Medtronic To Acquire Responsive Orthopedics By Andrew Vahradian, June 7, 2016
Medtronic to Acquire Responsive Orthopedics BY ANDREW VAHRADIAN, JUNE 7, 2016 Medtronic announced the acquisition of Responsive Orthopedics, a developer of low-cost primary joint replacement systems. In order to address the various macroeconomic changes taking place in the U.S. health care system, Responsive Orthopedics has focused on developing a platform of low-cost/discounted primary hip and knee implant systems. The company's implants have fewer size options (less than 10) than other competitive hip and knee systems, however, the company maintains that their implants will be of similar quality and cost 40% less. With this transaction, Medtronic aims to confront the ongoing transition to the bundled payment models being implemented at hospitals and other care facilities, which is creating a new market for low-cost, standardized medical devices. At the end of last year, the Centers for Medicare & Medicaid Services (CMS) finalized its Comprehensive Care for Joint Replacement (CJR) payment model, a bundled payment initiative that holds hospitals in 67 metropolitan statistical areas (MSAs) accountable for the quality of care they deliver to Medicare fee-for-service beneficiaries for hip and knee replacements. CJR aims to improve patient care by rewarding hospitals with additional payments if the quality of the services they have provided is strong, and if the spending performance over the entire episode of care is kept low relative to its peers. If a hospital does not perform well in regards to CRJ's quality and cost metrics, than the hospital potentially will have to repay Medicare for a portion of the spending for care. Hip and knee replacements are the most commonly performed inpatient procedures for Medicare patients. In 2014, Medicare paid approximately $7 billion Continue reading >>
Medtronic Acquires Responsive Orthopedics To Launch Lower-priced Joint-replacementprogramme
Medtronic acquires Responsive Orthopedics to launch lower-priced joint-replacementprogramme (Ref: StarTribune, Minneapolis / St. Paul Business Journal) Medtronic revealed during an investor presentation that it acquired Responsive Orthopedics, which specialises in selling lower-priced knee and hip implants to hospitals in government cost-cutting programmes, for an undisclosed amount last month. Medtronic CEO Omar Ishrak said lower-priced orthopaedics is "an area of obvious interest for us," with a spokeswoman indicating that the company has been a minority investor in Responsive Orthopedics since 2014. According to Medtronic, the deal is part of its drive to broaden hospital-services, which has commitments for $2 billion in contracts already. Geoff Martha, president of Medtronic's restorative therapies group, remarked that the move is not a "Trojan horse" for selling devices to hospitals, "this offering stands on its own." Responsive Orthopedics total knee-replacement system gained FDA clearance in 2015, and the company is developing a hip-replacement system. Medtronic indicated that US sales of the knee implant are expected to begin by July 2017, while sales of the hip system will start by July 2018. Martha explained "these are premium products, just priced differently, priced lower." He added that "the same team that has designed many of the knees and hips that are out there in the market today sold by the big players designed these ones. So there is no impairment on the quality." Martha further noted that Responsive Orthopedics devices do not come in "47 sizes and different colours," but they should meet surgeons needs. As part of the deal, Responsive Orthopedics managing director Doug Kohrs and other executives will serve as consultants to Medtronic's orthopaedic i Continue reading >>
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Medtronic I Responsive Orthopedics Total Knee Arthroplasty System
Contraindications include but are not limited to: Overt or suspected latent infection of the knee joint Active infections at other sites that may spread to the knee joint. Should a patient have any infection prior to implantation, the foci of that infection must be treated prior to, during, or after implantation Patients with inadequate musculature or neuromuscular disorders leading to loss of function in the limb or possibly leading to complications in post-operative care Patients with poor bone stock compromised by disease, infection or prior implantation that cannot provide adequate support and fixation of the device Severe ligamentous or muscle laxity, or inadequate soft tissue coverage to allow for normal healing and re-establishment of proper mechanics