LDR: Betting on Cervical
Though the company's founders played a crucial role in the development of the first artificial lumbar disc replacements, LDR has itself always taken a somewhat conrtrarian view toward the promise of lumbar disc replacement. Rather the company is betting on the promise of cervical discs, while rounding out its lumbar line with more traditional fusion approaches.
You may also be interested in...
Spine company LDR Holdings Corp. helped signal a turnaround in the spine industry with a successful IPO in October, netting $80 million. Privately, venture capitalists are reporting greater interest in their companies from Wall Street bankers, but should LDR’s success be seen as a strong signal for devices?
SpinalMotion is one of a small number of second-generation companies that hope to follow in the path of the first artificial disc companies, with novel technologies and a more measured assessment of the market, especially the lumbar disc segment. The ultimate challenge for SpinalMotion may not be gaining market share, but finding an appropriate exit for its investors.
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.