Overview
Orthopedic and neuro-surgeons that specialize in the treatment of the human spine comprise the medical specialty of spinal surgery. Spine specialists use various implantable devices, tools and accessories in the surgical treatment of degenerative disc disease, trauma to the spine, vertebral deformity (scoliosis, for example), and vertebral compression fractures often caused by osteoporosis. The spine area is the fastest growing segment of the large, and growing, worldwide orthopedics market.
Devices in this space include implantable metal spinal fusion instrumentation such as screws, hooks, rods and plates; spine cages; bone dowels and spacers; bone graft and other orthobiologic products; vertebral compression fracture devices; electrical spinal bone growth stimulators; minimally invasive discectomy, laminectomy and fusion devices; and artificial discs and disc nucleuses.
New spine technologies offer significant benefits to a growing patient population. Minimally invasive alternatives for microdiscectomy and spinal fusion are lowering costs and shortening hospital stays. Biomaterials based implants that resorb and are replaced by a patient’s own bone eliminate the use of metal implants and the need for future surgery to remove metal fixation devices. Allogeneic and synthetic bone graft materials used in spinal fusion procedures eliminate the need for a second surgical site to harvest autologus bone. Artificial discs focused on preserving range of motion, (versus spinal fusion which eliminates it), are soon to enter the U.S. market and alternative bearing surfaces that address wear debris are being developed to improve device effectiveness and the longevity of implants.
Market Opportunity
It is reported that the worldwide market for all orthopedics grew 15% to almost $16 billion in 2003. An approximate $3.0 billion of total orthopedic sales were related to the spine area, which itself grew 25% in 2003. It is estimated that the worldwide spine market will continue to grow in the 20%-25% range driven by (1) favorable demographic trends, (2) a favorable reimbursement environment, including a change in payer mix away from Medicare toward third-party payers who pay at higher rates; and (3) introduction and adoption of new, higher-priced technologies aimed at reducing costs and improving outcomes.
Kairos Focus
Although a substantial portion of the spine market is dominated 3 or 4 large players, significant innovation by small companies that fit the Kairos profile exists in the sector. The dynamics of the market have resulted in a variety of distribution partnerships in the orthobiologics area, and significant consolidation of unique technology and device developers by large medical device companies. Kairos will focus on those innovative companies with devices and techniques that lower cost and improve surgical outcomes, such as orthobiologic implants, growth factors, and new minimally-invasive surgical tools and techniques. |
