VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 week in review 4 Stryker’s MacMillan Gone?! ♦ The number one news story at the American Academy of Orthopaedic Surgeon’s annual confab was not a paper or product but rather a single person—former Stryker Chairman of the Board and CEO, Stephen MacMillan. For “family reasons” he and Stryker agreed to part. What happened? 8 Inside the Wright DPA Meltdown: Part II ♦ Three wrongful termination lawsuits offer an unprecedented look inside the company’s DPA troubles. Last week OTW looked at allegations against the Wright Board. This week we look at the specific complaints about Wright’s compliance program. Fasten your seatbelts. It ain’t pretty. 12 Three Rounds Over Dual Poly Liner: Stulberg vs. MacDonald ♦ “Dual mobility poly is more stable and has long-term data to back it up,” argues Dr. David Stulberg. “This construct doesn’t make sense,” counters Dr. Steve MacDonald. “I could find no published wear data in the literature.” 16 On (and Off) the Record ♦ “Will orthopedic training programs close?... Infectious complications and timing of anti TNF Meds…what’s going on with manual skills training for residents?...St. Vincent Team Wins Stinchfield Award…and more. breaking news 19 Unique Israeli Company CartiHeal Gets CE Mark .......................................... FDA Clears Two New Clavicle Repair Technologies ............................................................ Football and Alzheimer’s – A Connection? ............................................................ Award Winning Israeli Spine Company Gets 510(k) Clearance ............................................................ TiGenix: Green Light for RA Dosing ............................................................ Smith & Nephew Settles Greek Bribery Charges ............................................................ ISTO and Zimmer Announce Phase III Study of DeNovo ET For all news that is ortho, read on. 1-888-749-2153 | www.ryortho.com 2 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Orthopedic Power Rankings Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies THIS WEEK: AAOS, the annual meeting for the orthopedic community, was stronger than we expected with more attendees and more activity in the exhibit hall. We’re talking standing room only in booths. No blockbuster innovations, but we did see many smart, incrementally better products. Bottom line, upbeat and hopeful. LAST WEEK COMPANY 30-DAY PRICE CHANGE COMMENT 1 1 Zimmer 27.75% 10.02% Little noticed by investors, ZMH’s inventory declined even as sales rose last quarter. Frees up more cash. 2 2 Orthofix 14.72 13.07 Consensus on Wall Street is that OFIX is trading about 20% below where it should be. 3 3 Stryker 25.23 0.98 MacMillan’s departure was a shock. But SYK’s strong and high quality middle management will carry the firm forward. 4 5 Medtronic 28.63 1.38 New uses for deep brain stimulation include Alzheimer’s and other memory disorders. Up one spot. 5 10 Integra LifeSciences 14.81 27.68 In two categories, PE to Growth and Future PE, IART is lowest in ortho—2nd lowest PE and 3rd lowest PSR. 6 4 NuVasive 7.26 10.62 This week’s downgrade by Robert W. Baird probably reflects profit taking after NUVA’s big, recent run up. 7 7 Smith & Nephew 22.80 7.16 Excellent AAOS with several interesting new products including PICO, Healicoil and POLARCUP. 8 6 Conmed 9.65 7.22 Introduced its new line of sports medicine products including MTF-based materials at AAOS. 9 9 Exactech 7.69 1.77 Extremities and hips are the big growers right now at EXAC. Spine…not good. 10 8 Johnson & Johnson 26.33 (0.81) While JNJ may be a reliable dividend growth stock, investors need a new catalyst to get excited. RANK TTM OP MARGIN 1-888-749-2153 | www.ryortho.com 3 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Robin Young’s Orthopedic Universe WORST PERFORMERS LAST 30 DAYS TOP PERFORMERS LAST 30 DAYS COMPANY 1 2 3 4 5 6 7 8 9 10 Integra LifeSciences TranS1 Bacterin Intl Holdings Orthofix NuVasive Zimmer Holdings Kensey Nash Conmed Smith & Nephew CryoLife SYMBOL IART TSON BONE OFIX NUVA ZMH KNSY CNMD SNN CRY PRICE MKT CAP $29.98 $2.27 $2.74 $40.97 $15.62 $60.84 $22.78 $28.80 $49.84 $5.66 $804 $62 $111 $754 $660 $10,901 $198 $804 $8,913 $159 30-DAY CHG 27.68% 19.47% 17.09% 13.07% 10.62% 10.02% 8.17% 7.22% 7.16% 6.99% COMPANY 1 2 3 4 5 6 7 8 9 10 LOWEST PRICE / EARNINGS RATIO (TTM) COMPANY 1 2 3 4 5 Medtronic Integra LifeSciences Zimmer Holdings Johnson & Johnson Stryker SYMBOL MDT IART ZMH JNJ SYK 1 2 3 4 5 Integra LifeSciences RTI Biologics Inc Orthofix Stryker Zimmer Holdings SYMBOL IART RTIX OFIX SYK ZMH PRICE MKT CAP P/E $39.73 $29.98 $60.84 $64.60 $53.54 $41,929 $804 $10,901 $176,413 $20,488 11.93 12.39 12.65 12.92 14.55 PRICE MKT CAP PEG $29.98 $4.01 $40.97 $53.54 $60.84 $804 $221 $754 $20,488 $10,901 0.49 0.94 0.99 1.35 1.35 1 2 3 4 5 1 2 3 4 5 Symmetry Medical Alphatec Holdings Integra LifeSciences Conmed Exactech SYMBOL SMA ATEC IART CNMD EXAC PRICE $7.50 $1.98 $29.98 $28.80 $17.26 MKT CAP $272 $177 $804 $804 $227 SMA RTIX MAKO ARTC TRNX JNJ WMGI SYK MDT EXAC MKT CAP $7.50 $4.01 $32.89 $30.25 $19.61 $64.60 $16.65 $53.54 $39.73 $17.26 $272 $221 $1,370 $832 $770 $176,413 $655 $20,488 $41,929 $227 30-DAY CHG -9.09% -5.42% -3.80% -1.53% -1.21% -0.81% 0.60% 0.98% 1.38% 1.77% COMPANY SYMBOL PRICE MKT CAP P/E Wright Medical RTI Biologics Inc NuVasive Exactech Synthes WMGI RTIX NUVA EXAC SYST.VX $16.65 $4.01 $15.62 $17.26 $170.87 $655 $221 $660 $227 $20,295 35.43 26.73 23.31 21.85 21.63 HIGHEST P/E TO GROWTH RATIO (EARNINGS ESTIMATES) COMPANY 1 2 3 4 5 LOWEST PRICE TO SALES RATIO (TTM) COMPANY Symmetry Medical RTI Biologics Inc MAKO Surgical ArthroCare Tornier N.V. Johnson & Johnson Wright Medical Stryker Medtronic Exactech PRICE HIGHEST PRICE / EARNINGS RATIO (TTM) LOWEST P/E TO GROWTH RATIO (EARNINGS ESTIMATES) COMPANY SYMBOL SYMBOL NuVasive Wright Medical CryoLife Johnson & Johnson Smith & Nephew NUVA WMGI CRY JNJ SNN PRICE MKT CAP PEG $15.62 $16.65 $5.66 $64.60 $49.84 $660 $655 $159 $176,413 $8,913 3.32 3.16 2.38 2.19 2.14 HIGHEST PRICE TO SALES RATIO (TTM) PSR 0.75 1.03 1.10 1.13 1.19 COMPANY 1 2 3 4 5 SYMBOL TiGenix MAKO Surgical Synthes Bacterin Intl Holdings Tornier N.V. TIG.BR MAKO SYST.VX BONE TRNX PRICE MKT CAP PSR $0.95 $32.89 $170.87 $2.74 $19.61 $87 $1,370 $20,295 $111 $770 139.39 30.93 5.50 4.22 3.39 PSR: Aggregate current market capitalization divided by aggregate sales and the calculation excluded the companies for which sales figures are not available. Advertise with Orthopedics This Week Click Here for more details or email [email protected] Tom Bishow: 410.356.2455 (office) or 410.608.1697 (cell) 1-888-749-2153 | www.ryortho.com 4 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Stryker’s MacMillan Gone?! By Robin Young Morguefile and jppi he number one news story at the American Academy of Orthopaedics Surgeon’s (AAOS) annual confab was not a paper or a product but rather a single person—former Stryker Chairman of the Board and CEO, Stephen MacMillan. The successor to legendary Stryker CEO John Brown, Stephen MacMillan is no longer employed at Stryker—eight and a half years after his arrival as its new President and Chief Operating Officer. Stryker’s press release regarding MacMillan’s departure came on the second day of the AAOS meeting and it said, in part: T “The Board of Directors of Stryker Corporation (NYSE: SYK) announced today that Stephen P. MacMillan has resigned as Chairman, President and Chief Executive Officer for family reasons, effective immediately. Curt Hartman, Vice President and Chief Financial Officer, has been named Interim Chief Executive Officer and William U. Parfet, Lead Independent Director, becomes Non-Executive Chairman. The Board has begun a search for a permanent successor to Mr. MacMillan and will consider both internal and external candidates.” On the floor of the convention, MacMillan’s departure was by far the #1 point of discussion. And since a large portion of the orthopedic community was together in one place updates and rumors spread rapidly. At the core of all the rumors was one story—that MacMillan, who is married, was embroiled in overly public marital discord. From everything OTW has been able to learn, that story is essentially correct. Advertisement 1-888-749-2153 | www.ryortho.com 5 Reaction From Around the AAOS Water Cooler Reaction from the floor of the conference was mildly critical of Stryker’s Board but ran the gamut from blistering to forgiving in its assessment of MacMillan. There were no positive statements for the entire mess. Here are some of the more common reactions from the AAOS convention floor: 1. “All the CEO’s do it, why make a big deal.” 2. “Extremely distractive to Stryker employees trying to promote new products.” 