Massachusetts firm opens local distribution center

The Commercial Appeal
November 5, 2007
By Daniel Connolly

Massachusetts-based Millstone Medical Outsourcing makes its money by handling distribution and other tasks for companies that make surgical implants -- but it's hard to ship packages from the northeast corner of the nation.

Millstone's recent decision to open a distribution center in Memphis shows how the city's logistics infrastructure can help attract jobs in the medical device industry, a sector that's already strong in Memphis but which local leaders want to expand.

The company's newly leased 105,000 square-foot facility in Capleville allows it to take advantage of late pickup times by FedEx Corp. and ensure that products will arrive in time for surgeries.

"It allows us to better serve the West Coast, being able to ship later and later in the day," said Kelly Lucenti, Millstone's president.

Lucenti said the privately held company is making its money by picking up work that other companies can't do or don't want to do.

He said that as large medical device companies experience strong growth, they're having a hard time keeping up with demand.

"So they start outsourcing more and more," he said.

Millstone also offers packages of services to small startup companies that lack facilities.

Lucenti wouldn't name the firm's clients, but said Millstone specializes in services that aren't related to discovering and testing new products.

For instance, Millstone is handling the complex process of shipping out surgical kits, receiving used kits back, and sterilizing the unused instruments before shipping them out again.

The company also does specialized jobs such as filling syringes and vials, and it also helps firms resell older but still useable equipment in other countries.

Millstone isn't the first medical device company to relocate to Memphis because of its strong transportation infrastructure.

Last year, San Diego-based NuVasive, Inc. set up a facility in Memphis to handle shipping and sterilization for its spinal surgery kits.

And strong distribution possibilities helped attract Belgium-based TiGenix, which is working with Cognate BioServices Inc. of Baltimore to create treatments for damaged and diseased joints, said Mike Demster, the chamber's vice president for biomedical and technology business development.

Demster also said the presence in Memphis of a company like Millstone means that startup medical device firms can have infrastructure to go to for support.

"If I'm starting a small medical device company, I can outsource a lot of functions to Millstone," he said.

Lucenti said Millstone currently has just 10 workers here, but said that number could expand to as many as 100 over time.

The Millstone case also shows the power of small medical device firms to create jobs, said Leigh Anne Downes, the chamber's director of life science business development.

"In my estimation, every job counts, whether a company coming to Memphis brings two jobs or 200 jobs," she said.

-- Daniel Connolly: 529-5296

More info:

Millstone Medical Outsourcing
Top person: CEO Chris Ramsden
Headquarters: Fall River, Mass.
Local address: 4481 Pleasant Hill Rd., Suite 110
Total employees: About 100
Memphis employees: 10

The Memphis Regional Chamber can assist companies considering expansions or relocations to Memphis. To learn more, contact the Chamber at 543-3500.