The spinal surgery industry has been around for several decades, but during the last few years new products and technologies have been introduced at a more rapid rate than has been seen for many years. See exhibit below (from MedMarket Diligence report #M510) illustrating the recent burst in new company formation focused on spine surgery. Among these are bone graft substitutes, bone morphogenic proteins, advances in spinal fusion instrumentation and procedures, motion preserving devices and technologies, and gene therapy. These new technologies are driving significant change in the industry, as well as boosting market growth rates, and a rapid rate of change is expected to continue throughout the forecast period.
Orthopedics is a strong and growing market, and therefore attracts quite a number of start-ups with new product ideas, hoping to either launch a novel device or sell a developed idea to a larger company.
One strategy to which more companies are turning is to collaboration with surgical societies. Companies have come to understand that they need to work with the surgical community to win regulatory and reimbursement approvals, and surgeons are recognizing that in order to get the best and latest devices for their patients, they need reimbursement, and they need to work with the medical device companies. Working together, the surgeons and the companies can develop the clinical and economic data that they need to present in order to obtain new reimbursement codes for new products. And of course, without these codes, reimbursement is difficult and often insufficient, if not downright impossible to obtain.
From MedMarket Diligence report #M510, published March 2008.Â Â