Medical device business veteran co-founds new Dayton venture


Harold Linville retired from Innovative Medical Device Solutions in 2011 after 34 years of service. But Linville is now quietly helping ramp up another local medical device provider, NovoSource Inc.

“I said, ‘Look we’ll have to raise a lot of money,’” Linville recalled telling his NovoSource co-founders early in the venture. The co-founders said, “Harold, you’ve got to lead it (the new company).”

Linville replied, “Well, if I have to lead it, it has to be in Dayton, because I’m in Dayton.”

The idea behind NovoSource is offering lower-cost options for quality orthopedic devices, particularly knee implants and hip products. The business will outsource manufacturing of these devices to Innovative’s Vandalia operation and a Michigan manufacturer, Orchid Orthopedics.

In a November filing with the U.S. Securities and Exchange Commission, NovoSource disclosed that it had raised nearly $4 million, much of it from Ohio and Dayton-area investors. A new round of financing has been opened as well.

Besides Linville, the principals include Jon May — a former Inland manager in Dayton — and T. Bradley Harris, former Upex Holdings chief executive.

The Dayton Development Coalition is supporting the business with a $1.1 million Entrepreneurial Signature Fund loan.

Linville expects Federal Drug Administration approval for its knee implant soon. A hip product produced by Orchid will be next. Distribution contracts are in place.

“NovoSource has a very exciting business model that strips out significant costs in health care and is already engaged with distributors to produce immediate sales,” said Scott Koorndyk, the coalition’s executive vice president of economic development and operations.

The knee product has an FDA “510K” classification, meaning it’s similar to products already on the market. The innovation comes at the lower cost NovoSource principals believe they can offer.

“There’s nothing new in orthopedic implants over the last 20 or 30 years,” Linville said in a recent interview at the company’s Entrepreneur Center offices.

One possible challenge to NovoSource’s business model is “slow uptake and skepticism from surgeons who are seeing good results from the products they have already,” said industry website orthostreams.com in a story on the company.

But the savings NovoSource envisions are substantial, according to the NovoSource website. A typical orthopedic practice could save $500,000 to $1 million a year.

“The end game, really, is we’re going to be the best value,” Linville said.


Reader Comments ...


Next Up in Business

New store pursues location in Bethel Township
New store pursues location in Bethel Township

Dollar General attempted to secure a spot in Bethel Twp. in 2015, but concerned residents halted the attempt. Now Dollar General is back, once again looking to build but this time along West National Road in Springfield. Residents originally did not support the building of a Dollar General store in the farmland area originally proposed due to concerns...
Clean audit issued for Clark County economic development nonprofit
Clean audit issued for Clark County economic development nonprofit

A recent report from the Ohio Auditor of State showed a clean audit after a review of the Community Improvement Corp. of Springfield-Clark County. Auditor of State Dave Yost’s office is responsible for auditing all public entities in Ohio. The CIC’s finances are audited annually and it’s been several years since any issues have been...
Chipotle food scare highlights issue that impacts thousands annually
Chipotle food scare highlights issue that impacts thousands annually

Chipotle is grappling with more cases of foodborne illness, an issue that causes one in six Americans to get sick annually after consuming contaminated foods or beverages. The company’s stock has taken a hit this week following foodborne illness issues at a restaurant in Virginia and a report of rodents scurrying around at one of their restaurants...
Chipotle food issues: Does your local restaurant have violations?
Chipotle food issues: Does your local restaurant have violations?

Chipotle’s stock has taken a hit this week following foodborne illness issues at a restaurant in Virginia and a report of rodents scurrying around one of their restaurants in Texas. Chipotle executives told Business Insider that the chain temporarily closed a restaurant in Sterling, Va., after a small number of customers reported symptoms like...
Air Force awards big contract to UDRI
Air Force awards big contract to UDRI

The University of Dayton Research Institute has received a seven-year, $43 million Air Force contract to develop nonmetal materials for airplanes, spacecraft and ground vehicles. Researchers at UDRI’s campus and at the Air Force Research Laboratory at Wright-Patterson Air Force Base will investigate adhesives, sealants, elastomers, textiles,...
More Stories