Health Care Manufacturing Strengthens Tennessee's Economy

From Memphis to Chattanooga, Tennesseans are at work every day manufacturing pharmaceuticals, medical devices and other health-care products that heal injuries, treat illnesses and make life more comfortable.

In Memphis, medical device producers are taking steps to position the city as one of the nation's top centers for musculoskeletal implant manufacturing. Wright Medical Technology Inc., for example, is investing $10 million to upgrade a distribution facility. Onyx Medical Corp., which produces orthopedic wires, pins, drills and screws, is investing $4.5 million in a new plant. NuVasive, a manufacturer of spinal surgery materials, is investing $1.6 million in facility upgrades. Meanwhile, Medtronic Inc. completed a $90 million expansion of its Memphis facilities.

In addition to a quality workforce, Memphis' well-developed logistics industry makes the city a natural spot for the industry to grow, says Willis Yates, president of Y&W Technologies, a supplier to the medical device industry. “The distribution and logistical side of the city really works for the industry. We are only minutes away from Memphis International Airport and FedEx and UPS hubs,” he says.

In Franklin, biotechnology company BioMimetic Therapeutics is creating breakthroughs in the areas of tissue healing and regeneration. In Nashville, Cumberland Pharmaceuticals is pursuing a strategy of acquiring currently marketed and late-stage development pharmaceuticals.

In Chattanooga, Chattem Inc., a manufacturer of consumer health-care products, has been purchased by the French company Sanofi-aventis in early 2010. Chattem's products include such well known consumer items as Act Mouthwash, Dexatrim, Aspercreme and Icy Hot. The company, which got its start in 1879, is keeping its headquarters in Chattanooga. “This acquisition creates substantial benefits for our employees, customers and the city of Chattanooga,” says CEO Zan Guerry.

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