Constantine Zotos (left) and Mitchell Webber pivoted their coffee business toward hand sanitizer manufacturing amid the pandemic. Today, the company has around 60 employees and produces 15,000 gallons of hand sanitizer per day. Photo courtesy of Modern Chemical

Houstonians' workday routines look much different today than they did seven months ago. With a large percentage of people working from home, office rituals have come to a halt and few habits have been immune to change — including our coffee consumption.

In early March, Constantine Zotos and Mitchell Webber already knew this didn't mean good things for their local nitro coffee company, Recharge Brewing Co. Though the brand had grown steadily over the better course of two years, the duo had focused their business on installing and supplying their nitro coffee taps to two of the most taboo markets at the time: office spaces and restaurants.The duo aptly predicted that the demand for their product would soon dry up and quickly shifted their operations to focus on a product that was considered a necessity: hand sanitizer.

To get started, the young entrepreneurs and their small team of six began cold calling down a list of Purell distributors they found online. They soon found that many businesses could hardly keep the product in stock.

"They asked us if they could fly a jet down to pick up the hand sanitizer themselves," Zottos says of one distributor. "I told them not to get ahead of themselves, but it just speaks to the sense of urgency everyone had."

The team studied up on the basic ingredients of hand sanitizer to make the liquid, alcohol-based form that infiltrated the market in the first few weeks of the pandemic. At the time there was such a rush for the product, and such a low supply of the material needed to make it, that the team resorted to selling the product without traditional pump tops or plastic caps. Instead they used the slow release plastic pourers that are often used on liquor bottles.

Still, they were focused on doing it right. In addition to the long hours spend to get the product out the door, Zotos and Webber took special care to ensure that their sanitizer met all FDA and EPA requirements by working with consultants and lawyers, as well as reading up on all the pertinent documents and literature between sleeping shifts and time on the shop floor.

"We took the stance that we would rather rush toward compliance rather than run from it," Zotos says.

It didn't seem to slow down the demand. One week in they formed Modern Chemical, and by the middle of the month the company was fulfilling substantial orders with a team of 40 employees. By the summer, Modern Chemical released a gel-based, FDA-registered sanitizer that got them in with giant B2B clients, such as the Massachusetts Bay Transit Authority, Jefferson Parish School District, and recently the City of Austin.

The pair agrees that their background with Recharge gave them a leg up in the beginning.

"Knowing the pumps and hoses and all the stuff you really need to run a bottle facility and a hand sanitizer facility, we already had," Webber says. "On top of that when all this started, there were some long days and long nights, but being in the nitro coffee business, we were used to long hours. It prepared us for this huge push for the drastic demand that needed to be filled."

Location and timing also played a huge role in their success, Zotos adds. "When the pandemic struck we were able to bring on a lot of people who are extraordinarily talented throughout the company. If we weren't hiring in the pandemic environment like this I think we would be hard pressed to find people as talented as we did as quickly as we did," he says. "And Houston really played a big part in that."

Today, the company of about 60 employees is producing about 15,000 gallons of hand sanitizer per day and is in the process of launching disinfectant wipes and spray. They recently moved all of the Modern Chemical operations into a new and improved facility off Air Tec and Interstate 45 that will allow for more efficient packaging and loading of products and — in another pivot — are even offering custom labeling, scenting and color dyes, plus specialty dispensing stands for their product.

"Neither of us have a chemical background and we are not ignorant to that. But we know how the equipment works from an operational side of things and if we can make the packaging look the best. If we can package the most for the best price then people are going to want to buy it," Zotos says. "Instead of taking the let's do everything route, we found our niche in the chemical supply chain, which is packaging."

And as Modern Chemical continues to settle into its new space and eventually a post-pandemic market, Zotos and Webber plan to revisit and revamp Recharge Brewing with the lessons they've learned. The duo plans to use their original facilities to help other small business owners launch and produce beverage brands of their own by early 2021.

