The recent landmark acquisition of HistoSonics, a leader in focused ultrasound devices, is the most significant milestone in the evolution of the field to date—and a case study in how medical innovation works when government and private capital are combined.
HistoSonics successfully commercialized histotripsy – a technique that uses focused ultrasound to noninvasively liquify target tissue in the body without heat. The company’s Edison system has US Food and Drug Administration clearance to treat liver tumors and is now being tested in clinical trials to address kidney, prostate, and pancreatic tumors. In all, Edison has already been used to treat more than 2,000 patients at over 50 active centers worldwide—and that number is quickly increasing.
Its recent sale and status as a unicorn company (a startup valued at over $1 billion) positions HistoSonics as the North Star in the field of focused ultrasound. It will continue to improve the lives of countless patients and help guide future companies along the path to commercial success. The company will also create wealth for numerous investors and new jobs, thereby improving the economy.
Federal Funding Sparks Medical Innovation
Histotripsy was first discovered and researched at the University of Michigan by the late Charles Cain, PhD, and Zhen Xu, PhD, the Li Ka-Shing Endowed Professor of Biomedical Engineering and Professor of Radiology and Neurosurgery. That work was funded by ten independent R01 grants from the US National Institutes of Health (NIH), totaling more than $30 million. R01 grants are the standard independent research project grant awarded by NIH for health-related research and development.
Other philanthropic organizations, including the American Cancer Society, the Hartwell Foundation, and the Focused Ultrasound Foundation, also supported this early research.
Only after 20 years of federally supported research was the science ready for private investors to scale and commercialize.
Impact of Research Funding Cuts
Since January, the current US administration has terminated more than 800 research projects and cut billions in NIH funding for future studies. These decisions put the future success of innovative healthcare companies – like HistoSonics – at risk. Without early-stage investment from the government, transformative technologies rarely leave the laboratory, creating a significant missed opportunity for critical economic development. Most urgently, patients also lose access to potentially life-saving treatments.
Public funding lays the foundation for private sector growth. Erode that base, and we weaken America’s ability to lead in the life sciences and compete in the global economy. And we risk lives.