OrthoAccel Technologies Acquired By Houston-Based Venture Developement Company
Five recent UIC MBA graduates whose class project resulted in a successful start-up business venture have signed a merger agreement with SimplexityMD, a Houston-based new venture development company with a focus on medical device technology.
Kirk Purcell (MBA, 06), Matthew Christian (MBA, 06), Anna Lisa Somera (MBA/MPH, 06), Colin James (MBA/MPH, 06) and Mark Kwatia (MBA, 05) co-founded OrthoAccel Technologies Inc., a company dedicated to the commercialization of a revolutionary disruptive orthodontic technology which cuts the treatment time for braces in half.
They were among the first teams of students to participate in a pilot entrepreneurship class at UIC, which gives students the opportunity to develop working business plans based on university-licensed technology. Selecting from a portfolio of product concepts presented through the UIC Office of Technology Management, the OrthoAccel team chose to collaborate on the Celerect 1000 device, developed by Dr. Jeremy Mao .
Their start-up venture was among those presented at the UIC Concept2Venture business plan competition in December of 2005. After taking second place in the C2V competition, the OrthoAccel team continued to present and accumulate awards at national competitions, including the 2006 Rice Business Plan Competition, where they won the Conley Rose Intellectual Property Powerhouse Award and the Houston Business Journal Yaffe | Deutser Sales and Marketing Award . The exposure generated from the competition at Rice eventually led to negotiations with SimplexityMD and the subsequent merger agreement, announced February 2, 2007.
SimplexityMD will provide the financial, management and marketing resources required to bring the Celerect 1000 device technology to market . The Celerect 1000 uses the application of cyclic forces to move teeth in bone at twice the rate of traditional orthodontics. The product is a removable device that fits inside the mouth, similar to a retainer, and attaches to any orthodontic archwire. It is designed to complement all traditional orthodontia treatments and technologies but not to replace them. The device is expected to be commercially available in 2009.
Christopher Wasden, Simplexity MD chairman and CEO, has assumed the role of OrthoAccel CEO from Kirk Purcell, who will continue his involvement as a member of the company's board of directors.
Notes Purcell, "This is the kind of outcome every entrepreneur hopes for - to actually see a business concept become reality and know that others will benefit from the commercialization of that technology. It would not have been possible without the opportunity presented to us through the UIC entrepreneurship programs and the continued guidance, encouragement and contacts provided to us through Professor Rod Shrader and the Liautaud Graduate School of Business."
As compensation, the students received an undisclosed cash payment and equity in OrthoAccel. UIC will receive royalties from sales of the product.
