Joseph C. McGinley. M.D., Ph.D. is a highly accomplished musculoskeletal intervention and sports medicine physician with over 15 years of experience in the field. He holds a Bachelor’s and Master’s Degree in Mechanical Engineering and a Ph.D. in Physiology and an MD from Temple University. He completed both his residency and fellowship at Stanford University. Dr. McGinley became the founder and CEO of McGinley Orthopedics, a company that designs, develops, markets, and sells orthopedic medical devices.
We recently sat down with Dr. Joseph McGinley to ask him about his company, the industry’s future, and raising capital for a Medtech company today.
Q: Can you tell me a little about your experience, your company, and your company’s effect on patients and the Medtech space?
A: My background is originally in mechanical engineering and I then went on to obtain a medical degree and Ph.D.. Following that, I attended Stanford University for both my residency and fellowship in musculoskeletal radiology. After my fellowship, I transitioned into private practice in Casper, Wyoming, where I reside today. My passion for problem-solving and engineering inspired us to create our products. The idea was founded and conceptualized at a dinner meeting with colleagues when I was still in medical training. A surgeon was discussing a case about a teenager with a wrist injury. To repair it, a screw was inserted, and it inadvertently plunged the bone, subsequently tearing the tendon on the far side of the bone. He reported that due to the inaccuracies of the depth measuring process, surgeries may result in incorrect screw sizes. We knew if we placed sensor technology in the surgical tools, we could improve the surgical outcomes and reduce the occurrence of these all too frequent results.
The current standard of care when in orthopedic plate and screw surgeries is to manually measure depth and “feel” when to stop on the far side of the bone. This process is prone to errors that can be costly and impact patient outcomes. The IntelliSense Drill Technology® improves the level of care by putting sensors in the tools that simultaneously measures depth, telling the surgeon what size screw to use and has auto-stop features to help prevent plunging past the bone. It makes it easier for the surgeon to expedite the procedure and improve the patient’s care level. The IntelliSense Drill® has been on the market for 7 years and is currently being used in operating rooms across the country. As a company, we have continued to create products with the mission to improve the standard of care in orthopedic surgeries. Today our company boasts of over 137 patents in various stages of development.
Q: What excited you the most about this sector?
A: For me personally, it is all about making a difference in patient care. As a physician, we usually help patients on a one-on-one basis. Technology such as the IntelliSense Drill ® improves patient care and outcomes on a much larger scale impacting patient care worldwide. Many of us at some point may also find ourselves on the other side of that care. It is great to help provide a solution to enhance many lives globally.
Q: How do you see the upcoming LSI Medtech event having an impact on your company?
A: We’re excited to be back at LSI. Last year was our first time attending the meeting, and we met many interesting people in diverse business sectors. It made us think about our company, improve ideas, and how to best set up success. There are a lot of innovators at the conference and I have learned from their expertise. We will use the platform of LSI to reach a variety of unique investors that can help change the standard of orthopedic care and improve the quality of care given to patients with their investment. All our investors are part of our team, and we are looking to tap into the experience of those involved. We are also excited to have a platform to share and get the word out about our products. Because we are addressing a real need in orthopedics, we know our message and goals will resonate with many in attendance.
Q: Since you are using Regulation A+ for your next offering, how do you see that fundraising style impacting your company?
A: We are new to Regulation A+. This opportunity will give us access to a broad investor base and allow us to promote our products on a larger scale. We are excited to share our products with new investors through this platform. Reg A+ allows for us to raise capital without losing control of the company. It is an exciting time at McGinley Orthopedics. The influx of funding into our company will afford us the opportunity to grow and reach more patients with our technology. The funds will not only benefit our current technologies but allow us to bring to market numerous additional products in our pipeline.
Q: Why do you think education on the topic of Reg A+ plays such a vital role in expanding access to Medtech companies?
A: Until recently, I did not have a full understanding of Reg A+ and how it could help our company. I am excited to share what I have learned about its benefits to educate other companies about this approach. In the investment world, we are not used to a privately held company being able to solicit on a large scale. This approach levels the playing field while benefiting the company and the investor by eliminating the middleman. It has also opened doors to additional resources that I know would benefit other medtech companies.
Q: How do you see Reg A+ impacting the Medtech industry?
A: I think we are at the tip of the iceberg regarding Reg A+ in the Medtech industry. It gives companies the ability to access capital in an early stage a lot more easily. I think we will see an increase in adoption and a shift in private equity to Reg A+ in the future. You will see companies like ours reap the benefits, and it’s great for the entrepreneurial world.
Q: What advice would you give a young Medtech entrepreneur as they begin their journey through capital raising and building their company?
A: I would say it’s hard, and it requires dedication. If you want to be successful, you must think outside traditional approaches. Don’t eliminate any possibility and think of what works best for you. There is no easy path to success. We are an innovative company and sought unique ways to innovate while raising capital. We innovate with our products, innovate with our sales, and innovate with how we raise capital including this new approach with Reg A+. It will be hard work, but hard work is part of the journey. Try to get varying perspectives, understand the pros and cons, and do what is best for your company.
Regulation A Disclaimer
This communication may be deemed to be a solicitation of interest under Regulation A under the Securities Act of 1933, in which case the following apply:
- No money or other consideration is being solicited, and if sent in response, will not be accepted;
- No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is qualified, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date;
- A person’s indication of interest involves no obligation or commitment of any kind; and
- An offering statement, which would include a preliminary offering circular, has not yet been filed with the SEC.