Medical firm marks 10 years of success

By JOHN NOLAN
February 13, 2006 - Foster's Daily

ROCHESTER NH — A local company that manufactures medical devices celebrated 10 successful years in business with an open house on Jan. 26.

Phase II Medical Manufacturing, which started life in a Rollinsford Mill in 1995 with two employees, moved to a modern factory space in Rochester's Granite State Business Park in August of 2004. In doing so, it expanded its area from 7,500 square feet to 16,500 square feet, with room for further growth.

Today, the company employs over 35 people and expects to continue hiring in 2006.

The company was founded by three investors — Peter and Gary Prime, and Mark Newbert — and by Keith Palluch, who was experienced in the medical manufacturing field. Palluch ran the company for a couple of years, before handing the reins over to another member of the Prime family, Adam, who has been at the helm as president since 1997.

Phase II grew steadily in the early years, but experienced a dip in fortunes when a major customer dropped off the books. The company recovered, broadened its customer base, and in the past four years has experienced an annual growth rate of 65 percent. This far outstrips the U.S. medical device industry average of around 8 percent.

Adam Prime, whose degree is actually in geology rather than business or the medical field, said that most of Phase II's customers are medical device manufacturers who require specific components. While most of these manufacturers are in the Northeast, their products, including the made-in-Rochester components, are shipped around the world.

Phase II's forte is in working with start-up jobs that require a high level of quality and a lot of attention. The firm is ISO-9001 and ISO-13485 certified, the latter being the standard that covers medical devices.

Phase II now provides design, development, manufacturing, packaging, shipping, and sterilization services to its customers. The staff includes engineering and design staff (with more to be hired) and the products are produced, assembled and tested in stringently monitored "clean room" conditions, which include temperature, humidity and dust controls.

Product is shipped by road, and although located adjacent to Skyhaven Airport, the company has not yet had to avail itself of this facility.

In 2006, Adam Prime said that he plans a sales push, and to this end, Phase II is promoting its website, www.phaseiimed.com and has hired the services of Portsmouth-based Calypso Communications.

Among the local Rochester officials who attended the open house were Deputy Mayor Elaine Lauterborn and City Councilors Rick Healey, Sandra Keans and Ray Lundborn, along with Economic Development Specialist Karen Pollard.

"I was very impressed with the facility and with the work. The company is a nice addition to the community," said Keans, noting the friendliness of the company president and the employees. "It was almost like a family atmosphere," she added.