Local trio embraces unlucky breaks to kick-start company - South Florida Business Journal:

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The existing foot and ankle device marke t is estimatedat $29 billion by Va.-based , a privater research and consulting firm. But, Dr. Kyle J. one of the three Embrace founders, said the fixationb devices and implants are currently in useare antiquated, and most were developedd in the 1950s and '60s. "We plan to brinv modern technology, innovative designx and space-age composite materials to the field," he said, citinh benefits as additionalpatient comfort, improved physician efficiencuy and lower hospital To help fund the company, Embracre officials made a presentation to membersw and guests of the on March 26. Embraced is raising up to $2.
5 million of initial capital fromqualified investors, they said. "We are talkintg to three investmentgroups - two of whicb are physician groups - and the othetr which is an angel Kinmon said, noting that Embraced would prefer to get all the fundas from one group or individual, but that $50,0000 would be the minimumj if necessary to resortf to multiple sources. Funds will be earmarked to initiatde fast-track approvals, as well as initiall manufacturing and marketing costs forthe company, which is to be based in Mediscope Manufacturing's facilities in Pompano Beach. Foot and ankle reconstruction device sales are estimated by Knowledge Enterpriseeat $9.
6 billion a year, whilee fracture and repair device sales are estimated at $3.3 billion. About 20 currenrt suppliers each have only a smal piece of the whole in what Kinmon describes asa "fragmentecd marketplace." "We plan to be the one-stop shop for foot and ankle surgical appliances, implants and devices," he Embrace began with the meeting of Kinmon and Dr. Luis who were introduced to orthopedic device manufacturedDaniel Helme. Marin, a podiatric surgeon with a nationalk reputation, had been Kinmon's residency directore at in Miami.
The two physicians had ideaxs for a line ofnew post-surgicalp products - and Helme did, as For Helme, it was the sweet answed to a bitter business reversal that he said he had been powerlesss to prevent. "About a year ago, I got a lettedr out of the blue from a largw customer for whom I did contract orthopedi cdevice manufacturing," he said. "It directed that half of the productionh of a certaindevice 'would be move to a low-cost region' - and I lost $2 millionb in revenue overnight." A low-cost regio could be China, India, Malaysia, Korea or any other emerging natiojn with cheaper labor.
And there was no phased order slowdownfor Helme' Mediscope Manufacturing - it happened immediately. Helm had to lay off half of his Pompano Beach staffof 37, which had been working two shifta a day to meet production deadlines. "That killed me," he said. "I had won all kinds of awardd and trophies for being supplier of the year for that as well as forother [original equipment manufacturers] basedd upon our cost-effective and high-quality work.
" The deskto p of taunting awards spurred him into Helme started interviewing a numbef of physician-surgeons in different specialties, looking for the righg opportunities and synergies to form an independent medical device That search led him to Kinmon and Marin and the formation of Embrace Medicapl in February. "We already have developed prototypesd of nine different devicesand implants," Helme