I have watched many orthopedic companies create self-imposed difficulties for their business… or headwinds. They obviously don’t create headwinds on purpose.
It got me thinking.
How do Orthopedic device companies accidentally create these headwinds?
Well, they just do these things.
- Create an implant system with lots of permanent instrument trays that have to be cared for and shipped around the world (eg: all major total joint manufacturers).
- Raise a lot of money and hire too many people before the business can support the payroll (eg: Conformis)
- Loose control of their cash flow with steady income and runaway costs.
- Create a business culture with too much turnover so you have loss of institutional knowledge and you are always retraining.
- Design and market an implant system that needs lots of servicing in the field.
- Make an acquisition with high hopes only to find out its a drag on the business in the future.
- Bring a new product to market before you have a reimbursement code (eg: Intrinsic Therapeutics).
- Create implants from a unique implant materials that are not common in the industry or with suppliers.(eg: MiRus, Sintx fka Amedica).