Calibrating the craziness and uncertainties of a roller coaster quarter

Because Orthobiologics spans various markets and is used in numerous procedures in different surgical settings, Q2 proved to be a roller coaster of a quarter, creating uncertainty and craziness. Beginning in mid-March with stay-at-home orders and restrictions on elective surgery, US elective procedures bottomed in April, resulting in plummeting revenues and increased angst.

Responding quickly to the new twists and turns of COVID-19, many companies shifted priorities, reduced costs and implemented initiatives to help climb out of the record-breaking descent of Q220. Revenue and procedural recovery varied widely and impacted segments differently.

Among the many topics covered in the comprehensive Q220 OrthoBio  Market Recap* are:

The effects of COVID-19 were felt throughout the WW Spine Market with dramatic Q220 declines in both the US and international markets. 

COVID-19 stifled the Spine Hardware Market in Q220, driving WW revenues down -26.4% in the quarter, with the US at -30.5%. The US Spinal Fusion Market took the hardest hit, with that market seeing a -31.4% decline in Q220 vs US Disc Replacement and VCF Markets at -26.6% and -24.6%, respectively, according to SmartTRAK Financial Dashboard. Needham estimates that Medtronic* gained the most spine share in Q220, with DePuy Synthes* losing the most. 

Among the many topics covered in the comprehensive Q220 Spine Market Recap* are:

The full force of elective procedure shutdowns blasted away at the Total Joints Market in Q220, but Knees took the biggest hit as a higher percentage of knee replacements are considered elective.

As a result of COVID-19, elective procedure shutdowns in early Q220 blasted away at revenue results for the US Total Joints Market. When the dust settled, the US Market for Hips and Knees was down -41.9% according to SmartTRAK Financial Dashboard. US Knees experienced the biggest hit due to its exposure from a higher percentage of elective procedures compared to Hips. US Hips did not come through unscathed but suffered less damage.

Among the many topics covered in the comprehensive Q220 Total Joints Market Recap* are:

Ascension and HOPCo partner together to develop a creative musculoskeletal care platform that could expand across the US

The shift to value-based care in orthopedics has fueled the ongoing debate about the appropriate site-of-care for musculoskeletal conditions – ambulatory surgery center (ASC) vs hospital. However, Ascension Florida and Gulf Coast (Ascension), a part of one of the US’ leading non-profit and Catholic health systems, has a broader more inclusive vision to expand musculoskeletal care in their Florida and Gulf Coast area at the highest possible quality.

Ascension’s vision led them to join forces with the Healthcare Outcomes Performance Company (HOPCo), a company that facilitates the shift to value-based musculoskeletal care, and with Southeast Orthopedic Specialists (Southeast), the largest independent orthopedic practice in the Jacksonville area. In July, Ascension and HOPCo signed an agreement to create and develop a continuum-of-care musculoskeletal platform.

Founded in 2012, Enhatch is a privately held venture-backed medical technology company that uses artificial intelligence (AI)-based software solutions to fill in the gaps medical device manufacturers face in enhancing implant design, developing patient-specific instrumentation and integrating communication among enabling technologies. The Company also incorporates machine learning to simplify clinical and logistic workflows for hospitals based on individual patient data through the entire surgical continuum of care.

Facing the prevailing headwinds of the pandemic, the MedTech industry presses on with product innovation and plans for the future. SmartTRAK reports daily on the challenges still ahead, covering all aspects of the Orthopedic market: Extremities, OrthoBio, Spine, Computer Assisted Surgery, Total Joints, Trauma, Soft Tissue Fixation and EU Extremities and Trauma.

The following is just a small sampling of the Orthopedic updates from around the world compiled, reviewed and posted in real time last week by our SmartTRAK analysts. We constantly monitor the worldwide MedTech industry, sifting through the noise to present to our subscribers the most relevant international news, trends, new products, patents, financial data and competitor developments in the global Life Sciences industry.

Tracking the surge of Spine M&A activity during COVID-19.

The med device market downturn related to COVID-19 has led to a notable uptick in M&A activity across the board, with a number of acquisitions that will impact the Spine market.

Recent Deals
Perhaps the most notable deal has been Medtronic's* (MDT) agreement to acquire Medicrea, a manufacturer of custom spine implants, for about €7.00 per share, a premium of 22% over the closing price of shares on July 14. The acquisition is expected to close by the end of 2020.

Although COVID-19 has disrupted the medical device market, with many elective procedures being postponed, SmartTRAK anticipates the Trauma market to recover in 2021 and beyond. We anticipate that US Trauma fracture fixation procedures will be only slighted impacted by COVID-19, resulting in nearly flat YoY growth from 2019 to 2020 and believe that 2021 procedures will return to normal. This will result in 2021 procedural growth rates being inflated at ~10% and 2022 experiencing normal growth trends as volumes begin to stabilize. 

While reverse TSA has grown in popularity, is it always the best option?

Reverse total shoulder arthroplasty (RTSA) was a hot topic during the Current Concepts in Joint Replacement (CCJR) Spring 2020 meeting, held virtually due to the COVID-19 pandemic. Several Orthopaedic Crossfire discussions revolved around RTSA, and surgeons debated several issues, including whether RTSA should be the standard of care for glenohumeral arthritis. The reverse shoulder market segment comprised 54.6% of US Shoulder Market revenue in 2019, compared to 37.1% for anatomic shoulders, according to SmartTRAK estimates.