Hartford Business Journal

HARTFORDBUSINESS.COM | APRIL 1, 2024 15 STARTUPS, TECHNOLOGY & INNOVATION All jobs are posted internally first, and the company leans heavily on training lower-skilled staff to grow a highly skilled workforce. "It's very family-oriented here," said 30-year-old Waterbury resident Abby Lopez, a training effectiveness supervisor. "A lot of friends and family work here. Usually, people are referred here, and it works very well." Lopez said she was recruited by her sister. She helped steer two friends to the company. They've recruited their sisters. Growing sales Northeast Scientific has FDA approval to reprocess seven different catheter devices, in various sizes, for a total of 15 varieties. Each must be cleaned of human blood and tissue, sterilized and fed through human body models to simulate use and functionality. When necessary, Northeast Scientific might replace portions of a catheter, such as a damaged tip. The company uses 3,000 gallons of ionized water daily for its cleaning process. Most catheters have a protec- tive coating reapplied. It uses ethylene oxide gas in its sterilization process. For end users, reprocessed catheters cost between $150 to $500, rather than $300 to $1,000 for unused devices. It can take up to two years of testing and presentation for each FDA clearance, Allmendinger said. "They work equivalently well, there is no difference" compared to new and unused catheters, said Dr. Harold Mast, who buys Northeast Scien- tific products for his interventional radiology practice in New Jersey. Mast said he reduces costs by about 40% using Northeast Scien- tific products. "When I call them, generally the catheters get shipped the same day, so I get them the next day," Mast said. "They have great customer service, without a doubt." Northeast Scientific's payroll hovered around three to five employees until 2012, when the company began to ramp-up produc- tion and sales following its first FDA clearance, which allowed for the reuse of a central venous catheter. These are long polymer tubes used to diagnose and treat damaged arteries. Northeast Scientific sold about 10,000 units in 2012, and 30,000 the following year. Today, the company sells not only reconditioned cathe- ters, but also a device it manufac- tures to move the esophagus during heart ablation surgery. Northeast Scientific has sold more than 100,000 units in each of the past five years, using Federal Express to ship to customers in every state. It's on track to move more than 140,000 units this year, Allmendinger said. And he expects sales to quickly climb to more than 200,000 units. He put the company's current gross annual revenue at $20 million. Northeast Scientific is contin- ually looking to add new devices to its list of approved recyclables. It's currently working on four new products. It's also looking to grow its customer base, particu- larly outpatient surgical centers and hospitals. "We continue to see more and more doctors getting on the band- wagon because it's the right thing to do," Allmendinger said. Waterbury Mayor Paul Pernerewski said Northeast Scientific is exactly the type of well-run, innovative manufacturer the city is hoping to attract. "They are an up-and-coming company, a very progressive company," Pernerewski said. "It's the sort of out-of-the-box thinking we are looking for here, to get businesses into Waterbury." Northeast Scientific employs about 78 people, with wages starting at $17 to $18 for recently hired production staff. Northeast Scientific's pivot into the pacemaker market is an altruistic endeavor By Michael Puffer mpuffer@hartfordbusiness.com W hile Northeast Scientific's main focus is the catheter business, it has branched out to another medical device segment for altruistic purposes. For the past seven years, the Waterbury-based company has worked with the University of Michigan and various charitable groups to recycle pacemakers donated by families, funeral homes and hospitals for use in poorer countries. Working free of charge, Northeast Scientific has recycled thousands of pacemakers that have ended up inside patients in Sierra Leone, Venezuela, Haiti, Nigeria and elsewhere. Northeast Scientific CEO Craig Allmendinger said the company moves 600 to 700 pacemakers a year. Using company resources, Northeast Scientific Project Manager Chris Gilman prepares pacemakers during company time and off hours, occasionally enlisting other staff to help. "It feels good to do it because you know you are changing someone's life," Allmendinger said. Northeast Scientific CEO Craig Allmendinger holds a recycled pacemaker. HBJ PHOTO | STEVE LASCHEVER JA STOCK MARKET CHALLENGE THANK YOU TO OUR GENEROUS SPONSORS! Presenting Sponsor Investment Sponsors Penny Stock Sponsors Portfolio Sponsors Technology Sponsor Additional Sponsors Awards & Prize Sponsor Student Giveaway Sponsor Ernst & Young Charles Schwab Central Connecticut State University Your paragraph text Your paragraph text

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