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What You Missed at AAOS

Trends, product launches and pipeline previews from last week's big event.

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Medartis Plans IPO

The company's growth plans include new product launches.

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What You Missed at AAOS

Last week we attended the AAOS Annual Meeting in New Orleans, the year’s premier gathering for orthopedic surgeons and industry, where we saw the latest technology and caught up on clinical and commercial trends. Below is a wrap-up of the most notable updates we encountered on the convention hall floor.

News & Trends

  • Robotics were the talk of the conference, with Smith & Nephew highlighting the adaptability of the Navio robotic system and its ability to support their new Journey II bi-cruciate retaining total knee; Zimmer Biomet previewing their ROSA robot for total knee procedures; and Stryker continuing to promote their Mako robotic platform for total knee. Further, J&J recently entered the robotics space with their acquisition of Orthotaxy.
  • On the M&A front, Alphatec announced the acquisition of SafeOp, which provides an advanced, automated solution for neuromonitoring.
  • Industry leaders are reporting healthy procedure volumes and appetite for innovative technologies, particularly when improved patient outcomes are combined with greater efficiency and value.

Product Launches

  • Corin launched the Unity Knee with EquiBalance instrumentation, a total knee system designed to facilitate ligament balancing and soft tissue preservation.
  • Corin also debuted the Trinity Dual Mobility System for hip replacement, which the company says features new technology designed to improve range of motion and reduce the risk for post-operative instability and dislocation.
  • DePuy Synthes introduced the ATTUNE Revision Knee System, to complement the ATTUNE Primary Knee System, a product line that offers a range of components to address various anatomical and complex surgical needs.
  • Medacta announced new products for the knee, shoulder and hip: the MOTO Knee for partial knee arthroplasty, the Medacta Shoulder System, which is the company’s first entry in the shoulder market and the MasterLoc LAT PLUS, a new offset option for its existing total hip product line.
  • Smith & Nephew debuted the Journey II Knee, a bi-cruciate retaining total knee arthroplasty device that is compatible with the Navio robotic system.
  • Stryker launched the Trident II Acetabular System for use in total hip replacement, which is compatible with their Mako robotic arm.
  • Also from Stryker is Pivot Guardian, for use in hip arthroscopy procedures, which the company says is the industry’s first post-free hip distraction system. The company adds that it can help prevent groin-related soft tissue or nerve complications.
  • Zimmer Biomet highlighted products from each of its divisions, including nSTRIDE autologous therapy for knee OA (available ex-U.S.), the Synovasure comprehensive diagnostic panel for periprosthetic and native joint infection, their hip preservation portfolio, which is designed to help slow the progression of hip OA, and the Persona product suite for total and partial knee replacement.

Pipeline Previews

  • Anika’s presentation included a BioSkills workshop on HyaloFast, their hyaluronic acid-based scaffold for hyaline-like cartilage regeneration. The company also highlighted trial and real-world evidence from their new Cingal viscosupplement, a combination steroid and hyaluronic acid product. Neither product is currently available in the U.S.
  • Zimmer featured their nSTRIDE APS Kit, an autologous therapy to treat pain and slow progression associated with cartilage degradation in the knee. nSTRIDE is currently available ex-U.S.

AAOS serves as a preview for what’s to come in orthopedics in 2018 and beyond. We look forward to seeing how these new technologies will continue to shape the musculoskeletal space, and we’ll see you in Las Vegas in 2019.

Posted March 14, 2018

Medartis Plans IPO

Basel-based Medartis announced plans to IPO on the SIX Swiss Exchange, with funds to support the company’s growth strategy. Medartis recorded sales of CHF 105 million (~$110 million) and EBITDA of CHF 19 million (~$20 million) in 2017 and says the time is right for the trauma fixation company to grow, according to a report in Fierce Medtech.

Among its plans for the funds are introducing new products over the next couple of years as well as expanding existing products into new indications and markets.

Posted March 02, 2018
J&J Acquires Orthotaxy

Orthotaxy is developing a robotic platform for partial and total knee replacement.

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Boston Scientific Gears Up for Continued M&A

The company called M&A activity a "priority" on their 4Q:17 earnings call.

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J&J Acquires Orthotaxy

J&J is entering the orthopedic robotics space with its acquisition of Orthotaxy, a developer of software-enabled surgery technologies that is based in France. Among products the company has in development is a robotic technology for total and partial knee replacement, which J&J eventually plans to expand for use in other orthopedic applications. In their press release, J&J says their goal in developing Orthotaxy’s technology is to “build a next-generation robotic-assisted orthopaedic surgery solution that is cost-effective, time-efficient and user-friendly in a variety of care settings.” No deal terms were disclosed.