3. “Why did the Board announce during AAOS? They should have waited.” 4. “MacMillan failed the CEO intelligence test.” 5. “In Europe this would have been no big deal.” 6. “MacMillan should be judged as a manager, not on his personal life.” 7. “The analysts knew and didn’t care so why create the disruption.” VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 pedics. How it handled this problem is probably an indication that Stryker remains an Eagle Scout type company. CEOs are as flawed as any mortal— although they can develop high levels of hubris. Here is how other firms handled errant senior executives. Hewlett Packard ousted its CEO Mark Hurd on August 6, 2010 for not only having an affair with a former contractor, but also helping her get paid for work she didn’t do and contributing to a corporate atmosphere where standards of business conduct were violated. code decreed that Boeing employees wouldn’t engage in any conduct or activity that might raise questions as to the company’s honesty, impartiality or integrity. Ironically, it was Stonecipher who had established the ethics code and insisted that all Boeing employees follow it. Stonecipher had joined Boeing to help reestablish that firm’s reputation following the 2003 ethics scandal involving Boeing and U.S. Air Force contract for aerial refueling tankers. And then, of course, in the political arena from Herman Cain to Congressman Anthony Weiner to “wide-stance” Senator Larry Craig, ethically challenged office holders/candidates are frequently hounded into retirement. Boeing fired its CEO Harry Stonecipher, 68, in 2005 for having an affair with a female executive which violated the company’s code of conduct. Boe- Stephen P. MacMillan ing’s chairman decided that Stonecipher’s affair compromised his ability One Michigan-based news outlet OTWPrintAd_All Ads_5x4.25:Layout 1 s1/27/12 AM Pagelast 4 week that MacMillan and to lead the company. Boeing’ ethic’s11:50reported Apparently, the news that Macmillan was dealing with “family reasons” was known to a growing circle of people in and around Kalamazoo from around Christmas time to just before the Board announcement. We’ve Seen This Movie Before CEOs whose personal lives prompt board action are not new. But a Stryker CEO falling into such a situation is a surprise. As one person who knows former Stryker CEO John Brown well put it, “I don’t think John Brown had a prurient thought even when he was sleeping.” Stryker Corporation has as straight arrow a reputation as exists in ortho- Advertisement 1-888-749-2153 | www.ryortho.com 6 his wife Amy were in the process of a filing or getting a divorce. MacMillan’s wife, Amy MacMillan, is an adjunct Assistant Professor and Instructor of Marketing at Western Michigan University. It turns out that she does have financial ties with Stryker and earned $458,000 from the company in 2010 as director of a catering company. MacMillan earned a B.A degree in Economics from Davidson College and is a graduate of Harvard Business School’s Advanced Management Program. MacMillan began his career as a brand manager for Procter & Gamble before moving to Johnson & Johnson where he spent 11 years in a series of roles both in the U.S. and in Europe. His principal accomplishment was his role in rejuvenating the Tylenol and Imodium brands. When he left JNJ he VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 was serving as President of Johnson & Johnson-Merck Consumer Pharmaceuticals a joint venture between J&J and Merck & Co. which focuses on marketing non-prescription switches of Merck products. From JNJ, MacMillan moved to Pharmacia Upjohn where he served as Sector Vice President, Global Specialty Operations for Pharmacia Corporation. He was 36 years old at the time. MacMillan’s appointment continues the succession plan he initiated when Mr. MacMillan was hired, adding: “This transition has been very smooth. Steve has been well accepted at Stryker and we are confident that he is the right leader to take the Company forward.” As CEO of Stryker Corporation, MacMillan earned $2.84 million in 2010. He was 48 years old when he left. Ethics and Orthopedics MacMillan joined Stryker in 2003 as the company’s new President and Chief Operating Officer and heir apparent to retiring CEO John Brown. In January 2005, MacMillan was promoted to CEO and in 2010 he was named Chairman of the Board. At the time Stryker hired MacMillan, then CEO John Brown noted that Mr. One of the central themes in orthopedics over the past decade has been ethics. The high point of these issues came four and a half years ago, September 2007, when four orthopedic companies agreed to pay $311 million to settle a claim with the Department of Justice (DOJ) regarding financial relationships and consulting agreements with Advertisement 1-888-749-2153 | www.ryortho.com 7 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 surgeons which, according to the DOJ, violated federal anti-kickback statutes. Stryker was not one of the companies that had to pay a fine. In addition to the money, each company agreed to implement new corporate compliance procedures and 18 months of oversight by a federal monitor appointed by the Department of Justice. The four companies were Zimmer Holdings, Inc., DePuy Orthopaedics, Biomet, Inc. and Smith & Nephew. The DOJ accused the four companies of using consulting agreements with orthopedic surgeons to induce them to use a particular company’s joint replacement device. Stryker, by contrast, escaped both the fines and the DPA. Stryker, the fifth company involved in the investiga- tion, voluntarily cooperated with the Attorney’s office before any of the other companies. Because of its cooperation, Stryker was able to execute a NonProsecution Agreement which required the company to implement the same reforms imposed on the other companies including 18 months of federal monitoring. Complying with stricter and monitored rules regarding consulting agreements and such activities as buying dinners or even coffee for surgeons has been difficult for all levels of each organization. Every company has lost business because of these rules. But one company from among the largest firms in orthopedics was treated differently and more favorably by regulators—that was Stryker. Why Did Stryker’s Board Take This Long? Asking the boss to leave is very hard. Particularly when the boss, as in this case, had led his company through particularly difficult times. Stryker’s record under MacMillan is good. Forbes listed Stryker as one of the 100 best firms to work for. Both in terms of sales growth and profits, Stryker has outperformed its peers. In 2011, for instance, sales grew 13.5%, profits rose nearly 12%. Over the past 18 months Stryker has made several key strategic acquisitions and amassed a cash balance in excess of $3.4 billion. Advertisement But beyond the corporate aspects, Board members were personally fond of MacMillan. So much of the discussion over that past few weeks, we can imagine, has been about dealing with the Board’s attachment to MacMillan. Three of Stryker’s Board members are CEOs themselves. Then there’s the real- ization that they may have misjudged MacMillan. Telling the boss that he has to go, or allowing the boss to stand down, is a process that involves, in the case of companies like Stryker, lawyers and often, outside consultants. When, as is the case here, the events that have created the need for separation were unexpected and out of character, it can literally take months of moving through denial, guilt, and anxiety before there’s a collective agreement that the Chairman and CEO has to go. Once a board has decided that a CEO must resign, then there are further debates about what to say and what the succession plan will be. No doubt, Stryker’s Board engaged in many anxious discussions regarding employee, stakeholder, and shareholder and press concerns and likely reactions. The entire process is an ordeal. But, as if often the case, once the CEO was gone, there can be a sense of liberation. People can get back to work. Stryker’s Message With leadership at these levels come extraordinarily hard and difficult requirements. The orthopedic industry is under such scrutiny from payers, FDA and the Department of Justice that organizations—top to bottom—are being asked to conduct themselves in the highest ethical manner. Yes, we are all human and flawed. But leaders must set the example. Stryker’s Board of Directors did exactly that. Good job. ♦ 1-888-749-2153 | www.ryortho.com 8 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Inside the Wright DPA Meltdown: Part II By Walter Eisner he meeting was unprecedented. T On