Crain's Detroit Business - 25th Anniversary Issue, May 3, 2010 - (Page E17)

May 3, 2010 CRAIN’S DETROIT BUSINESS Page E17 25 Companies to Watch: Health Care/Biotech HealthMedia still growing after investors’ big payday HealthMedia Location: Ann Arbor Local employees: 170 2009 revenue: More than $30 million Founded: 1998 by Victor Strecher and Rick Snyder ealthMedia, the Ann Arborbased poster child for how to spin off university technology and grow a new-economy business in Southeast Michigan, continues to add revenue and jobs since it was bought by Johnson & Johnson in October 2008. The parent company announced last fall that it was cutting 7 percent of its total workforce. But HealthMedia, a provider of online wellness programs and health resources that had continued to grow throughout the recession, was exempted. It was the company’s growth that caught Johnson & Johnson’s attention. In 2008, HealthMedia grew revenue 50 percent to about $23 million and added 60 employees, to about 150. And projections at the time of sale were for continued strong revenue growth in 2009. A stellar roster of customers didn’t hurt. In fact, one of them had been Johnson & Johnson. Others included Ace Hardware, HewlettPackard, Neiman Marcus, GlaxoSmithKline, Reader’s Digest, Xerox, Humana, Kaiser Permanente and Health Alliance Plan of Michigan. The company, now a business unit of Johnson & Johnson, added CEO: National search under way to replace Ted Dacko, who left on good terms in March to pursue other opportunities. Why it’s one to watch Struggling startup turned investor home run about 20 employees in 2009. Ted Dacko, the CEO credited with transforming HealthMedia from a struggling startup when he joined in 2000 to a prime acquisition target, left the company on H good terms in March to return to his roots and find another young company to grow. Johnson & Johnson does not discuss revenue and employee totals for its business units, but when Dacko Dacko left, he said the fact that HealthMedia had been spared what were generally companywide cutbacks was a reflection of how well it was doing. HealthMedia’s sale in 2008 was certainly good news for investors. It had been founded in 1998 by Victor Strecher, a professor of health behavior and health education at UM, and Rick Snyder, the Ann Arbor venture capitalist. Its sale — for what was believed to be substantially more than $100 million — was described as a home run for its VC partners, which included Snyder, Ann Arbor-based Arboretum Ventures and Kentucky-based Chrysalis Ventures L.L.C. It also resulted in a $1.7 million payday for the school’s student-run Wolverine Fund. Beyond profits, the sale was good news because Johnson & Johnson kept the company in Ann Arbor. And it showed venture capitalists on the East and West coasts that you could attract strong management teams to the Midwest and that you could negotiate a strong exit for your investment here even in a bad economy. — Tom Henderson From Previous Page people reorganize their body so that they are not succumbing to certain medical issues, like atrophy, poor circulation and scoliosis,” he said. “My focus is to not just focus on restoring function but keeping patients healthy and painfree, offering them a quality of life.” The company, with 12 employees, relocated to Scio Township from Columbus, Ohio, last year following a $1.4 million Michigan Economic Growth Authority tax credit. “We were looking for a more patient-friendly atmosphere,” he said. “Being located in Michigan has given us opportunities like our company has never experienced.” Axiobionics generated $1 million in revenue last year and expects its new home in Michigan to help generate more than $1.5 million this year. The company is prototyping and testing a vascular-based product, specifically focused on blood circulation, and a product developed to help patients suffering from osteoporosis. However, its biggest quest is to medically validate its products so that Medicare and Medicaid will cover them for patients. Axiobionics is testing its vest and sleeve systems in partnership with the University of Michigan Health System. “Our main goal is to make Michigan our proving ground and validate our business model,” Muccio said. “We hope to show that this product is medically viable and not just a phenomenon.” — Dustin Walsh Who is Rehmann? One team. One focus. Your success. What makes us different?  http://www.rehmann.com http://www.rehmann.com

Table of Contents for the Digital Edition of Crain's Detroit Business - 25th Anniversary Issue, May 3, 2010

Crain's Detroit Business 25th Anniversary
Looking Forward
25 Companies to Watch
25 Mainstays
25 People Then and Now
25 Scandals and Dubious Deeds.
25 Philanthropic Gifts
25 Newsmakers of the Year
25 Big Stories
25 Innovations
25 Gone But Not Forgotten
Health Care
Defense
Suppliers
The Internet and Communication
Energy
Finance
Signs of the Times

Crain's Detroit Business - 25th Anniversary Issue, May 3, 2010

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