Orthopedic implant startup hopes to find market share with lower-cost proven technology (MedCityNews)
NovoSource Inc. doesn’t claim to have the next cutting edge advancement in orthopedic devices. Instead, it’s one of a number of small orthopedic device firms looking to cut costs from the process of developing and selling existing orthopedic implants.
The startup makes orthopedic implants using technology that’s been around for years and has produced clinical trial results. Then it outsources its manufacturing and sells directly to hospitals and surgeons. “We’re not investing in capital equipment,” said co-founder and Chairman Harold Linville. “We are outsourcing our manufacturing to suppliers that have 25 to 30 years of experience in supplying to other companies around the world.”
Its first product, a total knee replacement, is under 510(k) review by the FDA and should launch toward the end of the first quarter of 2013, Linville said, noting that distributors are already in place. A hip implant should launch shortly thereafter.
The company has raised nearly all of the $4 million it disclosed in a SEC filing last week and is on its second offering, he said.
Linville was previously ...