Change in positioning, loosening, bending, cracking, fracture, deformation or wear of one or more of the components Pain, dislocation, subluxation, decreased range of motion, or shortening or lengthening of the leg due to improper positioning, looseness, or wear of components Femoral, tibial, or patellar bone fracture intraoperatively, or postoperatively due to trauma, excessive loading or poor bone stock Allergic reactions to materials of components Superficial or deep infection, which may delay healing and necessitate the removal of the prosthesis On rare occasions, arthrodesis of the joint or amputation of the limb may be necessary Nerve damage, deep vein thrombosis, periarticular calcification or ossification, articular injury, or vascular occlusion Never combine components with those made by different manufacturers. Do not implant any device that has been used, or if the package appears damaged, tampered with or breached. Surgeons should be familiar with the implant, instruments, and surgical technique before Continue reading >>
How Responsive Orthopedics Defied The Industry Norm To Make Knee, Hip Devices More Affordable 6 Key Insights
How Responsive Orthopedics defied the industry norm to make knee, hip devices more affordable 6 key insights Written by Mary Rechtoris| May 09, 2016| Print | Email Twin Cities (Minn.) med-tech executive Doug Kohrs and two partners started Responsive Orthopedics with the goal of providing affordable knee and hip devices, according to Star Tribune. 1. Bundled payments allow providers to offer patients low-cost, standardized medical devices. However, many major device manufacturers will not sell the models due to low profit margins, and many venture firms are hesitant to fund start-ups if the start-up offers low premiums. 2. On April 1, CMS enrolled 67 metro regions, including the Twin Cities, in their Comprehensive Care for Joint Replacement program. The program awards providers for quality outcomes, with CMS setting a goal of tying 85 percent of its 2018 payments to value-based care. 3. In a 72-page analysis, Citrigroup Global Markets analysts argued many dominant orthopedic players are not keeping pace with bundled payments, which then allows start-ups to come into the market as they are more willing to utilize such payments. 4. Therefore, Mr. Kohrs and his partners self-funded Responsive Orthopedics, with the intent of offering low-cost systems for hip and knee replacements. Mr. Kohrs and his physician partners have thus far invested up to $10 million in Responsive Orthopedics, which will sell FDA-cleared devices. 5. The company will sell devices to hospitals using bundled payments for hip and knee procedures. Responsive Orthopedics will not sell physician-owned distributorships. 6. Responsive Orthopedics aims to lower devices' cost by up to 40 percent through changing the distribution process. Responsive Orthopedics' devices cost less than other orthopedic device com Continue reading >>
Medtronic Enters Bundled Ortho Implant Space With Responsive Orthopedics Buy
Home Medtronic enters bundled ortho implant space with Responsive Orthopedics buy Medtronic enters bundled ortho implant space with Responsive Orthopedics buy Medtronic (NYSE: MDT ) said this week that it acquired Responsive Orthopedics for an undisclosed amount, in preparation for its entry into the bundled hip-and-knee market. Minneapolis-based Responsive sells itstotal knee replacement implants to hospitals participating in federal bundling programs that reimburse based on outcomes rather than procedures performed. The company is also developing a hip implant offering, which has yet to win approval from the FDA. The buy is part of Medtronics $2 billion push toward what chairman & CEO Omar Ishrak calls value-based healthcare, in which medical devices are bundled into a package that includes services designed to lower healthcare costs while maintaining quality of care standards. Its an area of obvious interest for us, Ishrak told analysts during an investor conference June 6, according to the Minneapolis Star Tribune. Medtronic has had a minority stake in Responsive since 2014 and closed the acquisition last month, a Medtronic spokeswoman told thethe Star Tribune andthe Minneapolis/St. Paul Business Journal. These are premium products, just priced differently, priced lower. The same team that has designed many of the knees and hips that are out there in the market today sold by the big players designed these ones. So there is no impairment on the quality from our perspective, Geoff Martha, president of Medtronics Restorative Therapies business, said during the investor conference. We dont consider these to be value products at all, Martha said . This offering stands on its own. Responsive Orthopedics was co-founded by former Tornier CEO Doug Kohr Continue reading >>
