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Conformis introduced its new Image-to-Implant® Platinum Services℠ Program, initially addressing personalized primary knee replacement. Full roll-out to the existing customer base is expected by September 2022. As of today’s announcement, new customers will only be able to provide the company’s fully personalized knee system through participation in the Image-to-Implant Platinum Services Program.
This premier service offering is available for the U.S. market, and addresses the evolving demands of the healthcare marketplace where generic products are being commoditized but patients are increasingly willing to pay a premium for personalized treatment options.
Both Medicare and commercial payors permit patients to pay out of pocket for non-covered, deluxe services. Through Platinum Services, Conformis is bringing this approach to orthopedics by enabling participating facilities to offer patients an out-of-pocket upgrade to obtain the company’s fully personalized Identity™ knee system. Combined with its standardized Imprint™ knee system, Conformis now addresses multiple market segments within knee arthroplasty:
- the Imprint knee provides a data-informed high-quality knee implant system that provides a level of personalization through its patient-specific instruments and proprietary algorithms for pre-surgical planning, at a price comparable to standard off-the-shelf options; and
- the Platinum Services Program, which gives patients the opportunity to upgrade to a fully-personalized Identity knee by paying an incremental deluxe services fee.
Per company-sponsored market research, 30% of patient respondents expressed willingness to pay $3,000 or higher to personalize their knee implant, and of 140 surgeon respondents, 20% to 50% indicated a willingness to offer the personalization service to their patients.
Of note, this introduction provides a new service line opportunity for inpatient and ASC facilities. No capital investment is required, nor is there a change to clinical workflow. ASCs and hospitals may collect an out-of-pocket payment for these deluxe services.
Leadership also offered a preliminary look at 4Q21 revenue results and initial expectations for full-year 2022.
- Expects to report product revenue of approximately $15.3 million for 4Q21; this compares to the $15 million to $17 million range referred to late last year.
- Expects full-year 2022 product revenue to grow from 2021 and be in the range of $60 million to $70 million.
While the company has achieved the low end of its fourth-quarter guidance, Conformis gained little ground in recouping its 2020 product revenue losses. Total product revenue for 2021 will be approximately $58.3 million, -0.3% vs. 2020. Compared to 2019, product revenue declined -24%. Conformis’ product revenue declined in four out of the last five years, a trend new products and service initiatives could potentially reverse.
“Conformis is positioned well as we head into 2022. We are seeing traction with our new Imprint knee system and we are excited about the introduction of the Platinum Services Program, which is a first in orthopedics and builds on our rich history of pioneering and developing patient-specific solutions,” said Mark Augusti, President and CEO. “This new program will enable surgeons and patients to select their preferred therapy together; whether it be Imprint, which is our new standardized knee implant system, or Identity, which is our premium fully-personalized total knee system that now offers patients a five-year limited warranty, underscoring our commitment to design excellence, manufacturing quality, and patient satisfaction.”
Source: Conformis, Inc.; Investor Presentation
Conformis introduced its new Image-to-Implant® Platinum Services℠ Program, initially addressing personalized primary knee replacement. Full roll-out to the existing customer base is expected by September 2022. As of today’s announcement, new customers will only be able to provide the company's fully personalized knee system through participation...
Conformis introduced its new Image-to-Implant® Platinum Services℠ Program, initially addressing personalized primary knee replacement. Full roll-out to the existing customer base is expected by September 2022. As of today’s announcement, new customers will only be able to provide the company’s fully personalized knee system through participation in the Image-to-Implant Platinum Services Program.
This premier service offering is available for the U.S. market, and addresses the evolving demands of the healthcare marketplace where generic products are being commoditized but patients are increasingly willing to pay a premium for personalized treatment options.
Both Medicare and commercial payors permit patients to pay out of pocket for non-covered, deluxe services. Through Platinum Services, Conformis is bringing this approach to orthopedics by enabling participating facilities to offer patients an out-of-pocket upgrade to obtain the company’s fully personalized Identity™ knee system. Combined with its standardized Imprint™ knee system, Conformis now addresses multiple market segments within knee arthroplasty:
- the Imprint knee provides a data-informed high-quality knee implant system that provides a level of personalization through its patient-specific instruments and proprietary algorithms for pre-surgical planning, at a price comparable to standard off-the-shelf options; and
- the Platinum Services Program, which gives patients the opportunity to upgrade to a fully-personalized Identity knee by paying an incremental deluxe services fee.
Per company-sponsored market research, 30% of patient respondents expressed willingness to pay $3,000 or higher to personalize their knee implant, and of 140 surgeon respondents, 20% to 50% indicated a willingness to offer the personalization service to their patients.
Of note, this introduction provides a new service line opportunity for inpatient and ASC facilities. No capital investment is required, nor is there a change to clinical workflow. ASCs and hospitals may collect an out-of-pocket payment for these deluxe services.
Leadership also offered a preliminary look at 4Q21 revenue results and initial expectations for full-year 2022.
- Expects to report product revenue of approximately $15.3 million for 4Q21; this compares to the $15 million to $17 million range referred to late last year.
- Expects full-year 2022 product revenue to grow from 2021 and be in the range of $60 million to $70 million.
While the company has achieved the low end of its fourth-quarter guidance, Conformis gained little ground in recouping its 2020 product revenue losses. Total product revenue for 2021 will be approximately $58.3 million, -0.3% vs. 2020. Compared to 2019, product revenue declined -24%. Conformis’ product revenue declined in four out of the last five years, a trend new products and service initiatives could potentially reverse.
“Conformis is positioned well as we head into 2022. We are seeing traction with our new Imprint knee system and we are excited about the introduction of the Platinum Services Program, which is a first in orthopedics and builds on our rich history of pioneering and developing patient-specific solutions,” said Mark Augusti, President and CEO. “This new program will enable surgeons and patients to select their preferred therapy together; whether it be Imprint, which is our new standardized knee implant system, or Identity, which is our premium fully-personalized total knee system that now offers patients a five-year limited warranty, underscoring our commitment to design excellence, manufacturing quality, and patient satisfaction.”
Source: Conformis, Inc.; Investor Presentation
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
