ICU ‘High Risk’ Needle Protects Health Workers : AIDS Creating Market for Such Products, Firm Says

Dr. George Lopez, like most people, believes that the AIDS epidemic is a tragedy of the first magnitude. But Lopez, a physician-turned entrepreneur, also believes that AIDS and other contagious diseases are creating a market for products that protect health care workers from accidental infection.

He spent eight months developing his latest product--a shielded hypodermic needle that cannot accidentally stick doctors, nurses or other health workers once it has been used.

Long before the first working prototype was ready, the telephones started ringing at Lopez’s company, ICU Medical Inc. The Huntington Beach firm has been deluged with inquiries and orders for the new “High Risk” needle largely because of medical professionals’ fear of contracting acquired immune deficiency syndrome and other highly contagious diseases should they accidentally stick themselves with contaminated needles.

Unlike a conventional needle, the ICU version has a plastic guard that slides up and covers the end of the needle after it has been used. Once the guard locks into place, it cannot be retracted and the needle is rendered harmless.

“You can give this needle to your son to play with after you give it to an AIDS patient,” remarked Lopez, founder and chairman of ICU. “You wouldn’t want to, but you can.”

So-called self-stick accidents are surprisingly common in hospitals, said Dr. Julie Gerberding, project director of the AIDS health care study at San Francisco General Hospital, one of the nation’s leading AIDS treatment centers.

Gerberding, who has tracked the more than 300 self-stick incidents that have occurred at San Francisco General in recent years, said that although the odds of contracting AIDS from a single puncture accident are quite remote, the

likelihood of contracting other diseases--particularly hepatitis-B--is much greater.

Of 900 known accidents nationwide involving needles used on patients with either AIDS or AIDS-related conditions, only three of the injured health care workers have tested positive for the AIDS virus, Gerberding said. By contrast, 19% to 35% of all needle sticks involving hepatitis-B ultimately result in the health care worker’s contracting the disease.

At $1.50 each, the ICU needles are priced very high; conventional needles cost about 5 cents each. Eventually, Lopez said, ICU plans to bring the price down to between 10 and 35 cents apiece.

However, the current high price, Lopez said, has not dampened interest in the product.

“The phone has been ringing off the hook,” said Lopez, an internal medicine specialist-turned entrepreneur. “Before it was available, we had calls and orders from 2,200 hospitals and home-care companies.”

ICU, which also manufactures and markets various catheter-related products designed to minimize the spread of infectious diseases, had revenues of $50,000 last year, Lopez said.

‘Click Lock’ Connector

Among the company’s other products is a “click lock” connector that not only prevents intravenous tubes from accidentally disconnecting but also reduces the danger of accidental self-sticking when used for patients with highly contagious diseases such as AIDS and hepatitis-B.

By the end of this year, the revenues of the privately held company will total $700,000, said Lopez, who believes ICU will post $9 million in sales for 1987. He projected that the High Risk needle would account for about 30% of that sales figure.

Lopez, who holds about 81% of ICU’s stock, said he will probably take the company public next year. Although he declined to estimate ICU’s potential market value, Lopez said its current book value is about $7 million. He said he is moving the company to a larger facility in Mission Viejo this month.

Although the danger of contracting AIDS from accidental needle sticks probably is overstated, the overwhelming fear many people have of the disease is a powerful selling tool, said Saundra Woodruff, marketing research analyst for Biomedical Business International magazine.

“There is an awful lot of concern over AIDS, and all products which prevent the spread of AIDS, including rubber gloves, are selling well,” said Woodruff, who added that as far as she knows, ICU is the first company to market a stick-proof needle.

However, because the danger of getting AIDS is small and a vaccine exists for hepatitis-B, some hospitals may see the needle as an unnecessary expense, Gerberding of San Francisco General suggested.

Still, “if they can make it cheap and it’s not an inconvenience to use and it works, it sounds like it would provide an extra measure of protection,” she said.