Why Orthofix has acquired Spinal Kinetics? Which are the M6 cervical disc competitors?

Orthofix International  announced last March 15,  that it has entered into a definitive agreement to acquire Spinal Kinetics Inc. The agreement included $45 million in cash closing consideration plus up to $60 million in contingent milestone payments related to U.S. Food and Drug Administration approval of the M6-C cervical disc and the achievement of trailing twelve-month sales targets of $30 million and $50 million. With this acquisition, Orthofix will complete their spinal products portfolio with cervical and lumbar artificial discs.

Why Orthofix has acquired Spinal Kinetics?

1.- The ADR market growth: According to research from GlobalData, the North American artificial disc replacement (ADR) market – Canada, Mexico, United States –will achieve $614.5 million by 2023, growing at a compound annual growth rate of 12.2%.Cervical artificial disc market share held over 65% of total revenue and is expected to surpass USD 3 billion by 2024. Business growth will come from the rising prevalence of cervical disc degenerative disease, the increasing number of cervical artificial discs surgeries and the availability of more number of products.

2.-The Key drivers of the market include:

• Growing of the aging population that is driving the expansion of degenerative spinal diseases and disorders.
• Advantages over traditional spinal fusion procedures:Spinal fusion is currently considered the gold standard in degenerative disc disease treatment, accomplishing both deformity correction and stabilization. However, sequelae associated with a successful fusion procedure have driven attention towards non-fusion technologies, including artificial disc replacement (ADR), which are expected to challenge the growth of spinal fusion. ADR technologies are marketed for both the cervical and lumbar spine, and share the common goal of replacing the patient’s disc while often differing in their designs and materials. Compared to lumbar ADR, cervical ADR receives wider popularity at present due to more widely appreciated clinical effectiveness and growing demand for two-level cervical ADR procedures.

3.-FDA approvals and Improving the reimbursement scheme:

• North America is a major contributor to the global market for ADR, driven by an improving reimbursement scheme for cervical disc replacements and the recent FDA approval for another two-level cervical system. Fast growth is also expected in South America, as spine companies outside this region ramp up their market penetration efforts to promote cervical disc replacement and patients seek out more modern healthcare treatments. Although pricing pressures are being experienced in South America, the effects of these pressures are more strongly felt in other regions, stemming potential market growth. The developing markets in Asia-Pacific and the Middle East and Africa still rely heavily on patients to pay out of pocket for medical treatment, restricting access to expensive procedures such as ADR. Additionally, economic frailty in Europe has forced healthcare providers to focus on cost savings, again limiting the use of costly ADR systems.Despite these obstacles, medium to high growth is expected in ADR markets around the world as patients demand an improved quality of life. Preservation of spinal motion, less recurrence of reoperation, and the minimally invasive nature of the ADR procedure are appealing factors to patients and physicians alike, and are expected to drive adoption over the next five years. Although the market for spinal fusion will remain the most lucrative spine market in 2023, the market also has the potential for spinal nonfusion technologies such as ADR to surpass fusion as the gold standard treatment

Which are the M6-C cervical disc competitors?

Learn about 45 competitors: https://thespinemarketgroup.com/category/adr/

The leading players in the global ADR market are large multinationals with an established presence in the spine markets. DePuy Synthes and Medtronic are the chief players in the space, followed by Globus Medical and Zimmer Biomet Inc. Beyond these major players, the current market includes small- to mid-sized companies, many of which are focused on novel spine or spinal nonfusion devices. As the ADR market continues to attract new entrants, GlobalData expects to see an increase in mergers and acquisitions activity as the large players seek to expand their current product offerings through smaller players with innovative technologies. Please visit the ADR section to learn more about the 46 market cervical discs that compete in this market: https://thespinemarketgroup.com/category/adr/