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Houston startup raises $6M to scale home-based healthcare platform

fresh funding

As healthcare systems race to expand care beyond hospitals and into the home, investors are placing bigger bets on the infrastructure needed to make that shift possible.

This month, Rosarium Health announced it has raised $6 million in seed funding led by Kalos Ventures, with participation from ResilienceVC, Rock Health Capital, Symphonic Capital, Black Tech Nations Ventures and others.

The investment will help the Houston-based startup continue to build its platform, which features a national network of 800-plus clinicians and 3,000-plus contractors to coordinate home accessibility upgrades and modifications for seniors and people living with disabilities.

For founder and CEO Cameron Carter, the company’s mission grew out of firsthand caregiving experiences.

“From my own personal caregiving experiences, I realized that the benefits exist on paper, but not in reality,” Carter said in a news release. “Families are being left to figure out the paperwork and installations all on their own, which shouldn’t be how this works.”

While Medicare Advantage and Medicaid plans have expanded coverage for home-based services and accessibility modifications, the logistics behind delivering those services often remain fragmented.

Rosarium’s platform coordinates the entire process, from clinical assessments and referrals to contractor management, documentation, reimbursement and installation.

“A clinician can document that a home isn’t safe and a plan can approve a benefit, but there’s no one that’s responsible for making sure the work actually gets done,” Carter says. “We built the missing piece.”

The company was founded in 2021 as Rose Health and was a 2023 participant in the Texas Medical Center’s Accelerator for HealthTech program. It has scaled quickly, building a network of more than 800 clinicians and 3,000 contractors across 34 states.

Rosarium is currently in-network for 1.2 million Medicare and Medicaid lives, with projected coverage expected to reach nearly 4 million by the end of the year, according to the release.

“We’re excited to back Cameron because he and the team at Rosarium are building the infrastructure healthcare needs right now to make the home a safe and comfortable place of care,” Kate Ballinger, investor at Kalos Ventures, added in the release.

As part of the recent investment, Ballinger will join Rosarium’s board of directors.

With eyes on the future, Rosarium plans to grow its partnerships with Medicaid and Medicare Advantage plans, including CalViva and Community Health Plan of Imperial Valley, strengthening its presence in California while expanding access to underserved communities.

Additionally, Carter predicts that home-based healthcare will be part of a broader transformation happening across the industry.

“There’s a growing recognition that health outcomes are shaped by what happens in the home,” he said in the release. “The future of healthcare isn’t just treating people after something goes wrong. It’s creating environments that help prevent those problems in the first place.”

Houston business mogul Tilman Fertitta acquires Caesars in $17.6B deal

Money Moves

Houston billionaire Tilman Fertitta may currently be serving as America’s ambassador to Italy, but his company is as busy as ever. Fresh off its move to revive the Houston Comets WNBA franchise, his company, Fertitta Entertainment, has announced a $17.6 billion deal to acquire Caesars Entertainment, Inc.

Speculation about the deal has been circulating since at least March, according to various media reports. The deal combines Fertitta’s well-known Golden Nugget casino brand with all of the properties in the Caesars’ portfolio, including Las Vegas hotels Caesars Palace, Harrah's, Paris Las Vegas, Planet Hollywood, Horseshoe, The LINQ Hotel, Flamingo, and The Cromwell.

Overall, the combined company will include 60 domestic casino resorts and gaming facilities; online gaming including sports betting, iCasino, and Caesar’s online poker platform; retail sports betting at over 200 third-party locations through the William Hill brand; and over 550 Fertitta Entertainment outlets, including more than 450 Landry's full-service restaurants across America. The companies will combine their loyalty programs, Caesars Rewards, Golden Nugget's 24 Karat Select Club, and Landry's Select Club.

The terms will see Caesars’ shareholders receive $31 per share. Fertitta Entertainment will also acquire approximately $11.9 billion of Caesars' outstanding debt.

