I met an orthopedic entrepreneur who did every thing right. This Founder/CEO was in the right space at the right time, but missed a business detail. So he failed.
Generally right, but specifically wrong.
The same Founder/CEO shared a story about a distant relative with a massive farm in Nebraska, strategically positioned along the proposed path of the new transcontinental railway. Anticipating a windfall, the family expanded their land holdings to ensure the railway’s passage through their property. Yet, in a surprising twist, the railway planners rerouted the line 30 miles away, bypassing the farm entirely.
Generally right, but specifically wrong.
For an ortho example, let’s look at Amedica. The founder, AK, introduced silicon nitride into orthopedics, a material with game-changing applications in joint articulation. Amedica was his startup with the ambition to revolutionizing hip replacements with a zero-debris, indestructible ceramic material. Amedica had the makings of a billion-dollar enterprise but was blindsided by an untenable regulatory pathway for articulation applications for hips. Today, the company is rebranded as SINTX, has a valuation of merely $3M.
Generally right, but specifically wrong.
For a spine example, let’s look at Intrinsic Therapeutics. The company was founded to solve a real clinical problem for patients suffering from recurrent disc herniations. Intrinsic created a device that works. It involve a bone spike with a plug called the Barricaid Annular Closure device. Problem solved. However, Intrinsic underestimated three roadblocks: 1/ laborious Class III pathway, lack of reimbursement codes, and driving adoption for a preventative implant. After raising $330M in funding over 15 rounds the company has yet to achieve sales traction to match the investment.
Generally right, but specifically wrong.
For a total joint example, let’s look at Conformis. They were “the first” custom implant company at scale. ConforMIS was founded in 2004 and went public in 2015. In its 15th year of existence, the company lost $24M on $69M in sales. Conformis has a COGS problem. Conformis was acquired last year by Restor3d for $16M after raising $523M.
Generally right, but specifically wrong.
I worry about the current landscape of orthopedic startups venturing into the hot new innovative spaces like additive manufacturing, AI, robotics, augmented reality and operating room ecosystems. These promising startups stand on the cusp of transforming orthopedics forever and having great financial outcomes, yet the lesson remains—being generally right is not enough.