Posted February 22, 2018

Boston Scientific Gears Up for Continued M&A

As we reported in our Medical Technology: Year In Review 2017, the medical device space has attracted considerable investment from both strategic acquirers and private equity and venture capital firms over the past year – and as we head into 2018, that brisk pace shows no sign of slowing down.

During Boston Scientific’s 4Q:17 earnings call, where the company reported sales that beat estimates as well as in-line EPS, CEO Mike Mahoney was asked whether M&A would continue to be a priority for the company in the next year. In addition to answering in the affirmative and discussing their current venture portfolio, he noted that the company would have approximately $500 million available to put toward strategic uses in the second half of the year.

We’ve summarized Boston Scientific’s recent M&A and private placement history below, which displays a mix of innovative technologies and their emphasis on the cardiac space:

Boston Scientific’s LTM Investment History
Date Target Transaction Type Size ($M) Sector Technology
Jan-24-2018 Millipede Inc. Private Placement 90.0 Cardiovascular  Developing a transcatheter, semi-rigid, complete annuloplasty ring for the treatment of mitral and tricuspid regurgitation.
Oct-02-2017 Apama Medical, Inc. Merger/Acquisition   300.0 Cardiovascular Developing novel catheter ablation technology for atrial fibrillation.
Aug-28-2017 SetPoint Medical Corporation Private Placement   30.0 Autoimmune Disease Developing implantable bioelectronic devices to treat inflammatory diseases.
Aug-23-2017 Channel Medsystems, Inc. Private Placement   14.1 Gynecology Developing cryoablation delivery technologies for endometrial ablation.
Aug-03-2017 Neuros Medical, Inc. Private Placement   22.6 Neurology Developing a neuromodulation technology for chronic pain.
Jul-17-2017 Amphora Medical, Inc. Private Placement   35.5 Urology Developing a cystoscopic technology for the treatment of overactive bladder.
Mar-30-2017 Symetis SA Merger/Acquisition   435.0 Cardiovascular Develops and markets minimally-invasive transcatheter aortic valve implantation (TAVI) devices.
Feb-28-2017 Corindus Vascular Robotics, Inc. Private Placement   45.0 Cardiovascular Markets a system that enables remote delivery and manipulation of coronary guidewires and balloon/stent catheters during percutaneous coronary and vascular interventional procedures.
Source: CapitalIQ

We’ll be watching closely as their strategic efforts develop.

Posted February 02, 2018
Medical Technology: Year in Review 2017

A year-end look at medical technology valuations, transactions and trends.

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GI Company Motus Files for IPO

The company, which makes a colonoscopy prep device, plans to raise $29M.

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Medical Technology: Year in Review 2017

With strong demographics, sustainable growth and constant technological innovation, we believe the $300 billion medical technology industry is healthcare’s most compelling investment opportunity. This thesis continued to mature in 2017, as our sector provided ongoing evidence of investor commitment, continued product development and an active funding and M&A environment.

In our report Medical Technology: Year in Review 2017, we cover:

  • Public valuations: see how the medical technology sector performed compared to healthcare overall and the S&P 500
  • M&A: the largest deals, the most active buyers and sectors
  • Private placements: funding trends and deal characteristics
  • Plus: our predictions for 2018

Download the full report here.

Posted January 23, 2018

GI Company Motus Files for IPO

Israeli GI company Motus announced plans to IPO, anticipating that they will raise $28.8 million to support commercialization of their single-use Pure-Vu device. The Pure-Vu connects to standard colonoscopes to irrigate poorly-prepped colons during colonoscopy. In addition to seeking reimbursement for the system, the company plans to seek an additional indication that will enable them to “actively promote minimal prep capabilities directly to patients.” Motus plans to conduct a clinical trial in 2018 that should enable this expanded labeling in 2019.

In their filing, Motus said that there are 15 million colonoscopies are performed in the U.S. each year. Between 23% and 45% of these patients present for the procedure with poorly prepped colons, which can result in compromised diagnostic accuracy or the need to repeat the test. Additionally, the company says that approximately 57% of patients state that bowel preparation is the number one deterrent for the procedure, which highlights the appeal of a minimal-prep routine in getting patients to comply with screening recommendations.

A number of companies are working to make bowel imaging less invasive and disruptive to patients. Among those technologies are PillCam, which was acquired by Covidien (now Medtronic) via the $860 million Given Imaging transaction in 2013. Check-Cap describes themselves as the first preparation-free capsule-based system for colon cancer screening. And among non-invasive tests is Exact Sciences‘ home-based DNA test Cologuard, which just reported 168% revenue growth (and a total of 571,000 tests prescribed) in 2017 compared to 2016.

Posted January 11, 2018