Press Release | Newsroom | Medtronic | Medtronic Launches Orthopedic Solutions Business To Help Providers Deliver Outcome-focused Care And Succeed In New Value-based Bundled Service Models
Medtronic Launches Orthopedic Solutions Business to Help Providers Deliver Outcome-Focused Care and Succeed in New Value-Based Bundled Service Models Orthopedic Solutions Offers Comprehensive Services for Joint Replacement Episodes of Care, Including the Launch of a Total Knee Arthroplasty System DUBLIN and DALLAS - Nov. 10, 2016 - Medtronic plc (NYSE: MDT) today announced the launch of Medtronic Orthopedic Solutions, a comprehensive offering for total joint replacement episodes of care designed to drive clinical and economic outcomes. This offering is in response to the high costs associated with hip and knee replacements, along with the growing emphasis on improving patient outcomes, and specifically addresses the Centers for Medicare & Medicaid Services (CMS) recently implemented Comprehensive Care for Joint Replacement (CJR) model - a bundled payment initiative that holds approximately 800 hospitals accountable for the quality of care they deliver for hip and knee replacements. Medtronic Orthopedic Solutions offers a consultative program designed to help providers meet CJR requirements by reducing system costs while addressing patient satisfaction and outcomes; it will support providers from pre-surgical planning through the 90th day post discharge. In addition, Medtronic is launching a value-based total knee arthroplasty system at the American Association of Knee and Hip Surgeons Annual Meeting (AAKHS), which is currently taking place in Dallas. The Total Knee Arthroplasty System will be widely available in the first half of 2017. "Medtronic is here to help speed the adoption of value-based healthcare in orthopedics by helping hospitals drive down costs while keeping outcomes top of mind," said Geoff Martha, EVP and president of Medtronic Restorative Therapies Gro Continue reading >>
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Medical Device Daily | Today's Headlines
Medtronic maintains momentum after fall swoon, up 20% this year aided by M&A Medtronic plc turned in its fifth consecutive year of mid-single digit revenue growth with the close of its fiscal 2017. It's maintaining an active focus on M&A working to build on its fastest growing businesses and to divest lesser contributors. Of its 5 percent in revenue growth for the year to $29.7 billion, about 1 percent of that came from acquisitions. Even as the Dublin-based med-tech giant focuses on paying down debt and boosting its credit rating, Medtronic will continue its dealmaking to help it build through delivering new therapies, emerging markets growth and add-on services and solutions. It spent roughly $1.5 billion on M&A in each of the last two fiscal years; the massive $43 billion Covidien acquisition closed the fiscal year before that. In fiscal 2016, that cash was spread out over 14 deals; but for fiscal 2017 there were just five. Medtronic's fiscal year end was on April 28. Most of the the fiscal 2017 M&A amount went to just two deals: a $1.1 billion acquisition of heart failure player Heartware International Inc. and a $350 million purchase of the gynecology business from Smith & Nephew. Medtronic also bought low-cost hip and knee implant start up Responsive Orthopedics for an undisclosed sum. In addition, Medtronic quietly purchased Intact Medical Corp., which has a breast biopsy technology to remove an entire lesion thereby eliminating the need for a follow-up surgery if it proves benign. It also acquired a majority stake in a Dutch obesity clinic known as The Nederlandse Obesitas Kliniek (NOK). A long-time theme for Ishrak has been growth via three "strategic pillars": new therapies, emerging markets as well as services and solutions. Medtronic is also working to inte Continue reading >>
Medtronic's Surgical Robot To Boost Revenue In 2019
