Financing to expand Franklin firm’s sales force
A $4 million round of equity financing has put eight more Arthrosurface Inc. direct salesmen in doctors’ offices this year.
The Franklin-based company develops and sells implants for major joints. The implants are designed for people who may be in pain, but do not need full joint replacement surgery. The new round of funding was achieved through the sale of preferred stock and was led by Boston Millennia Partners and other private investors.
Boston Millennia is a venture capital firm that specializes in health care, life sciences, telecommunications and IT companies.
New And Improved
To date, Arthrosurface – which has 30 employees – has raised about $31 million. In the four years it’s offered its products commercially, 7,000 have been implanted.
The company’s devices are manufactured in Stoughton by sister company STD Med Inc.
Company CFO Anthony Moretti said the new funding would allow Arthrosurface to launch new products. Also, the company expects to expand its sales force by hiring what it calls “clinical specialists” who sell directly to doctors and hospitals.
The other portion of Arthrosurface’s sales force is made up of regional managers, Moretti said. Those managers sell to doctors and hospitals, but are also responsible for managing the company’s distribution network. Moretti said the salesmen Arthrosurface intends to hire can sell “without the distraction of managing distributors.”
Pat Fortune, partner with Boston Millennia, said Arthrosurface is not currently profitable, but expects to be within the next 20 months.
“What’s more important at this stage is to grow it, expand its offerings and expand the selling presence,” Fortune said.  Â