February 11, 2011, a senior Wright Medical Technology, Inc. executive was warning members of the company’s Board of Directors’ Corporate Governance Committee that the company’s compliance program had “serious continuing problems and deficiencies.” Those problems eventually resulted in a 12-month extension of the company’s Deferred Prosecution Agreement (DPA) with the Justice Department (DOJ). That executive was Cary Hagan, head of the company’s operations in Europe, Africa and the Middle East. Hagan however, was not the only Wright executive who had warned senior company leaders of serious problems with the DPA. Wrongful termination lawsuits filed in early January 2012 by Hagan and two other former Wright executives, Frank Bono and Alicia Napoli, allege that they were terminated for raising those warnings. Last week we reported on certain allegations from Hagan’s lawsuit against the company’s Board of Directors. This week we look at the Bono and Napoli lawsuits and specific problems identified by Hagan, Bono and Napoli over the performance of Lisa Michels, the company’s chief compliance officer. Frank Bono Frank Bono began his career with Wright in 2007 as the company’s senior vice president, research and develop- The Hagan Complaint/RRY Publications LLC ment. According to his lawsuit, he received “sterling” performance reviews during his tenure. On April 1, 2009, Bono and Wright executed a Separation Pay Agreement (SPA) and on January 8, 2010 the title of senior vice president and chief technology officer was added to his name. According to Bono’s lawsuit, Wright gave Bono an unsigned letter of termination on April 4, 2011, purporting, says Bono, to terminate his employment “for cause.” Pursuant to the letter, Bono claims that the Board decided to terminate him for three reasons: •First, that he allegedly “engaged in actions that were directly inconsistent with the requirements of the Company’s compliance program;” •Second, that Bono allegedly was “less than candid and forthcoming with the Board and its committee about facts related to compliance;” •Third, that Bono allegedly “created a backdated memo intended to mislead certain surgeon customers about facts related to the company’s compliance efforts.” Bono disputes the allegations and claims he did nothing to give “cause” for his termination. In fact, he claims he was terminated for raising warnings about the ability of Michels to ensure the company’s compliance with the DPA. He said he even raised the concerns with the federal Monitor. He claims raising those concerns were a “substantial” factor in the decision to terminate him. 1-888-749-2153 | www.ryortho.com 9 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Defamation After his termination, he says the company published numerous statements that are injurious to his reputation and ability to secure future employment. The statements included that he was “fired” or “terminated” because he “failed to exhibit appropriate regard for Wright’s ongoing compliance program.” He says Wright knew these allegations were false and as a result of the defamatory statements, impaired his reputation and standing in the community and has caused him personal humiliation, mental anguish, and suffering. Alicia Napoli Napoli began her career at Wright in April 2008 as vice president, clinical and regulatory and claims in her suit that she regularly received excellent performance reviews. On April 1, 2010 she also executed a Separation Pay Agreement with the company. On March 10, 2011, Napoli said she received a reprimand letter “purporting to ‘document the implications related to [an] investigation of reported compliance violations by Napoli.’” 7th Annual Stem Cell Summit The noted violations related to the company’s compliance hotline. She says the letter stated that it was not believed that she committed any violations of law. She claims the letter was rife with factual errors and misstatements as to Wright’s policies and devoid of anything that Napoli did wrong. She was however, stripped of certain job responsibilities. Final Notice She claims every action that she took was sanctioned by Lisa Michels and Ray Coles, another Wright official, or was in strict compliance with the existing processes, policies, practices and procedures in place at Wright at the time. If you haven’t already saved the date of February 21, 2012, mark your calendar now. And if you want to ensure your spot at 2012’s Stem Cell Summit register today! www.stemcellsummit.com Advertisement Threats of Professional Ruin On May 3, she claims she was given an unsigned letter of resignation. She said she was told her that if she didn’t sign it she would risk termination and “pro- fessional ruin through negative media.” She characterized Wright’s actions as “extortionist and outrageous conduct.” Like Bono, Napoli claims she also raised concerns to Wright’s Board of Directors 1-888-749-2153 | www.ryortho.com 10 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 WE’VE ADVANCED THE NATURE OF BONE. A llo S tem ® Cu be AlloStem ® Morsel i zed Al l oStem ® Stri p Natural bone is a miracle. AlloSource has discovered a way to capture the essential qualities of natural bone in a cellular allograft tissue. AlloStem combines partially demineralized bone with adult mesenchymal stem cells to create an allograft tissue that is a natural scaffold to support new bone formation. All in a tissue with superior handling properties. AlloStem. It’s an advancement of which nature would approve. For more information, please visit allosource.org or call 720. 873. 0213 Advertisement about the quality of Wright’s compliance program and about Michels’ ability to ensure Wright’s compliance. Raising those concerns were, according to Napoli, a “substantial” factor in Wright’s decision to terminate her. Complaints Against Michels What were some of those specific concerns noted in the lawsuits? Hagan says in his suit that he was responsible to help structure and implement “much needed” regulatory compliance improvements and safeguards that were required by the DOJ. He had to work through and with Michels. On December 2 and 3, 2010, Hagan and his key colleagues in Compliance trav- elled from Amsterdam to Wright’s main office in Tennessee for the sole reason of meeting with Michels about “serious compliance issues he had identified and about which he was concerned.” Hagan says he had previously attempted to bring these issues to Wright through Michels and others and on May 5, 2010 began documenting those attempts in serial meeting minutes. Those minutes, claims Hagan, show who was or was not present at meetings and meetings cancelled by Michels. He says the meetings were scheduled by Eric Stookey, Wright’s VP of commercial operations or Gary Henly, the CEO. “Despite her poor record of attendance, Ms. Michels later asked that she appear on Wright’s corporate records as the scheduler of these discussions because it ‘looked better’ to the Monitor,” alleges Hagan. He says the meetings then stopped. Hagan says that a specific series of meetings between himself and Michels which were intended to take place over that time were “carefully, specifically and well-in-advance calendared. Michels failed to attend all but one of these meetings and arrived at that meeting significantly late and left early.” He says Michels “generally ignored” existing concerns regarding compliance issues and his requests for her assistance. Hagan said he was concerned about Michels’ failure to attend the meetings and her “overall lack of response and 1-888-749-2153 | www.ryortho.com 11 concern” to compliance matters he was presenting. Those matter included clarification of general unresolved compliance issues in his territory—general clarifications such as when would meetings resume? Which national codes were to be followed? Questions about “Medical Education and Training Event Policy” One of the education and training event policy questions identified in Hagan’s lawsuit involved, he claims, one “absurd” reason given for his termination by the company. And that was that Hagan had improperly “allowed” European employers or distributors to pay the travel and lodging expenses for orthopedic surgeons to attend [an] AAOS meeting in the U.S. But, says Hagen, the decision to do so was made “after full disclosure to, and with the concurrence” of, not only Michels, but also Stookey. This “well documented” decision had been made in a series of multiple conference calls claims Hagan. Neither Michels nor Stookey were disciplined. In fact, he says Michels remained at the company for months after his discharge and Stookey remains at Wright in his senior leadership position. One former Wright employee tells OTW that he was present