BioTech

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Ruth Eden demonstrates BioLumix' device for microbiological testing in industrial products. She shows how the device, which will be coming to market in the next quarter, may be able to reduced testing costs by a factor of two to four.

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Filed under: Ann Arbor, MI | BioLumix | BioTech | Early Stage Innovation | New Enterprise Forum | Ruth Eden

We continue our series on BioLumix with Ruth Eden, BioLumix's co-founder, Ruth Eden, providing a demonstration of the device. The demonstration illustrates how BioLumix lowers the cost of microbiological testing in industrial products by a factor of 2 to 4 (from $20 a test to possiby $5 a test). A few highlights:

• Testing is accomplished by putting the material in a specialized vial that ranges in price between $2 to $3 depending on the test. Labor time is approximately 2 minutes, and no skill is required.
• The BioLumix software automatically produces the required reports.
• Traditional testing requires a trained microbiologist who grows cultures in petri dishes and then counts them.
• The traditional report must be produced by hand.

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Some follow up questions to BioLumix's elevator pitch. We discuss competitors, FDA, and how exactly a company might need to run hundreds of microbiology tests per day.

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Filed under: Ann Arbor, MI | BioLumix | BioTech | Defining New Markets | Early Stage Innovation | Gideon Eden | New Enterprise Forum

 We follow up Gideon Eden's elevator pitch for BioLumix with a few clarification questions:

• Competitors vary by segment. In larger segments, like food, pharmaceuticals, and cosmetics, BioLumix is competing with other rapid testing technologies. In nutraceuticals, BioLumix is competing against external labs.
• FDA's testing mandate for nutraceuticals is rather loosely defined. These companies are mandated to test but the precise tests themselves are left to the company to justify.
• A nutraceutical can easily run 100's of tests per day.  These companies have multiple products and each product can require multiple tests.  For instance, a company with 20 products, each requiring 5 tests per day, would consume 100 test vials per day.

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BioLumix has developed a product to detect bacteria and microorganisms on-site in production facilities. Its target industries include food, pharmaceuticals, and nutraceuticals. BioLumix's initial focus is on the nutraceuticals segment estimated at $250 M/year.

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Filed under: Ann Arbor, MI | BioLumix | BioTech | Defining New Markets | Early Stage Innovation | Gideon Eden | New Enterprise Forum

This interview with Gideon Eden, CEO of BioLumix, is the first in our New Enterprise Forum series. In this series we are looking at early stage technology companies. At the heart of these companies is innovative intellectual property coupled with a potential business model. The goal of these interviews is to understand how the entrepreneurs got to where they are now and why they think they can succeed.

BioLumix has developed a product to detect bacteria and microorganisms on-site in production facilities. Its target industries include food, pharmaceuticals, and nutraceuticals. BioLumix estimates the total testing market in those segments to be $2.2 B/year. Its initial focus is on the nutraceuticals segment estimated at $250 M/year.

The nutraceutical segment has recently been subjected to new regulatory requirements by the FDA that they test their production processes for contaminants. These firms typically have neither testing labs nor trained microbiologists so must outsource their lab work at great time and expense. The bioLumix product reduces both the cost and time associated with testing. Recently, over the course of two major industry gatherings, the firm garnered 150 qualified leads and 10 definite orders.

BioLumix operates off of a "razorblade" financial model. Their product comes in two parts: an electronic tester and disposable testing vials. The tester costs $15,000 and the vials $2 to $3 apiece. Over time, the financial outlay for the vials far exceeds that for the original tester.

In future segments, we'll explore the details of the business model, get a demo of the tester, and discuss with Gideon and his co-founder Ruth Eden how they founded BioLumix.