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From the Editor |
Ortho Industry Digs Beneath the Surface for Success
Published: September 15, 2010By: Maria Fontanazza
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Despite the slowing of sales, the orthopaedics industry is making progress in both business and product development.
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In the past month alone, orthopaedics companies have laid the grounds for future success. They’ve added jobs, engaged in acquisitions to solidify product lines, and many manufacturers have reported encouraging financial results.
Biomet announced a plan to add nearly 280 jobs to its Warsaw, IN headquarters over the next two years and is spending $26 million on site improvements. As part of the company’s plan for expansion in Indiana, the state’s economic development agency is giving Biomet $2.75 million in performance-based tax credits, along with training grants that could total upwards of $200,000.
In acquisitions news, one of the larger announcements was Medtronic’s intent to buy Osteotech for $123 million. Osteotech is a major processor of aseptic bone allograft tissue, and Medtronic is hoping that the company’s successful product line positions its biologics business for significant growth over the next few years.
Amedica Corp., a young company that specializes in ceramic implant technology, recently completed a $30 million financing. The proceeds will help the company as it goes through a challenging time in the capital markets and will be used for expansion, mergers and acquisitions, and sales and marketing support. Despite difficulties in the market, Amedica reported a compound annual growth rate of 24% during the last six quarters for its spinal implant business.
Spinal product specialist K2M Inc. has prepared itself for an aggressive push in the worldwide market through its deal with Welsh, Carson, Anderson & Stowe. The private equity firm acquired K2M’s outstanding stock and has become the majority shareholder of the company. The deal will help K2M speed up its R&D efforts and expand its global sales force.
More promising news came from Exactech, which experienced strong growth during the first half of 2010. Company revenue increased in all product segments and pushed for more growth through an acquisition of spine products.
A lot has happened on the business side of the orthopaedics industry, and much is happening on the design side as well. From creating parts for implants to ensuring that the product testing phase is executed properly, the Fall issue of OrthoTec focuses on attention to detail, which is a critical part of attaining market success. Although the economy is still struggling, many manufacturers are experiencing increased demand from their customers. These days, timing is critical, resources are limited, and saving money is key. The cover story, “Implants Forge Ahead,” offers insight into how to make implants efficiently while potentially saving more than $100 per part.
The other features in this issue follow the crucial stages in product development. If you’re in the business of manufacturing small, complex implants, “Barely Scratching the Surface,” explains how a technology for photochemical etching creates surface textures that provide implant stability and bone adhesion. Beyond creating texture is analyzing the surface material, “Getting It Right on the Surface” includes some problem-solving examples that shed light on the importance of selecting an analysis method that provides the most useful data.
Mechanical product testing is yet another phase of product development. Its results can make or break whether a device can move forward to the market. “The Dos and Don’ts of Mechanical Testing” provides a great outline that all manufacturers should following once it’s time to start this crucial stage of device design.
The orthopaedics industry is a large segment within the medical device industry. Although the Fall issue of OrthoTec goes a bit beyond the surface of product design, stay tuned for even more in-depth articles here on our Web site.
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