when Hagan and his team arrived from Amsterdam and Michels allegedly cancelled a meeting. “Cary [Hagan] was absolutely furious, because he and a few of his VPs had flown over just for the purposes of meeting with her. I overheard him venting to another one of our SVPs (Bill Griffin) about what had happened. I believe she had cancelled the day of the meeting,” says the former employee. He added that Michels “did things like that VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 quite frequently” and that it was well known in all levels of the company. with Wright’s Compliance Program was being properly managed was directly called into question.” Hagan Takes Concerns to Board When Michels failed to address his concerns, Hagan said he took his concerns to the Board of Directors. He also notified, in writing, Henley and Ed Steiger, Wright’s senior VP of human resources. Hagan said he personally requested and obtained a direct meeting with Board’s Corporate Governance Committee on February 11, 2011. His lawsuit states that he laid out examples of Michels’ “lack of management” of his group’s compliance program, who reported to Michels, for the preceding year. The lawsuit lists at least nine examples of Michels’ lack of management. Hagan says he described other “key incompetencies” in a document reviewed by the Board’s Governance Committee (which included David Stevens, John Miclot and Amy Paul) on February 11, 2011. Hagan says the entire European compliance process moved forward “without a single communication” from Michels who did not participate in “any” of the execution of their plan. He also said Michels failed to reply to “multiple” requests to review, edit, and comment on their efforts for which they had been assisted by the law firm of Hogan Lovells. Hagan said he was encouraged at first by the Governance Committee’s initial reaction to his report as the committee “seemed to recognize the repeated and dangerous neglect” by Michels. Yet, Hagan says, the Board failed to notify the Monitor of his concerns. “Incredibly,” says Hagan, instead of intervening positively to his “in-person” report, the Board “orchestrated a plan and scheme to deflect attention from itself and its compliance-related failure.” The Board may have been successful. After the executives were terminated, one analyst, BMO Capital Market’s Joanne Wuensch, wrote that it seems the company has taken a “zero-tolerance, take-no-hostages approach” to whatever it is that went wrong…we continue to recommend the stock and rate it OUTPERFORM.” The lawsuits of Hagan, Bono and Napoli will now work their way through the courts to a possible jury trial. Such a trial will likely uncover additional details of Wright’s DPA troubles. We know that the allegations made by the three former executives are only one side of the story and would expect Wright to launch a vigorous defense. ♦ The Boards Actions Hagan said Wright’s Board had “clear knowledge” of his report. He says the Board’s “belief that the DPA process 1-888-749-2153 | www.ryortho.com 12 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Three Rounds Over Dual Poly Liner: Stulberg vs. MacDonald By Elizabeth Hofheinz, M.P.H., M.Ed. ual mobility poly is more stable and has long-term data to back it up,” argues Dr. David Stulberg. “This construct doesn’t make sense,” counters Dr. Steve MacDonald. “I could find no published wear data in the literature.” “D This week’s Orthopaedic Crossfire® debate on total hip arthroplasty (THA) is, “Dual Poly Liner Mobility Optimizes Wear and Stability in THA.” For the proposition was S. David Stulberg, M.D. from Northwestern University in Chicago. Against the proposition was Steven J. MacDonald, M.D., F.R.C.S. of the University of Western Ontario; moderating is Clive P. Duncan, M.D., F.R.C.S.(C) of the University of British Columbia. Dr. Stulberg: “It’s a pleasure to celebrate with this audience and to remind Steve that the center of professional hockey now resides in Chicago, not Canada. Dual mobility is really a tripolar cup; it has a fixed, porous-coated metal device which articulates with a large polyethylene ball, into which is placed a bipolar 22 or 28mm head, so that you have motion at the two surfaces—and two bearing surfaces.” “The concept was introduced in France in the 1970s. As the cup initially moves the smaller femoral head impinges and then the large femoral head moves. The idea was that there were a number of issues that could predispose to instability, both in primary and revision situations. In England, dislocations account for 16% of revisions; in Australia it’s 15%. In Canada in 2006 they accounted for 16%; when I tried to get more recent data I got this error message that the site S. David Stulberg, M.D. Northwestern University Chicago, Illinois VS Steven J. MacDonald, M.D., F.R.C.S. University of Western Ontario Moderator: Clive P. Duncan, M.D., F.R.C.S.(C) University of British Columbia Wikimedia - KaihsuTai and Current Concepts in Joint Replacement/RRY Photo Creation was blocked [image showing error message with Dr. MacDonald’s photo]. I’m not saying that Steve blocked it, but he knew the debate was coming.” “When you look at the incidence of revision, and the incidence of instability following revision, this incidence increases because: the hip anatomy is distorted, deficient soft tissues, altered hip biomechanics. There may be a role for large femoral heads in fixed acetabular components. There are significant disadvantages to using large femoral heads with a fixed acetabulum. The size of the head is limited by the patient’s anatomy; and if you use a thin polyethylene you may end up with a device that is intolerant to cup malposition, and is associated with unknown wear.” “Dual mobility is inherently more stable…there’s a bigger jump distance… and there’s a bigger theoretical range of motion when you use full mobility concepts. When you couple this with highly cross-linked polyethylene (HCLP), it’s being suggested that even if these cups are placed in abnormal positions, something that I think no one should try to do or tolerate. These will tolerate malpositions perhaps better than metalmetal. But the proof is in the results… the French results: in primaries their revision rate using conventional poly is extremely low (<0.4%). In revisions it’s also very low (2.1%); surprisingly their survival rates are very high using conventional poly.” “The future? We could introduce HCLP…this seems to reduce wear. Another concern will be the impingement potential. Hemispherical cups may be adapted to the anatomy, and can be made anatomic so that you retain the hemispherical advantage while avoiding the potential for impingement. I think 1-888-749-2153 | www.ryortho.com 13 the dual mobility seems to offer a safe, effective solution to hip instability. The long-term durability may be increased, particularly with improvements in the polyethylene. The indications start with revision total hips that are being done for recurrent instability. It may be an attractive option for most revision total hips where instability is a problem… also for primary patients where you can identify the risk factors for instability. The unresolved question is, ‘Will it be a couple that lasts long enough that makes it interesting for primary hips in general?’ Also, ‘Will it perform when malpositioned?’ Thank you.” Dr. MacDonald: “I’ve been charged with debating dual poly liner mobility…and thankfully I’m in strong opposition. For most of us in North America this is a new concept. It’s a monoblock VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 shell with a large piece of poly that articulates against that shell…the ball fits in and that gives you your ultimate hip construct. The first question is, ‘Does it make inherent sense?’ If you look at a total hip model, it’s a differential hardness bearing…i.e., the harder surface (head) articulates against a softer surface. There are lots of examples of that: every hip we basically do globally is that construct, whether it’s metalpoly, ceramic-poly, so it’s hard on soft; metal-on-metal…there is some—globally and in North America—differential hardness. Always though, the head is harder, the liner is softer. I didn’t block the registry data…but I could have.” “Why is it hard on soft? Because if you reverse the situation you get increased wear. So we have by design a construct with inherent increased wear. The pub- lished basic science on this construct: I could find no published wear data in the literature. What I did find were advertisements, saying there’s 94% reduction in wear compared to metalmetal if the metal-metal is at 65 degrees of cup inclination. But we’re not advocating that, so I challenge the thinking that we’re there with the basic science on this construct.” “The poly is free to go into a more closed position…it looks good here [showing picture], but what if it’s more closed… the theoretical issue of edge loading and polyethylene failure. We have two articulating polyethylene surfaces… one with a huge surface area. What’s that going to do to wear and osteolysis? Not reduce it. The claim is for improved range of motion (ROM) and stability, but I challenge that because we know Advertisement 1-888-749-2153 | www.ryortho.com 14 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 in lots of good basic science, and our own clinical acumen tells us that once we get to a 36, 38, or 40mm head, there really is no improvement in ROM beyond that.” “There is no clinical evidence for the claim that because it’s anatomic that it may decrease psoas impingement. I think that left and right sockets increase the risk for improper implantation. Information from the Australian registry on monoblock shells shows a higher failure rate than modular shells—certainly in metal-metal.” “Who is this recommended for? The techniques manual says: OA, RA, revisions, patients with a dislocation risk… that’s basically everyone. If we can assume that the goal of this construct is increased stability—and David did publish on this recently and showed a dislocation rate in this small series of less than 1%. But there are lots of publications with series less than 1% when you look at certain centers.” “I would concede we know we have a risk of dislocation issues in revision arthroplasty. But an acetabular component with no screw fixation, that doesn’t help me in a revision. I’m not going to use a monoblock shell in a revision… I’m more worried about getting the cup to fix than I am with instability in this kind of construct and design.” “So conceptually, there are challenges with this design. Since its introduction over 30 years ago we’ve had many advances in our thinking in terms of materials, designs, and techniques. And while it’s been used for 30 years we don’t have 20 year data…and I would say any new implant today must show equiva- lence in terms of wear, fixation, midterm results, complications, and cost… and we’re not there yet with this.” Moderator Duncan: “David, do you want to answer any of those complaints?” Dr. Stulberg: “We have been raised in North America on the idea that convex polyethylene is a bad idea. But if you actually do it and look at the results… this idea has been around a long time. If this were a bad idea then we would know it. We must expand our thinking with regard to this concept…and it’s a good time to do it when the alternative bearings are taking a beating.” Moderator Duncan: “David, I think the criticism is valid that we have no data on the wear characteristics between the polyethylene and the outer monoblock ? How do you get a surgeon to come for new product training You take the training to the surgeon Mobile Medical Conversions can produce your mobile lab configured with any medical devices you would need. RV conversions Sprinter vans Trucks ! Buses HD Video Conferencing MC MOBILE MEDICAL CONVERSIONS 832.390.5953 www.mobilemedicalconversions.com Advertisement 1-888-749-2153 | www.ryortho.com 15 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 cup. Are you aware of any that aren’t in-house?” this shell. There is no capacity to fix it with peripheral or polar screws.” Dr. Stulberg: “The available testing data is limited and it’s by and large industrial. And I think we need more information, but it’s consistent at least with what seemed to be very good clinical long-term results. So I think it’s a start, but I think this concept—and the fact that it’s being clinically used—should now stimulate this kind of laboratory information.” Dr. Stulberg: “I was trying to suggest that there were a number of ways this concept was going to go. I’d be willing to bet Steve a dinner at the next CCJR that we will see this combination with screws in the very near future.” Moderator Duncan: “So it’s overdue. Steve, the jump out distance of 11mm is attractive. Are there any circumstances under which you might turn to this?” Dr. MacDonald: “No.” Moderator Duncan: “David, the fact that you can’t put any screws on this is alarming. Could we have a new design with a recessed screw head that might not increase the risk of poly wear?” Dr. Stulberg: “Clive, are you asking if screws were introduced…” Moderator Duncan: “In a revision setting. I think Steve made a good point that you have to depend on interference fit and friction surface fit to use Moderator Duncan: “So that’s the improvement you’d see that would make it more attractive. David, what are the indications under which you would use it next Monday? In your clinical setting…circumstances under which you feel this would be a good socket.” Dr. Stulberg: “It’s a good socket in patients who have bony anatomy that allows a cup without screws. So you need good coverage at the moment in which you can get good fit of the shell in a patient that has the potential for instability. So that might be a revision where you have good bone stock, and it certainly is a primary where the patient is at significant risk and you have enough bone stock to place this current concept.” Dr. Stulberg: “I don’t think I would use it routinely in highly active people, but I’m not sure that age in and of itself would be a contraindication.” Dr. MacDonald: “Moving forward we need good quality data…and that’s where registries help. A series of 100 or 200 is not going to give that same viable data that we look for in a registry. The question is, ‘Who gets that implant put in them? Is it that elderly patient?’ That’s a challenge because I don’t see a role for it to get big enough numbers to capture a good registry…and I don’t know if that’s going to be possible. I don’t think a case series from developers anymore is the way to go.” Dr. Stulberg: “I agree, and I think that its use is increasing enough that we’re going to be able to see this information within the next two or three years.” Moderator Duncan: “Please join me in thanking the speakers.” ♦ Please visit www.CCJR.com to register for the 2012 CCJR Spring Meeting, May 20-23 in Las Vegas, Nevada. Moderator Duncan: “Because of the lack of data on wear, would you limit it to use in elderly patients?” “You may now view content from the CCJR Meetings on the CCJR Mobile App. Please scan the QR code to download the CCJR Mobile App to your Android or iOS mobile device, or visit www.ccjrmobile.com.” QR code generated on http://qrcode.littleidiot.be 1-888-749-2153 | www.ryortho.com 16 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 On (and Off) the Record ear OTW Reader: “Will orthopedic training programs close?... Infectious complications and timing of anti TNF Meds…what’s going on with manual skills training for residents?... St. Vincent Team Wins Stinchfield Award…and more. D Training Programs to Close? An observant consultant tells OTW, “Those of us who have been involved in accreditation and peer review of education are concerned about what’s going on in Washington, DC—regardless of who wins the next election. Graduate medical education (GME) is hanging by a thread, and whether the inevitable cuts are substantial or less so, the future of By Elizabeth Hofheinz GME is just not clear. If ‘only’ 40% of the $14 billion that the government puts annually toward GME is cut, that will still leave programs scrambling for options. There is the possibility that residents could be charged tuition, something that could happen in orthopedic surgery because it is a highly competitive specialty. What is more likely is that institutions will begin getting out of fellowship subspecialty education. So instead of having a training program they would replace students with junior faculty so that they could bill for services all the while that these people are learning from the senior faculty people. Some private hospitals that weren’t designed to be educational institutions may get out of GME altogether. The institutions that are designed to be teaching hospitals will have it hardest as they will have to cut back, but will have more patients. This is all completely at odds with the fact that we are going to see more and more orthopedists retiring and the reality that we don’t have enough people to replace them.” Daniel Garen New VP at Wright Daniel Garen, an attorney, has been named Senior Vice President and Chief Compliance Officer. Garen has many years of experience with managing corporate compliance programs for public healthcare technology companies and has more than ten years of corporate 1-888-749-2153 | www.ryortho.com 17 legal experience. Garen, who earned