Artificial Discs: Where Do We Go from Here?

Artificial discs are experiencing a cooling trend owing to an expected reduction in CMS reimbursement for both cervical and lumbar disc replacement. Many motion preservation companies are reaching critical regulatory milestones that will likely require a step-up in funding to conduct the large scale clinical studies needed to gain PMA approval. Today, companies in this sector are faced with the troubling task of either scaling back R&D programs to conserve cash or raising additional capital to take the next steps. This article first appeared in the June 2008 issue of In Vivo.

by Sharon O’Reilly

With artificial discs experiencing a cooling trend due to an expected reduction in reimbursement for both cervical and lumbar disc replacement, the spotlight on spine arthroplasty among investors is starting to wane. Amidst all the hype and overzealous projections that characterized this industry five years ago, fueled by acquisitions of artificial disc technologies by the four major players—Johnson & Johnson’s DePuy Synthes, Medtronic PLC, Stryker Corp. and Synthes Inc.—totaling well over $1 billion, capital from the investment community started pouring into this space

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