SpineVision: Meeting the Competition Head On
Spine surgery has gone from the pariah of the orthopedic industry to that sector's fastest growing segment. Large companies have looked to capitalize on spine's rapid growth by acquiring their way into this space, a pattern of consolidation that has left the industry without a major pure play spinal company. SpineVision is looking to fill that void by developing a complete line of spinal products, starting with innovations on core technology, rather than relying on a typical start-up strategy of focusing on a particular device or clinical niche. The company's strategy will bring it immediately into competition with the market leaders' well-established product lines. But SpineVision is counting on experienced management and the current frustration among spine surgeons resulting from recent industry consolidation to attract physicians' attention.
You may also be interested in...
Much of the innovation in spine over the past decade has aimed at replacing fusion, the standard of care. SpineGuard’s novel sensor technology is betting on fusion’s long-term prospects, helping patients and surgeons by making the procedure safer.
Medtronic recently declared that InFUSE, the company's blockbuster spine bone graft product that provides the growth factor rhBMP-2 as part of a lumbar fusion cage, was well on its way to becoming standard of care in spine surgery. The company's success has fueled interest in a plethora of potential entrants into the biologic bone formation market.
In Europe, one of the historical obstacles to company creation has been a lack of venture capital funding. Not any longer. Abingworth's life-science-focused fund, Abingworth Bioventures IV, raised $350 million; Schroder Ventures Life Sciences' fund International Life Sciences III was $402 million; and the latest life sciences fund of Techno Venture Management was $450 million. These funds now rival their counterparts on the East Coast or the Bay area of the US. Now, the Paris-based venture capital firm Sofinnova Partners has closed its fifth fund, at €385 million ($516 million). Sofinnova Capital V is perhaps the largest European fund dedicated to early-stage investing in life sciences and IT, with a focus on European companies.