his law degree—as well as a master of laws in health law—from the Loyola University Chicago School of Law, has held senior compliance officer positions with Siemens Corporation and Bayer Healthcare. He served as Chief Compliance Officer and Senior Counsel from October 2007 to August 2010 at Siemens Healthcare Sector US, and he most recently held the position of Vice President, Healthcare Policy and Clinical Affairs until January 2012 at Siemens Healthcare Sector US. Infectious Complication? Look at the Timing of Anti TNF Meds Dr. Beverly Johnson is a rheumatologist at Hospital for Special Surgery (HSS), and is lead author of the research on “Tweaking the Timing of Stopping Anti-TNF Medications Before Knee Replacement Surgery.” She told OTW, “I used HSS’ substantial joint replacement registry to examine the safety of taking anti TNF (tumor necrosis factor) medications around the time of surgery. Specifically, I looked at knee replacement patients who had rheumatoid arthritis (RA). There is not a lot of data about this, and thus far, every national rheumatological society has different recommendations. For example, the American College of Rheumatology recommends stopping anti-TNF meds for one week before surgery, then beginning again one week postop, while in Britain the recommendation is to stop 3-5 half lives preoperatively and to restart after wound healing. I wanted to see what we are doing here at HSS. I found that many physicians are actually stopping anti-TNF medications for several half lives, which is a more conservative approach and more similar to the British guidelines. They are holding these medications several half lives prior in an attempt to avoid infectious complications, but this may lead to postoperative RA flare. I found that there wasn’t VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 How well do you know your tissue bank? OUT OF EVERY 100 MTF ACCEPTS POTENTIAL DONORS... 125 May Street n ONLY 3 Edison, NJ 08837 n 732-661-0202 n mtf.org Advertisement a difference at six months in negative outcomes including infections, but the overall negative outcomes were low. I sent a survey to patients and found that a larger percentage of patients on preop anti-TNF had an RA flare. Basically, we may be holding these meds too long prior to surgery. We must weigh the risk of the possibility of having a negative outcome—an infection—six months out versus the risk of flare of RA as a result of holding the medications. More work is needed, however, as you would have to have two thousand surgeries in order to say that there is a statistically significant difference in the infection rate between the two groups.” Kyle Mullens, Chris Scifert Join Orchid Orchid Design has added Kyle Mullens to its team as Business Development Manager, while Chris Scifert, Ph.D., is the new Engineering Manager of the Memphis Design Center. Mullens’ was formerly Director of Business Development at Secant Medical, and Product Manager at K2M, Inc. At the latter company Mullens led product commercialization efforts for a portfolio of minimally invasive spinal implants and instruments. Mullens, who holds a B.S. in Plastics Engineering from Ferris State University in Michigan, has also executed Business Development and growth strategies for A.Schulman, Inc., an engineered polymer resin manufacturer. As for Dr. Scifert, his background includes serving as Senior Manager, Product Development at Medtronic Spinal and Biologics. He has also managed engineering projects as a Senior Engineer and Project Manager at Smith & Nephew focusing on early intervention knee and shoulder systems. Dr. Scifert received his B.S. in Engineering Sciences and Mechanics at the University of Tennessee and his Ph.D. in Biomedical Engineering at the University of Iowa with his Doctoral Dissertation entitled ‘A Finite Element Investigation 1-888-749-2153 | www.ryortho.com 18 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 into the Biomechanics of Total Artificial Hip Dislocation.’ Manual Skills Training for Residents! Ann Van Heest, M.D. is a hand surgeon at the University of Minnesota, and has been the Residency Program Director for 13 years. She has worked steadily to incorporate technical skills as an area of resident evaluation. Dr. Van Heest tells OTW, “In November 2011 the American Academy of Orthopaedic Surgeons sponsored a surgical simulation summit, which included representatives from the major societies and the American Board of Orthopaedic Surgery (ABOS). The Council of Orthopaedic Residency Directors has been assessing surgical skills in residency training programs and at this summit we began exploring ways to incorporate this into programs in a standardized fashion. General surgeons are already required to undergo manual skills training, so we are hoping to learn from their experiences…and see if the ABOS will be open to a similar requirement/situation for our specialty. Part of the challenge is that such testing would have to be verified…and if it’s going to be done on a national level then it must be a standardized test that is reproducible and that measures these skills appropriately. This is really the long range goal. The importance of this to patient safety cannot be overemphasized. There are certain things that residents should really learn in a lab as opposed to on patients—such as knee arthroscopy. Doing so would lead to shorter operating room times because residents would have gained higher level skills in the lab.” ing it easier at every point in the process to do surgery. I receive more support than ever before, and the technology is more advanced than ever…I’m doing more work and enjoying it more than ever. Also making things better is the abundance of ambulatory surgery centers whose quality is improving as people learn how to run them. This makes it easier to do many cases at a higher level of quality. I have always loved my work and now have more confidence in my surgery, better results, better decision making due to experience, and many patients returning after many years (like old friends). The main thing I see on the horizon that I am concerned about is a constant increase in regulations, some of which seem to have no relevance to what we do.” The Happy Orthopedic Surgeon? Calling himself a “voice in the wilderness,” Dr. Jesse Jupiter tells OTW, “I’m actually happier these days as an orthopedist. I find that my institution is mak- St. Vincent Team Wins Stinchfield Award Riding high in Los Angeles, a team of researchers at the Joint Replacement Institute (JRI) at St. Vincent Medical Center has won The Hip Society’s prestigious Frank Stinchfield Award. The scientists were acknowledged for their work on the age-related wear of total hip replacement implants. Thomas P. Schmalzried, M.D., Medical Director of the JRI, was the preceptor for the study, which was led by senior medical student Andrew Battenberg. The team used a microprocessor to measure leg motion in hip replacement patients. Patients in this JRI study were monitored for a minimum of ten years. The paper, “Decreasing Patient Activity with Aging: Implications for Cross-Linked Polyethylene Wear,” will be presented during the American Academy of Orthopaedic Surgeons (AAOS) conference in San Francisco on February 11, 2012. The manuscript is set to be published in Clinical Orthopaedic and Related Research in approximately one year. ♦ nanOss Bioactive ® 3D Another dimension brought to you by Advertisement 1-888-749-2153 | www.ryortho.com 19 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 company ISTO and Zimmer Announce Phase III Study of DeNovo ET F inding a way to grow new cartilage and bone is considered by many in the field of orthopedics as the Holy Grail of joint preservation. Zimmer Holdings, Inc. and ISTO Technologies, Inc. took a step closer towards that elusive goal by announcing on February 7 a Phase III clinical study to evaluate ISTO’s DeNovo ET Engineered Tissue Graft. DeNovo is an engineered cartilage implant intended to repair cartilage defects in the knee. The product is being developed under a collaborative relationship between ISTO and Zimmer. Cheryl Blanchard, Ph.D., Zimmer’s senior vice president and chief scientific officer told us at Zimmer’s booth at the annual American Academy of Orthopaedic Surgeons’ meeting in San Fran- cisco that the graft program is a natural extension of the company’s early intervention and joint preservation portfolio. “This Phase III study will generate meaningful data on the potential of this novel biological solution for treatment of cartilage lesions earlier in the continuum of care,” said Blanchard. The Phase III study will comprise a randomized, controlled clinical trial involving 225 patients at up to 25 centers in the U.S. According to the joint company announcement, the program is designed to demonstrate superiority over the current standard of care (microfracture) for articular cartilage defects. In preclinical studies, according to the announcement, cartilage cells derived from juvenile tissue demonstrated a significantly greater capacity for regenerating cartilage compared to cells derived from adult cartilage. Recognizing and harnessing the significant regenerative capacity differences between adult and juvenile cells is an underlying principle of ISTO’s platform for cartilage repair. In addition, through a proprietary scalable manufacturing process, ISTO has developed a platform technology for cartilage regeneration using juvenile cartilage cells. “It is gratifying for our team to see our breakthrough cartilage repair technology advancing from research into a late stage clinical trial for what is clearly a large unmet medical need,” said Mitchell Seyedin, Ph.D., president and CEO of ISTO. DeNovo ET consists of living tissue grown in a laboratory from the donated juvenile cartilage cells. The resulting implant is a thin disk of cartilage tissue about the size of a quarter. This tissue is implanted surgically into the knee joint and is intended to grow new cartilage to replace damaged cartilage. The shape and fit of the implant can be customized during the implant procedure. Rehabilitation following implantation begins with non-weight bearing mobility exercises with progression toward fully bearing weight on the knee by approximately six to eight weeks after surgery, depending on the location of the damaged cartilage. Subsequent rehabilitation phases focus on regaining normal activity levels, full muscle strength and optimization of a patient’s own desired activity levels. Complete rehabilitation to full activity levels can be expected to take between (or about) 12-18 months. According to an ISTO website statement, no tissue rejection was observed in a previous in-human safety trial and DeNovo ET was determined to have a satisfactory safety profile. —WE (February 9, 2012) ISTO Technologies, Inc. 1-888-749-2153 | www.ryortho.com 20 Smith & Nephew Settles Greek Bribery Charges S mith & Nephew has agreed to pay the U.S. government more than $22 million to settle charges that the company bribed Greek public doctors over more than a decade. The government had charged Smith & Nephew’s U.S. subsidiary under the Foreign Corrupt Practices Act. The government alleged that the company used a distributor to create a “slush fund” to forward payments to doctors working at government hospitals in Greece in order to win business. This won’t come as a shock to readers of Michael Lewis’s book, Boomerang. VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 In the book Lewis claims that Greece has a well known culture of cheating on taxes, bribing public officials and cooking the public books. The company has committed to pay $22,226,799 in fines and profit disgorgement, maintain an enhanced compliance program, and appoint an independent monitor for at least 18 months to review and report on its compliance program. Smith & Nephew and other medical device companies were asked by the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) in late 2007 to look into possible improper payments to government-employed doctors and voluntarily report any issues. Smith & Nephew found and reported evidence of improper payments by a distributor in Greece that had been appointed by Smith & Nephew subsidiaries and was terminated in 2008. A company statement noted that the individuals implicated are no longer associated with the company. “We have what I believe to be a worldclass compliance program, having enhanced it significantly since this investigation began in 2007,” commented Olivier Bohuon, the company’s new CEO in the February 6 press release. “These legacy issues do not reflect Smith & Nephew today. But they underscore that we must remain vigilant every place we do business and let nothing compromise our commitment to integrity.” —WE (February 7, 2012) : Image creation by RRY Publications, LLC. Sources: Smith & Nephew and Map of Greece 1-888-749-2153 | www.ryortho.com 21 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 biologics Unique Israeli Company CartiHeal Gets CE Mark A n Israeli company has received CE Mark certification for the EU for a cartilage defect repair product, based solely on a preclinical trial. The company is CartiHeal Ltd and the product is Agili-C. Nir Altschuler, a biomedical engineer who founded the company in 2009, said, “It is very unusual to obtain made of aragonite and hyaluronic acid. Both are biocompatible and biodegradable. The product does not include living tissue, in contrast to other products under development. “We found that these materials attract stem cells from the bone marrow, so that only cells in aragonite area turn into bone, and cells in the area of the aragonite and hyaluronic acid turn into cartilage,” says Altschuler. The Agili-C, an articular cartilage and osteochondral defect repair product, is implanted through minimally inva- that are developing stem cell-based products include Israel’s Carticure Ltd., Regentis Biomaterials Ltd., and Prochon Biotech Ltd., which merged with a U.S. company last year and is believed by observers to be the closest to bringing a product to market. Companies in the cartilage reconstruction segment estimate the market at $1.6 billion a year, although most products remain experimental. CartiHeal has raised $5 million from Accelmed, the fund of Moshe (Mori) Arkin and Uri Geiger, and Access Medical Ventures, a U.S. fund run by Israelis Limor Sandach, Dvir Keren, and Michael Tal. CartiHeal is a graduate of Peregrine Ventures’ Incentive Technological Incubator. —BY (February 6, 2012) Experience. Expertise. Excellence. Courtesy of CartiHeal Ltd. CE Mark without clinical trials, but the preclinical trial results were good enough.” He established the company based on a concept discovered at Ben Gurion University of the Negev. The product is also certified in Israel. sive surgery, similar to an injection, he says. “The cells gradually dissolve the implant, and within a short time, the implant can bear the body’s weight and regular activity can be resumed.” Agili-C is produced in two parts. One is made of aragonite, and the other is While the cartilage reconstruction market is experimental, company officials believe that it is promising. Companies Global Service Surgical Training Centers Surgeon Subspecialty Training Course Management Specialists mLAB Cadaveric Anatomical Specimens Oregon - Nevada - Florida - Rhode Island Call 503.764.9919 MedCureSTC.org Advertisement 1-888-749-2153 | www.ryortho.com 22 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 large joints TiGenix: Green Light for RA Dosing T iGenix NV has announced that the independent Safety Monitoring Board has reviewed the safety data of the first three patients of the second cohort of the company’s Phase IIa clinical trial in rheumatoid arthritis (Cx611)…and has given the green light to recruit and dose the remaining 20 patients of this cohort and to open the third and final cohort. This is a multicenter (20 centers open at present), placebo-controlled study that will enroll approximately 53 patients, divided in 3 cohorts with different dosing regimens. “We are very pleased with reaching the next stage in this Phase IIa trial on schedule,” said Eduardo Bravo, CEO of TiGenix in the February 1, 2012 news release. “With each positive step forward that we take, in addition to promising results recently reported by other companies and research groups in the stem cell field, we are moving closer to the moment that stem cell therapies will be a mainstay of clinical practice, providing solutions for a wide range of unmet medical needs.” So what exactly are RA patients receiving when they get Cx611? A suspension of expanded allogeneic adult stem cell product derived from human adipose (fat) tissue (expanded adipose-derived stem cells or ‘eASCs’) that is delivered intravenously. The objective of the Phase IIa trial is to determine safety, feasibility, tolerance, and optimal dosing. TiGenix expects the final results to be available in the first half of 2013. Bravo told OTW, “We are delighted that the Safety Monitoring Board has so rapidly reviewed the safety data of the patients in the second cohort of our Cx611 Phase II in RA. As a result we can now open the third and last cohort of the study, which is running exactly on schedule.” —EH (February 6, 2012) Wikimedia Commons and ÁWá Advertisement 1-888-749-2153 | www.ryortho.com 23 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Tabby