Hale Therapeutics

In 2020, people spent more than $40 billion trying to quit smoking.

Hale Therapeutics might be the solution they’re looking for.

This company has developed a medical vaporizer that weans users off of nicotine. Other solutions like gum or “the patch” try and curb addiction to nicotine drastically. Hale’s device, in contrast, curbs the addiction gradually, minimizing withdrawal symptoms and giving users a better chance at success.

Hale has already raised nearly $2 million from multiple venture capital firms. These include Village Global — backed by Mark Zuckerberg, Jeff Bezos, and Bill Gates — The Venture Collective, Ben Franklin Technology Partners, Backstage Capital, and Monozukuri Ventures.

Its key advisors include Dr. Thomas Brandon, Chairman of the Moffitt Cancer Center Department of Health Outcomes and Behavior - Tobacco Addiction; and Dr. Seth Goldenberg, Vice President of Veeva, a $35 billion producer of medical devices and applications.

And the company has filed three patents for its device and smoking-cessation apparatus.

Notably, preclinical testing of its device has shown up to 99% reduction in estimated lifetime cancer risk, a key factor in earning regulatory approval. Hale has already met with the FDA and Medicines and Healthcare products Regulatory Agency (UK’s version of the FDA), and is aiming to receive approval within 24 months.

As mentioned, people spend billions every year trying to quit smoking. Globally, the Nicotine Replacement Therapy market is expected to reach $150 billion by 2028.

Nicorette, makers of anti-smoking remedies, holds more than 46% of the anti-smoking gum market share in the U.S., a $1.5 billion sector. And Chantix, a pill offered by Pfizer aimed at helping smokers quit, generated $919 million in sales in 2020.

The trouble is, most of these products aren’t effective. Research shows that nicotine patches have a 94% failure rate.

They’ve also produced adverse side effects that have led to product recalls. In 2020, a Healthline article headline read “Pfizer Recalls Anti-Smoking Drug Chantix Over Cancer Concerns.”

Hale believes current “solutions” on the market don’t work for a few reasons:

First, they don’t mimic smoking behavior. Second, they don’t deliver nicotine doses as rapidly as inhaling does. And third, they don’t reduce the nicotine dosage continuously.

This last reason is critical to success, Hale believes. As you learned, this gradual reduction of nicotine is the key to the company’s vaporizer.

A patch from NicoDerm, for example, one of the most popular anti-smoking remedies, provides users with a 100% dose of nicotine for the first 42 days. Then, it immediately drops to a 50% dosage. For many people, that’s too drastic.

Hale’s vaporizer, meanwhile, provides a 100% dose of nicotine for the first 56 days, then drops the dosage by a percentage point every two days. This makes the weaning process easier to handle and makes it more likely the user will stick with the solution and achieve success.

While reducing the delivery of nicotine, Hale’s vaporizer also administers increased dosages of its drug-free formulation. This enables users to enjoy a consistent “smoking” experience the entire time.

Complementing this vaporizer is Hale’s mobile app, designed to help users face the psychological challenges of quitting smoking. The app tracks progress and provides digital therapy support, ensuring users don’t have to go through quitting alone.

Hale’s solution could soon be in high demand. In a recent study, 98% of people said they’d like an electronic-cigarette-type device that could gradually reduce their nicotine intake. And 90% said they would try an FDA-approved e-cigarette that helps them quit.

Hale aims to receive FDA approval in 2024, after which it will bring its product to market.

Once available, it will retail for $50, and monthly subscriptions will be available for between $20 and $100. The subscriptions will provide access to the mobile app, additional capsules for the vaporizer, and digital therapy resources.

Team Background

Devin Serago - Co-Founder & COO

Devin is a serial entrepreneur with extensive experience working alongside his co-founder Josh Israel.

Most recently, Devin co-founded Papr and Thrill Group. Before that, he co-founded Plan a Drink, a social networking startup that completed the StartEngine accelerator.

Earlier, he was an accountant with The Reinvestment Fund, a Philadelphia-based financial services company. He started his career as an accountant with Sebak and Monner Associates.

Devin earned a Bachelor’s degree Business Administration from Monmouth University.

Josh Israel - Co-Founder & CEO

Josh handles Hale’s company vision and product strategy.

Prior to starting the company, he co-founded Papr, a company focused on increasing environmentally sustainability by reducing paper waste in large enterprises. Before that, he co-founded Thrill Group, a portfolio of online dating services targeting those in India. Thrill Group was acquired in 2016 by Shaadi.com, a larger competitor.

Josh began his career with A.M. Best Company, a financial services business. He studied Management and Labor Relations at Rutgers University.

Co-Investors

Village Global

A VC fund investing in early-stage startups.

Ben Franklin Technology Partners

An economic development program providing funding and networking to early-stage tech companies. Portfolio includes Biomeme (bio-tech company) and MyDealerOnline (online car purchasing platform).

Backstage Capital

Venture capital firm investing in early-stage companies led by women, people of color, and LGBT founders.

Monozukuri Ventures

A Japanese venture capital firm investing in early-stage startups.

The Venture Collective

A VC firm investing in early-stage startups.