The underlying fundamentals of the orthopedic industry remain unchanged due to COVID-19. However, we should prepare for significant alterations in the market landscape as well as the ways that we interact with colleagues and customers.
The company managed to drive single-digit growth despite the late-March impact of COVID and expects to be well-positioned to benefit from the inevitable market consolidation occurring due to the pandemic.
Orthopedic sales for the company declined 9.5% in 1Q20 before dropping by nearly half through April. However, the company sees initial recovery signs as countries gradually restart elective procedures.
Fusion Robotics seeks to introduce the world's first portable spinal robotic navigation offering. It can easily fit within a suitcase for simple travel. The full system comprises five parts, including a laptop, USB localizing camera, O.R. table mounting arms, and a four-pound robot.
Spine is the largest individual segment that we track, accounting for 18.2% of the orthopedic industry's overall revenue. Excluding biologics, sales of orthopedic spine products topped $9.3 billion in 2018, growing +2.7% vs. 2017. Growth in the segment exceeded our expectations, as several companies in the top 10 posted double-digit increases that offset lower performance by manufacturers at the top of the list. Here, we take a deeper look at past, present and forecasted performance.
Robotics remains a hotly-discussed topic amongst orthopedic surgeons. OMTEC® 2019 provided a stage for the continued debate during the surgeon keynote, with active robotic users calling for technology advancements and a non-user recommending that adoption be based on data and outcomes.
The first quarter of 2019 was an active one for robotic and digital surgery developments. As adoption of digital surgery tools increases, leadership from joint replacement and spine companies indicate they have seen a direct sales benefit from upselling and product pull through.
According to our estimates published in THE ORTHOPAEDIC INUSTRY ANNUAL REPORT, orthopedic industry revenue reached $51 billion worldwide in 2018 and grew 3.5% over 2017. Results were mixed among the largest companies as some stumbled operationally while others overperformed, due in part to early adoption of technology and entry into high-growth segments. Common strategic themes present in 2018 that will continue as part of the industry's narrative in 2019 and beyond include connected ecosystems of products, flagship technology (e.g. robotics), portfolio-wide pull through and a growing shift to outpatient procedures.
The proliferation of computer-assisted technology companies entering the joint replacement, spine and trauma markets indicates to us that industry believes there's room for product introduction and adoption in robotic- and navigation-based surgery. Here we highlight four of these companies-three new, one established but newly-restructured-and their very different intraoperative technologies.
Clinical studies demonstrated that Stryker's Mako Total Knee was associated with less pain and need for opiates, shorter hospital stays, improved flexion and soft tissue protection vs. manual techniques.
Dr. Martin Roche: "The surgeon still wants to operate, but if this technology makes the procedure more consistent, efficient and generates improved outcomes, the patients will request it and surgeons will utilize the data to potentially develop the next surgical procedures and personalized implants."
ORTHOWORLD estimates Stryker's 2Q18 orthopaedic revenue at US $1,747.8MM, +8.0% from 2Q17, and 1H18 revenue at $3,472.6MM, +7.5% vs. 1H17. Trauma and Extremities Joint Recon remain high performers, with Interventional and Tritanium products contributing to strong spine segment growth.
Patrick Sweeney, M.D., is a spine surgeon with a special interest in minimally invasive surgery. He is also Founder and Medical Director of the Center for Minimally Invasive Surgery, an ASC, as well as an inventor/entrepreneur, and founder of a device company and an eHealth entity. We spoke with him about his diverse orthopaedic endeavors.
Interim study results demonstrated that surgeries performed with Mazor Robotics' Renaissance Guidance System yielded a 5-fold reduction in surgical complications and a 7-fold reduction in revisions vs. freehand-based, minimally invasive lumbar fusion.
Zimmer Biomet issued a voluntary field safety corrective action for certain ROSA Brain, Spine and One surgical robotic devices due to internal identification of an issue that may prevent the robot arm from reaching a desired position. The issue has not been identified in the field.
Stryker announced full commercial launch of the Mako robotic-arm assisted total knee application. Mako is now the only robotic technology that can be used across total hip, total knee and partial knee replacement.
Since mid-May, both Medtronic and Zimmer Biomet have announced strategic moves in the 2-level cervical disc replacement and robotic surgery markets. In efforts to invigorate revenue growth, the two have focused on niche technologies that should expand their portfolios-but have yet to prove wide scale.