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Vertos Medical's Blue Ocean Opportunity

Executive Summary

Given how many start-up companies and their investors have rushed into spine over the past decade or so, one might assume that getting spine surgeons to adopt new technology is relatively easy. - But less than five years after the launch of the first artificial disc was supposed to usher in the era of motion preservation, surgeons are still arguing for the benefits of fusion over disc replacement--underscoring the tension between new devices and traditional therapy options. But one start-up, Vertos Medical Inc., has found a creative way around the adoption issue. Promoting a novel approach to spinal stenosis, Vertos' solution is to focus on the patient, rather than the surgeon, treating stenosis earlier in the continuum of care by reaching out to a new clinical specialty, interventional pain physicians.

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Device Investors Look for Gains in Pain

In 2009, investors quietly invested in seven different start-ups develoipng devices for pain. Why the sudden interest? Interventional pain is on the rise as a specialty, large numbers of patients with chronic pain need better therapies, and relative to other emerging device sectors, pain offers large markets but lower clinical, regulatory and market risks.

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