The transaction will be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars' debt, and new committed debt financing arranged by a group consisting of 10 banks. It is subject to approval by Caesars’ shareholders and government regulators.

Fertitta Entertainment is the Houston-based company behind a diverse array of hospitality businesses, including The Golden Nugget, The Post Oak Hotel, River Oaks District, the Kemah Boardwalk, and Houston’s Downtown Aquarium.

It also operates a number of prominent restaurant brands, including Mastro's Restaurants, Del Frisco's Double Eagle Steakhouse, Morton's The Steakhouse, The Palm, McCormick & Schmick's, Landry's Seafood House, The Oceanaire Seafood Room, and Saltgrass Steak House.

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This article first appeared on CultureMap.com.

4 Houston-area institutions get $8M for cancer research facilities

fighting cancer

Cancer research capabilities in the Houston area just got an $8 million boost.

On Wednesday, May 20, the Cancer Prevention and Research Institute of Texas (CPRIT) awarded $8 million in grants to institutions in Houston and Bryan for the creation or expansion of so-called “core” cancer research facilities.

“Core facilities provide shared access to advanced technology, equipment, and scientific expertise that may not be available at every institution,” CPRIT says. “These core facilities are vital to not only cancer research but also to the study of diseases beyond cancer.”

Houston-area recipients of these $2 million grants are:

  • A facility at the University of Texas Health Science Center for preclinical support of cancer researchers in Texas to evaluate new safe, effective drugs and drug combinations.
  • The Accelerator for Cancer Therapeutics, operated by Houston’s Texas Medical Center Foundation. The accelerator helps researchers and startups move innovative cancer treatments from the lab to clinical trials.
  • Rice University’s Genetic Design & Engineering Center in Houston. The center enables researchers to collaborate on studies of custom DNA for cancer treatment.
  • A facility at the Texas A&M University System’s Health Science Center in Bryan that aims to speed up the development of cancer therapies.

In addition to those grants, the University of Texas M.D. Anderson Cancer Center, Methodist Hospital Research Institute, Baylor College of Medicine, and Rice University shared $21 million to recruit cancer researchers from other institutions.

The largest of those grants—totalling $4 million—went to M.D. Anderson for the recruitment of renowned cancer researcher Andre Nussenzweig from the National Institutes of Health. His research focuses on how DNA damage and faulty DNA repairs lead to cancer.

Here are the totals for the other CPRIT grants awarded in the Houston area:

  • $12.8 million to Houston-based Indapta Therapeutics for the development of an off-the-shelf therapy that naturally kills cancer cells, combined with an immunity-targeting agent for a type of leukemia.
  • $11.1 million to MD Anderson, including $5 million for a statewide platform to improve long-term health outcomes in adolescents and young adults who survived cancer.
  • $8.4 million to Baylor College of Medicine, including $4.8 million for two training programs for cancer researchers.
  • $6.25 million to UT Health Houston, including $4 million for a biomedical informatics and genomics training program for cancer researchers.
  • $4.4 million to the Texas A&M Health Science Center’s Houston campus, including $2.4 million for a cancer therapeutics training program.
  • $2.75 million to Rice, including $250,000 for a study of ovarian cancer.
  • $2 million to Houston-based March Biosciences for the development of a targeted therapy for treating T-cell lymphoma.
  • $1.15 million to the University of Houston, including $900,000 for a platform for detection of lung cancer.
  • $900,000 to Texas A&M in Bryan to conduct clinical drug trials in rural and underserved communities around the state.
  • $800,000 to Houston- and Israel-based Xerient Pharma for the development of an oral form of a cell-protecting drug called amifostine to protect the upper GI tract from radiation damage during pancreatic cancer treatment.
  • $659,000 to Missouri City-based OmniNano Pharmaceuticals for the development of a two-drug combination to treat the most common form of pancreatic cancer.
  • $250,000 to the University of Texas Medical Branch at Galveston for a novel therapeutic to prevent colitis-related colorectal cancer.