one, as it probably predicted a lot of other issues with promises the company had made. We should have “dug deeper” into the patentability early on with our own patent counsel to get an opinion before spending so much time with the company. The idea, however, is still terrific – and is being rolled out nationally by companies like EverlyWell.