OrthoCor Medical kicked off sales last month for its first device: a knee wrap that uses heat and electromagnetic pulses to alleviate pain and swelling.
The product, called the OrthoCor Active Knee System, sells for about $200 and runs on a rechargeable battery and disposable, single-use heat "pods."
The Twin Cities company has been gearing up for sales since December, when the U.S. Food and Drug Administration approved the device for sale. In February, OrthoCor
disclosed plans to raise $1 million from investors to grow its sales and marketing force. CEO John Dinusson said in an interview last week that fundraising has since exceeded $1.5 million.
(OrthoCor was the first business certified under Minnesota's new angel investor tax credit program.)
While investors appear to be enthusiastic, insurers remain skeptical. Clinical data about the product's effectiveness is limited, which will hinder any efforts to win reimbursement from insurers. Instead, the company is counting on chiropractors to be the primary distribution channel for the device.
"We know that we have a huge patient population," says Dinusson. An estimated 26 million people in the United States suffer from knee pain, and many become less active instead of seeking treatments, says Dinusson. He hopes their product can change that trend.
OrthoCor has five employees, including inventor Kin-Joe Sham. The devices are manufactured at Sham's father's company in China, and Dinusson has been contracting independent sales reps. Several other products are in the pipeline, including devices for relieving wrist, ankle, elbow, and lower back pain.
Source: John Dinusson, OrthoCor Medical
Writer:
Dan Haugen