As surgeries get pushed to later in the year, growth against easier comps does not signal market strengthening

The US Total Joints Market, which comprises approximately 55% of the global market, experienced stronger growth YoY, up+1.6% for Q119 compared to -0.8% in Q118, according to SmartTRAK Financial Dashboard. Growth also increased sequentially from Q418’s 1.5%.

The market benefited from easier comps against Q118’s nasty flu season which prompted hospitals across the US to postpone surgeries. But SmartTRAK does not believe the bump in growth in the face of easy comps signals a strengthening recon market. Looking back on a 2-yr basis, the market appears to have decelerated 50 bps which suggests an accompanying slow down in the number of procedures taking place early in the year. Wells Fargo’s Larry Biegelsen speculates that...

Among the many topics covered in the Q119 Total Joints Market Recap are:

SmartTRAK interviews Arthrosurface CEO Steve Ek about the Company’s newest shoulder system, the OVOMotion, and what differentiates it from other current and emerging shoulder systems

The orthopedic industry has sharpened its focus on value-based care. Health care providers are looking for technologies that maximize care, reduce costs and increase efficiencies, while patients are seeking affordable treatment options that will restore their function and improve their quality of life.

At the 2019 American Academy of Orthopaedic Surgeons (AAOS) Annual Meeting, Arthrosurface CEO Steve Ek, Dr. Greg Nicholson, Rush University Medical Center, and Dr. Anthony Miniaci, Cleveland Clinic, discussed the Company’s newest shoulder implant system, the OVOMotion stemless shoulder, and its value proposition for both health care providers and patients in an interview with SmartTRAK.

(This is Part 2 of SmartTRAK’s interview with Arthrosurface. Be sure to see Part 1 - "Arthrosurface Takes Aim at Patellofemoral Pain" - in which Arthrosurface discusses their new patellofemoral joint implant, the Wave Kahuna.)

Arthrosurface hopes to expand the market for joint arthroplasty with a novel patellofemoral arthroplasty implant and five-year data demonstrating long-term clinical benefits for treating patients with patellofemoral pain earlier in the treatment continuum, with evidence suggesting that it halts the progression of osteoarthritis (OA).

Today, many of these patients fall into a treatment gap. As much as 22% of the US population could be suffering from patellofemoral pain, according to a recent analysis of data from 23 studies. PLoS One Many orthopedic surgeons remain unconvinced that surgical management is of long-term benefit. Instead they choose to manage these patients with conservative treatment until they become candidates for joint replacement.

To find out more about the Company’s new patellofemoral arthroplasty implant, the WaveKahuna, and how it can address surgeon concerns about long-term clinical benefits, SmartTRAK interviewed Arthrosurface CEO Steve Ek, and Gregory Nicholson, MD, Rush University Medical Center at the 2019 American Academy of Orthopaedic Surgeon’s (AAOS) Annual Meeting held March 12-16 in Las Vegas, NV.

Pricing pressure and tough comps slow year end growth

SmartTRAK reports that pricing pressure and a slow down in elective procedures impacted the Extremities market overall, with US Market growth down sequentially from +4.7% seen in Q318 to +3.5% in Q418. The Extremities market no longer seems to be able to fly under the radar and, as healthcare facilities look to maximize reimbursement in all areas, pricing for legacy products are facing discounting. In addition to pricing pressure, economic uncertainty in the US during Q4 led to some healthcare consumers choosing to put off elective procedures...

Among the many topics covered in the Q418/FY18 Extremities Market Recap:

Typically, Q4 is a rebound quarter for Total Joints, but SmartTRAK reports that the Q418 US market experienced a sequential decline in growth from Q318’s unseasonably strong growth, due in part to easier YoY comps. In addition, Q4 growth was also slower than the same period last year. FY18 results for the US TJR market confirms a slowing in revenue growth compared to FY17. SmartTRAK believes that increased pricing pressure and a deceleration in procedure volumes during Q4 contributed to the lower growth...

SmartTRAK highlights trends shaping the Extremities Market

It’s no surprise orthopedic companies continue to focus on the Extremities market. Extremities has delivered overall growth in the US in the high single digits – above 6% for nearly all of 2018, according to SmartTRAK Financial Dashboard, and this growth trend is expected to extend through 2019.

So what else is influencing the Extremities market? Here are some trends to watch:

It’s no surprise that Q318 US revenue growth accelerated YoY when, for the same period last year, the US Total Joints Market experienced major market disruption from two major hurricanes which delayed procedures beyond the usual Q3 procedural slowdown. Industry analysts, including Cantor Fitzgerald’s Craig Bijou, report that US recon growth was relatively flat on a stacked two-year basis. From this perspective, SmartTRAK believes this trend confirms the market is not showing major signs of improvement or decline...

Among the many topics covered in detail in the Q318 Total Joints Market Recap are:

Foreign currency exchange rates boosted reported WW market growth, while the US market failed to rebound as expected

Among the many topics covered in detail in the Q218 Total Joints Market Recap are:

Extremities market experiences slight gains due to expanded product portfolios 

Among the many topics covered in the Q218 Extremities Market Recap are:

• Competition in Shoulders Heating Up
• Expanded Portfolios and Awareness Driving Continued Ankle Growth
• Extremities Fixation: Company Focus and New Product Intros Incite Growth
• Regulatory Highlights

SmartTRAK discusses the current and future state of ankle replacement in the United States including current trends in the market and how ankle replacement may evolve in an interview with Steven Haddad, MD, Senior Attending Physician, Illinois Bone and Joint Institute.