Medtronic's surgical robot to boost revenue in 2019 Medtronic, the worlds largest stand-alone medical device firm, is developing a surgical robot expected to launch in 2019 and generate "material revenue," Bryan Hanson, who heads the company's minimally invasive therapies group, told Reuters. The company's new robot will directly compete with the da Vinci system (Intuitive Surgical) - the only robot currently performing abdominal surgery - but future competition is expected from a Johnson & Johnson startup, Verb Surgical, and Alphabet's Google, which is also developing a robot. News of Medtronic's robot raised the stock slightly,according to The Street . Robotic surgery, where the surgeon guides the robot's "hands," is able to make smaller incisions than humans and has become popular for procedures such as hysterectomies and prostate removals. The smaller incisions enable faster recovery, fewer infections, and smaller scars.The company said it planned to lower the costs associated with robotic surgery with their new system. Medtronic is also developing hip and knee replacements for hospitals adjusting to new Medicare bundled payment programs through its recently acquired Responsive Orthopedics, which will manufacture the devices,Reuters reports. In addition, it plans to apply for FDA approval of the first "hybrid closed loop" insulin pump that adjusts insulin delivery in the event of high glucose readings and suspends it when glucose levels are low. A study in 2015 that examined 14 years of FDA data found that surgical robot use is linked to at least 144 deaths and more than 1,000 injuries in the U.S. from a total of 1.7 million robotic procedures performed between 2000 and 2013. Events ranged from burnt tissue from electrical sparks to system errors making surgery tak Continue reading >>
Medtronic Buys Responsive Orthopedics
Written by Mackenzie Bean| June 08, 2016| Print | Email Medtronic recently acquired Minneapolis-based Responsive Orthopedics, a start-up company that specializes in selling devices to hospitals involved in government cost-cutting programs. On Monday, Medtronic executives informed investors that they acquired the startup in a private deal with undisclosed terms. Medtronic, also based in Minneapolis, has been a minority investor in Responsive Orthopedics since 2014. The deal stems from Medtronic's overarching strategy to capitalize on the national push for greater value in healthcare purchasing. While most orthopedic implant companies focus on innovating more features and models to drive up premium pricing, CEO Doug Kohrs founded Responsive Orthopedics with a rare vision in the med-tech world to sell low-cost artificial knees and hips with streamlined size offerings and instrument sets. Responsive Orthopedics' implants are intended exclusively for healthcare providers participating in federal programs to reduce costs of hip and knee procedures. These bundling initiatives push hospitals toward less expensive medical devices that deliver the same quality of care. While the company's hip-replacement system is still in development, the total knee-replacement system earned FDA approval last year. Medtronic predicts U.S. sales of the knee implants to begin by July 2017, with hip system sales starting a year later. Continue reading >>
Mergers And Acquisitions In Orthopedics
Paragon Medical is acquired by NN for $375M cash JRI Orthopaedics (UK) is acquired by AK Medical (China) for $24M SafeOp is acquired by AlphaTec Spine for $27M cash plus stock Orthotaxy, a French software-enabled surgery startup, is acquired by J&J DePuy for undisclosed Zyga Technologies is acquired by RTI Surgical for undisclosed IMASCAP, a company with shoulder replacement pre-op planning software, is acquired by Wright Medical for $89M Rotation Medical is acquired by Smith & Nephew for $210M Exactech is acquired by TPG Capital for $625M Vertera Spine acquired by NuVasive for undisclosed Sonoma Orthopedic Products acquired by Arthrex for undisclosed (no public announcements) Medshapes ExoShape ACL portfolio is acquired by ConMed for undisclosed Thortex and Millennium Surgical acquired by Avalign Technologies for undisclosed Sentio nerve location technology for spine acquired by J&J DePuy Synthes for undisclosed . Spinal Elements acquired by Amendia for undisclosed Technology from Tissue Regeneration Systems (3D printing tissue) is acquired by Depuy Synthes for undisclosed OsteoMeds spine assets are acquired by Wenzel Spine for undisclosed Exactechs spine assets are acquired by ChoiceSpine for undisclosed Interventional Spines assets are acquired by J&J DePuy Synthes for undisclosed Ivy Sports Medicine is acquired by Stryker for undisclosed Clinical Graphics,an imaging company to diagnose hip impingement, is acquired by Zimmer Biomet for undisclosed Instrateks portfolio of staple and hammertoe implants and MIS soft tissue recession instrumentation is acquired by Stryker for undisclosed NLT Spine acquired by SeaSpine for $53M French robotics company, Medtech with technology for MIS spine procedures, Medtech, is acquired by Zimmer Biomet for $77M DFine is acquired by Me Continue reading >>
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Making Sense Of Medtronics Medtech Moves
Uniting the people who know, to talk about the things that matter HEALTHEGY NEWS - SHARING CRITICAL INSIGHTS ON HEALTHCARE INNOVATION Making Sense of Medtronics Medtech Moves There is a reason why last weeks Medtech Conference led off with an intriguing interview with Geoff Martha, Executive Vice President, Restorative Therapies Group at Medtronic. This week, the sector giant announced it is entering the enormous large joint market with the purchase of Minneapolis-based Responsive Orthopedics. The company says the deal will enable it to undercut the incumbents prices due to new government mandates that incentivize value-based care via bundled payments. The entry into orthopedics may sound surprising but it fits nicely into the acquisition strategy laid out last week in Marthas conversation with Stacy Enxing Seng of Lightstone. He didnt mention the Restorative deal, but Martha might as well have as the deal meets the criteria he laid out for acquisition. You can watch the interview here and listen to a portion of it in this weeks MedtechTalk Podcast . Medtronic is aiming to shake up the market with a knee replacement in early 2017 and a hip replacement a year later; the knee already has FDA clearance, but the hip does not. Company officials stressed that they view the products as premium quality, but not premium priced. They hope the pricing is feasible due to Responsives low-cost, disruptive business model. The bigwig is taking a targeted approach to the low-growth sector. It will target hospitals impacted by the Comprehensive Care for Joint Replacement (CJR) Model , making the move a value-based health care play. Under the CJR, hospitals will be penalized for high-cost hip and knee replacements, and receive financial rewards if the total cost of care (including rehabi Continue reading >>
Medtronic Expects Revenue From Surgical Robot In Fiscal 2019
Medtronic expects revenue from surgical robot in fiscal 2019 (Reuters) - Medtronic Plc, the worlds largest standalone medical device maker, said on Monday it expects a robotic surgical system it is developing to make a meaningful contribution to company revenue beginning in fiscal 2019. Medtronic will launch the surgical robot before the 2019 fiscal year, with the first systems to roll out in India, said Bryan Hanson, head of the minimally invasive therapies group. The robot will generate material revenue in fiscal 2019, Hanson said in the companys investor day presentation. In robotically assisted surgery, the surgeon guides the robots mechanical arms from a computer console. The approach requires smaller incisions than traditional open surgery and is increasingly used in procedures such as prostate removal and hysterectomy. When launched, Medtronics robot will compete with Intuitive Surgical Incs da Vinci system, the only robot for abdominal surgery now on the market. It is also expected to face competition from Verb Surgical, a startup backed by Johnson & Johnson and Alphabet Incs Google that is developing its own robot. Medtronics offering will aim to lower costs associated with robotic surgery. It is costly today. We are going to be looking to eliminate that as a barrier, Hanson said. Minneapolis-based Medtronic has 150 employees working on its robotic system across locations in Massachusetts, Connecticut, Colorado, and Germany, he added. The company, whose products range from pacemakers and heart valves to spinal implants, also announced plans to introduce its first hip and knee replacement devices as part of an Orthopedic Solutions offering for hospitals adjusting to a new Medicare bundled payment program. The Medicare plan ties reimbursement to quality and spen Continue reading >>
Medtronic Launches Low-cost Hip And Knee Program, Forecasts Surgical Robot Revenue By Fy 2019
Medtronic Launches Low-Cost Hip and Knee Program, Forecasts Surgical Robot Revenue By FY 2019 Medtronic expects "material revenue" from its new robotic surgery business in fiscal year 2019, company executives said during Medtronic's investor day presentation held recently. They also unveiled plans to offer value-based hip and knee replacement devices, and confirmed submission for FDA approval of the first "hybrid closed loop" insulin pump. Bryan Hanson, president of Medtronic's Minimally Invasive Therapies Group (MITG), said 150 employees are now working on the companys surgical robots, which initially will roll out in India, reports Reuters . Medtronic is looking to compete with robotic surgery pioneer and leader Intuitive Surgical, the Verb Surgical joint venture of Johnson & Johnson and Verily, and a growing list of new players. Hanson said Medtronic's value proposition is lowered costs for surgical robots, which are generally more expensive than conventional surgical methods. "It is costly today. We are going to be looking to eliminate that as a barrier," Hanson said during the presentation, according to Reuters. Medtronic is utilizing the same approach for its new orthopedics venture: a low-cost knee and hip replacement portfolio tied to the new bundled payment model by the Centers for Medicare and Medicaid Services (CMS), designed to slash costs to these most common surgical procedures, which cost Medicare about $7 billion in hospital bills each year. The plan encourages hospitals to use less costly implants that result in target clinical outcomes, such as reduced readmission rates or shortened recovery duration. We dont consider these to be value products at all, said Geoffrey Martha, president of the Restorative Therapies Group, reports the Star Tribune. These Continue reading >>
Mazor Robotics Key To Medtronics Surgical Expansion
Welcome to the All-New Robotics Business Review! Mazor Robotics Key to Medtronics Surgical Expansion Medtronic is investing Mazor Robotics and plans to become the exclusive distributor of its Mazor X robotic guidance system. The deal is part of Medtronics moves to enter the competitive surgical robotics market. Medtronic PLC has made a multifaceted deal with surgical robotics provider Mazor Robotics Ltd. In May, Medtronic said it would buy 15 Mazor X systems by years end. Assuming that joint development and sales are successful, the company plans to become the exclusive distributor of Mazor Roboticss products in 2017. Medtronic , which has offices in Dublin and Minneapolis, is the worlds largest pure-play medical device maker. In the U.S. alone, there than 500,000 spinal implant surgeries per year, according to The Motely Fool . We do think a move like this from Medtronic could lend greater momentum to spine robotics adoption, said Daniel Antalffy , an analyst at Leerink Partners LLC. Medtronic also plans to take a 15 percent stake in Caesarea, Israel-based Mazor Robotics in three tranches . The first installment was $11.9 million for 4 percent of Mazors shares, and Medtronic has the option to cap the next two at $20 million each, for a total of more than $50 million. Caesarea, Israel-based Mazor has sold more than 110 of its Renaissance Guidance Systems. It said they have been used in more than 16,000 successful operations to date. The company has also reported strong international orders so far this year. Mazor Robotics plans to launch its Mazor X guidance system for spinal surgery in October. The Mazor X platform expands the field of spine surgery from trajectory guidance to assisting surgeons with a total patient treatment strategy, said Ori Hadomi , CEO of Mazor. Continue reading >>
Medtronic Buys Twin Cities Start-up Firm Responsive Orthopedics
Medtronic PLC plans to jump into the market for dependable, lower-priced knee and hip implants next year, after acquiring a Twin Cities start-up company that specializes in selling devices to hospitals in government cost-cutting programs. During a presentation to investors Monday, Medtronic executives revealed that they had acquired Minneapolis-based Responsive Orthopedics in a private deal with undisclosed terms. The deal is part of Medtronics overarching strategy to capitalize on the national push for greater value in health care purchasing. Its an area of obvious interest for us, Medtronic Chief Executive Omar Ishrak told investors at a presentation in New York City on Monday. A Medtronic spokeswoman said the Minnesota-run med-tech company has been a minority investor in Responsive Orthopedics since 2014. Led by industry veteran Doug Kohrs, Responsive Orthopedics was founded with an unusual vision in the med-tech world to sell lower-cost artificial knees and hips with streamlined size offerings and instrument sets. A more typical marketing strategy for the major orthopedic implant companies would be to innovate more features and models that can drive premium pricing. In a Star Tribune story last month, Kohrs said Responsive Orthopedics implants are intended exclusively for health care providers taking part in federal programs to reduce the costs of hip-and-knee procedures. Such bundling initiatives drive hospitals toward medical devices that can be purchased more cheaply but deliver the same quality of care. Hip and knee replacements are the most common inpatient surgery for Medicare patients, with more than $7 billion spent on 400,000 procedures in 2014 alone. But the average total cost of care and recovery ranges between $17,000 and $33,000 per patient. Medicares Continue reading >>