Cat Gets Knee Replacement I t is not just humans who are getting knee replacements. A ten-year-old tabby cat named Cyrano, in a medical first, received a new knee last week. Veterinary doctors believe this to be the first feline total knee replacement performed in the U.S. Doctors from Texas and Washington D.C. were present in the operating theater to assist the three orthopedic surgeons from the North Carolina State University College (NCSU) of Veterinary Medicine in the six hour surgery. The implant, designed and fabricated by an international team of collaborators, was made from dense plastic and a cobalt chromium alloy, using a laser process that hardens metal powder to replicate bones. lin-Little had performed the world’s first surgery to fuse leg implants with a cat’s bone tissue, so Cyrano’s owner turned to him for help. Marcellin-Little said the 20-pound tabby’s big bones were a plus. “He’s already able to stand,” he said. “His foot is in the right place, and he can put his foot on the ground. So far, so good. Now we have to be very patient with letting his tissues reattach, and it has to heal slowly.” —BY (February 6, 2012) “The surgery was kind of a bit difficult, but it went very smoothly,” said Dr. Denis Marcellin-Little of NCSU, who led the surgical team, in the January 28 news release. The cat had previously been treated successfully for bone cancer. But the treatment had left the animal with a painfully damaged knee. The cat’s owner, Sandy Lerner of Upperville, Virginia, sought the knee replacement in an effort to avoid having to amputate the cat’s rear left leg. In 2005, Marcel- Wikimedia Commons and Hisashi extremities New Mallet Can Take a Beating W eighing in at two pounds, the orthopedic mallet by The EF Precision Group, is built to handle the rough and tumble world of the ortho OR…EF Precision Group has announced that it has received a patent from the U.S. Patent Office for the assembly of its orthopedic mallet. “We got a call from an internationally renowned teaching hospital requesting our engineering opinion on what appeared to be defective orthopae- EF Precision Group dic mallets that were breaking in the operating room,” says Bud Tyler, vice president of The EF Precision Group, in the January 25, 2012 news release. “With our background in aerospace and medical device manufacturing, we were able to quickly recognize the weakness of the existing devices and engineer a superior product that would maintain its integrity under demanding conditions. They wanted a solution almost overnight; from design to assembly, we delivered the product in less than 60 days.” 1-888-749-2153 | www.ryortho.com 24 The EF Precision orthopedic mallet— made with a stainless steel head and aluminum handle—has a different way that the head and handle are put together, and, says the company, gets rids of any shock and vibration that could lead to mallet head breakage. Tyler told OTW “This was an interesting project for us, as a manufacturer that already provides complex components and critical devices to the aerospace and medical industries, the mallet is a very simple product for us. The challenge was to make a mallet that won’t break in the operating theater. When we first saw the mallets that were presented to us, we looked at the metallurgy of the assembly and where the breakage was occurring. We noted two areas of concern, and both issues had mechanical problems causing weakness. We changed how the part was being processed through machining and the assembly. We first removed a set screw that appeared to be securing the head to the handle and engineered a process to press the two dissimilar metals together. The head is stainless steel and the handle is aluminum. The second feature we removed was a shoulder on the handle, believed to be another source of weakness.” VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Snowboarders & Skiers Hazards Differ S nowboarders and skiers race down the same snowy slopes, but the injuries they sustain when they fall are different. A study published in the January issue of the American Journal of Sports Medicine and reported by Jeannine Stein, of the Los Angeles Times, found that the most common injury to snowboarders was to their wrists—probably occasioned by their putting out a hand to break a fall. Among adult skiers the most common injuries were to the knees—mainly anterior cruciate ligament sprains. Children who were hurt were more apt to experience contusions on their lower extremities. Researchers studied the experiences of skiers and snowboarders who were injured at a Vermont ski resort during the 18 seasons between 1988 and 2006. In that time there were 2,260 total nonserious injuries experienced among 2,088 snowboarders and 9,465 injuries among 8,645 skiers. The control group for the study consisted of 291 non-injured snowboarders and 2,075 non-injured skiers who were selected at random. Snowboarders who were young, female and inexperienced at the sport had the highest rates of injury. Researchers speculated from their data that being active for long periods without resting, using improper or faulty equipment, being dehydrated, skiing or snowboarding above what was comfortable for their ability and not properly adjusting to the altitude all contributed to skiers and snowboarders being injured. —BY (February 6, 2012) He added, “We built and provided five mallets and gave them to Jefferson Hospital Orthopaedic for confirmation of the new engineering design. The results were very positive, they used the mallets for 3+ months without any incidents/ breakage. To date we have delivered over 170 mallets to two different hospitals and a local orthopaedic surgeon, the Mallets have been in use for almost two years without any breaks, exceeding the doctor’s expectations.” —EH (February 8, 2012) Source: Wikimedia Commons and SallieMcG/Caption: Photograph of original oil painting by Thomas Hudson Connell, owned by daughter Sarah (Sallie) Connell McGrath 1-888-749-2153 | www.ryortho.com 25 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Shockwaves Treats Plantar Fasciitis in patients’ feet, elbows, shoulders and hips and can cause debilitating pain. an shock wave therapy eliminate the pain of plantar fasciitis? A 70-year-old woman, Jean Dickie, in Scotland believes that it can. After suffering for three years with sometimes excruciating pain on the underside of her heel, she went to the Consultant Orthopaedic Foot and Ankle Surgeon in Glasgow where she was given a course of extracorporeal shockwave therapy (ESWT). She now claims to be pain-free. C The cost of putting a patient through an ESWT treatment course is considerably less than the cost of invasive surgery. Surgeons in the UK say that they prefer not to operate on patients such as Mrs. Dickie because the outcomes from surgery for plantar fasciitis often do not prove too successful. ESWT has the potential to save healthcare providers considerably because patients like Mrs. Dickie, if the treatment proves to be successful, will not require any further treatment from a GP or hospital. ESWT is a relatively new treatment that is currently available at 100 locations in the UK, 20% of which are National Health Service hospitals. Proponents say that ESWT is particularly effective when treating a range of chronic soft tissue injuries that are commonly found Mr. Pal Ramesh, one of the UK’s top orthopedic specialists, runs an ESWT clinic. He said in the January 24 news release: “Extracorporeal shockwave therapy is just as effective as traditional surgery but it has lots of other benefits. The treatment only takes minutes to perform, it doesn’t involve anesthetic, and the patient isn’t put in plaster and doesn’t face a long rehabilitation that can mean six months off work.” During the ESWT treatment process, Ramesh notes that low-energy shockwaves are passed through the skin to initiate an inflammatory response in the injured tissue. This prompts the body to respond naturally by increasing blood circulation, the number of blood vessels and therefore metabolism in the injured tissue. This accelerates the body’s natural healing response by increasing cell generation and dissolving calcium deposits. “It has always been very difficult to treat some chronic conditions because we haven’t had a truly effective solution apart from invasive surgery,” Ramesh added. “But extracorporeal shockwave therapy is successfully filling that void and it’s great that this treatment is becoming more available.” Spectrum Technology UK Ltd is the exclusive distributor for the low-energy Swiss DolorClast Extracorporeal Shockwave Therapy device in the UK. It is considered to be a safe treatment option for the treatment of plantar fasciitis, