MedLogic Global Corporation will nearly double its staff by the end of the year, bringing its research and development group from North Carolina to Colorado Springs, and is projecting a 20-fold increase in sales in fiscal year 1997 over FY 1996, which ended June 30.
The 5-year-old biomedical company was poised to accomplish this plan when it received a substantial boost. A venture capital fund controlled by the Travelers Insurance Co. invested approximately $4 million in the local company. The single investment is more than the total capital MedLogic has worked with in its first five years.
MedLogic, which makes a skin strengthening adhesive marketed as SuperSkin®, was attractive to the Travelers because of, among other things, the company’s patent coverage of its technology, the potential of its markets, and the entrance in July into a market specifically related to women’s health issues.
"Patents are a real selling point to investors," said Nancy Reed, director of sales and marketing.
The company holds six patents, five of which are on SuperSkin alone. It has six patents pending and it will file four to six more by late fall, according to President and Chief Executive Officer Michael Byram. There are also two products currently undergoing Food and Drug Administration approval.
SuperSkin bonds with the skin to prevent friction and pressure ulcers (bed sores). Current markets include the prevention of bed sores in bedridden and wheelchair-bound individuals; protection from skin breakdown caused by moisture and friction in wearers of artificial limbs and braces; and the prevention of skin breakdown in women receiving radiation for breast cancer.
The cancer market is new to the company. Clinical trials from three hospitals have recently been completed with encouraging results, which will be released in approximately eight weeks. SuperSkin is designed to prevent the skin breakdown, which occurs in 35% to 40% of some 400,000 radiation therapy patients per year. The breakdowns are dangerous because they cause a need for a modification or cessation of treatments.
The product sells by word of mouth in 44 states, up from 14 last year. MedLogic hired two sales people in June and will hire four to six more across the country by fall. Customer service representatives are also needed. When the research and development group moves to the area by the end of the year, it will need polymer chemists, general chemists, and a vice president for research and development.