Dgimed Ortho Looking to Raise Funds

According to documents recently filed with U.S. Securities and Exchange Commission, Dgimed Ortho Inc. is trying to raise $2 million from the sale of equity and warrants. Dgimed is an orthopedic startup, based in Minnetonka, Minn.

So far, the firm has raised $550,000.

The company has developed a nail and drill system—Distalock—that the firm’s leadership claims will allow orthopedic surgeons to quickly and accurately insert locking screws used to stabilize rod-like implants in patients suffering from long bone fractures.

Dgimed received 510(k) clearance from the U.S. Food and Drug Administration in May for the Distalock Titanium Femoral Intramedullary Nail system. In November last year, the company also received clearance on the Distalock drill system with a stainless steel femoral IM nail.

In addition to the speedy placement of the locking screws, Dgimed officials claim the system can improve healthcare costs by reducing or eliminating the use of x-ray required with standard techniques. As a result, procedure time may be significantly reduced, lowering surgery facility and staff costs.

“There is a growing awareness of occupational exposure to radiation in medicine, and it is widely recognized that standard distal targeting techniques are a significant contributor to the exposure of radiation to the orthopedic surgeon,” said Phil Smith, the company’s president and CEO. “Our system can reduce this exposure and positively impact the safety of the surgeon, operating room staff and the patient.”

The Distalock drill was invented by Ramon Gustilo, M.D., of the Excelen Center for Bone & Joint Research and Education, a non-profit research and training facility in Minneapolis, Minn. Gustilo is a former professor of orthopedic surgery at the University of Minnesota, and was a founding member and the first president of the Orthopaedic Trauma Association. Dan Gladney, a healthcare partner at investment firm Norwest Equity Partners, founded Dgimed in 2008. He serves as Dgimed’s chairman.