November 6, 2015–“A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market”. In the Spinal Industry, after the Company market an implant, the organization carries out a set of activitiest that create value for its customers including Service, Surgeons Training, Sponsoring Congresses, Hospital support etc. At the end each Company competitive advantage and their products prices relies very much on the Added value provided to the customers (Surgeons and Hospitals).
For many years, one of the most important added values provided from Spinal Companies has been Surgeons Education in many cases focused only on scientific issues as in the case of AOSpine or in the more modest Argos Spine.
Last week, we received the announcement of the cancellation of the ARGOS 2016 Symposium due to financial issues (http://www.argospine-congress.com). For 19 years (this January would be the 20th meeting) the Argos Association was supported by a few number of Companies leaded by French Companies and recently by Alphatec Spine and DePuy-Synthes. But this this year that sponsorship has not been possible.
ARGOS has been an internationally recognised Association with an spirit of scientific independence from the Spinal Industry. Which Company would financially support a Congress where it is not clear the return of the investment? Now, it is not easy with spinal implants prices decreasing dramatically.
Our Conclusion:
The Spinal Market or industry is not only about implants but training, education and service. That added value can be provided by manufacturers because they have margin to do it. When Hospitals and Administrations cut off prices beyond common sense, they are at the same time eliminating many investments from the Companies in Surgeons Education and Scientific events.
Who will pay for that? Will price reductions remove added value from the market? Would the Spinal Surgery be affected from a lack of support from the manufacturers?
The Companies are willing to invest money and provide an added value with Education when that is a competitive advantage that give results and profits. If not, only marketing events will survive and independent Scientific forums (as Argos Spine) will disappear.
About ArgoSpine
The Association ArgoSpine was founded in 1996 under the name “Argos” by reference to “Association européenne des Groupes d’études pour l’Ostéosynthèse rachidienne” and “Association of European Research Groups for Spinal Osteosynthesis” on the initiative of surgeons looking to encourage applied research in the area of spinal surgery.In order to further public health and in accordance with applicable laws, the aims of the Association are as follows :
– Promoting the knowledge by all means of techniques for the treatment of spinal disorders and the various means for the objective assessment of the effectiveness of the treatment
– Fostering pure and applied research in the area of the treatment of spinal disorders