DePuy Synthes acquired Innovative Surgical Solutions, doing business as Sentio, and its nerve localization technology used in minimally invasive spine surgery.
DePuy Synthes is the second largest player in the spine market with revenue of $1.6 billion in 2016, according to ORTHOWORLD estimates. The company experienced spine revenue declines of 7.8% in 2015 and 1.6% in 2016, which leadership partially attributed to gaps in its product portfolio. The acquisition of Sentio expands DePuy Synthes product offering in the minimally invasive surgery space, while answering customer demands for technology that creates operating room efficiencies and is adaptable to the outpatient setting.
Sentio’s platform uses adhesive smart-sensors that are applied to the patients’ skin and provide the surgeon real-time feedback on nerve location. The technology reportedly eliminates the need for a neuromonitoring specialist and has a minimal footprint in the operating room.
Leadership stated that the platform’s surgeon-driven approach will assist the company in reaching more customers in the ambulatory surgery setting. DePuy Synthes intends to market the technology globally.
Spine accounts for ~18% of DePuy Synthes’ orthopaedic revenue, by our estimates, and the company has made recent product investments in an effort to return the segment to growth. Of note, in 1Q17, DePuy Synthes acquired Interventional Spine assets, including expandable fusion cages and a facet screw system for open and percutaneous spine surgery. Further, the company launched the KICK 2D portable spine navigation system in 2016 through a partnership with Brainlab.
Sources: DePuy Synthes; ORTHOWORLD Inc.