Hudson med-tech manufacturer strives to improve lives

New Hampshire Business Review, Feb 02, 2007 by Stone, Tracie

When Stew Herweck saw a leading medical technology company pass up the opportunity to manufacture and distribute a promising medical device 25 years ago, he knew there was a niche that needed to be filled.

So Herweck launched Atrium Medical Corp., a company dedicated to addressing the unmet clinical needs of patients through innovative technology.

"We wanted to compete in a niche market - a market that major companies may not serve," said Paul LeLievre, chief financial officer of the Hudson-based firm.

Atrium's commitment to addressing the unmet needs of patients is reflected in the company's dedication to doing what it can to meet the needs of company employees and the local community. For this reason, Citizens Bank and New Hampshire Business Review have named Atrium Medical Corp. this month's Not Your Typical Business award recipient.

"Atrium and its management team described their business as one in which they make products which help to save lives. In addition, the management team and company have always been very active in supporting the community and those in need through supporting numerous fund-raising and charitable events," said Tim Whitaker, senior vice president at Citizens Bank.

A 140,000-square-foot facility on Wentworth Drive in Hudson has been Atrium's home since 1995. The company employs nearly 400 people, most of whom work in New Hampshire, with others scattered throughout the United States, Amsterdam and Australia.

Anchored in innovation, Atrium has grown from the single-product manufacturing and distributor that it was a quarter century ago to a $100 million company designing, manufacturing and marketing six major groupings of medical devices that are used throughout the world.

While chest drainage devices have been Atrium's top seller since 1985, the company also produces and sells interventional cardiology devices, vascular implants and devices used in general surgery.

According to Herweck, Atrium Medical's CEO and board chairman, the company boasts a 75 percent market share in its industry and has enjoyed an average sales growth of 16 percent for each of the last few years totaling nearly a quarter-billion dollars in revenue over the last three.

'Family atmosphere'

While Atrium's product line has evolved over the years, the company's drive to address the medical needs of patients has remained constant.

"The 'P' word for us is 'patients' not 'profit,' " said Herweck, 55. "Everything we do here is focused on improving patient outcome."

The resulting high-quality products and accompanying service has made an Atrium Medical fan out of Dr. Harold Goldstein, a semi-retired general surgeon and medical professor at the University of Miami in Florida.

"I've admired Atrium for many years," Goldstein said. "They treat everybody like family. They're honest far and present a very good product to the consumer."

Atrium has been successful in building a following that shares Goldstein's view, in part through its ongoing investment in automation.

The company's fully automated manufacturing process has not only allowed Atrium to keep manufacturing jobs in New Hampshire, it has enabled the company to manufacture products in the most costeffective way possible while perpetuating reproducible quality.

Atrium also has made significant investments in research and development. The company is currently busy perfecting the use of coating technologies, which combines pharmacology and medical technology.

"With the advent of coating technology we're converting from devices that perform biomechanical functions to those that are enhanced with pharmacological coating," Herweck said.

Herweck realizes continued success in a highly competitive industry relies on a bright and committed workforce. Loss of skilled engineers to med-tech giants is a constant threat and one that the firm addresses partly through competitive salary and benefit packages and innovative incentive programs.

A bright, state-of-the-art work environment and annual company outings add to the pleasant atmosphere, which for many Atrium employees, is paramount.

"It's just a great place to work. It's a small company with a family atmosphere," said Tom Swanick an engineer in vascular development who joined Atrium Medical Corp. in 1987. "I can run into Steve in the hallway and have a half-hour conversation with him. You'd never get that in a big company."

With so much of Atrium's success dependent on a highly skilled workforce there's little wonder that support of higher education tops Herweck's list of philanthropic causes. Each year Atrium offers 10 college scholarships to area students.

The company also supports the Nashua Soup Kitchen and a variety of medical and children's charities and hosts an annual holiday party for the Nashua Children's Home.

In lieu of holiday gift-giving Atrium makes annual donations to the Dana Farber Cancer Institute and St. Jude's Children's Hospital. And Herweck himself is a cyclist in the annual Pan Mass Challenge fundraiser for Dana Farber.

In the end, whether it's through the products and service Atrium provides or its community support, everything the company does revolves around improving lives. And for Herweck, doing it all in New Hampshire makes it that much better.