As chief executive officer of Replication Medical, I am proud that our broad portfolio of implantable medical devices is providing groundbreaking treatment options in a broad range of markets, including spine, orthopedics, neuro, and vascular surgery. I am also proud that we develop and manufacture these products at our headquarters in Cranbury, New Jersey.
But in late 2009, our company was in trouble. With revenues totaling just $9,000 for the year, we were quickly running out of cash. Because of Pennsylvania’s close proximity and our existing relationships with researchers in that state, I very seriously considered moving Replication Medical out of New Jersey.
Why are we still here? The state’s Technology Business Tax Certificate Transfer (NOL) Program.
This innovative program that is unique to New Jersey allowed us to sell our net operating losses and receive $750,000 in 2010. This vital injection of cash kept us in business and kept us in New Jersey.
Today we are projecting approximately $1 million in revenue for 2011 and expect to reach profitability by 2012. Our success can be attributed to our proprietary hydrogel platform technology, our highly-skilled and dedicated team of employees, the support of our investors like Princeton-based Cardinal Health Partners, and New Jersey’s NOL Program. We could have closed up shop and headed to the Keystone State; instead, we took advantage of one of New Jersey’s most essential incentive programs for our industry and we are thriving as a result.
By restoring the full allocation of $60 million to the program for 2012, Governor Chris Christie and the Legislature have made clear that they understand the importance of supporting New Jersey’s emerging technology and biotechnology companies. The Garden State has long been a hotbed of innovation, and companies like Replication Medical offer the promise of revolutionary technologies that enhance and save lives; rewarding partnerships with New Jersey’s research universities that facilitate collaboration and encourage the rapid transfer of discoveries from the laboratory to the marketplace; new, high-paying jobs that provide stability to our state; and the kind of private investment that fuels the growth of New Jersey’s economy.
While Replication Medical has largely focused on spine surgery-related products, including the EnGuard protective cover for spinal blood vessels, the underlying technology is a product engine with the potential to have significant impact on virtually any clinical arena. We are excited about the opportunities that await us and we know that our location in New Jersey is an essential part of our continued success.
Prewett is CEO of Replication Medical Inc., 7 Clarke Drive, Cranbury. 609-860-0330.
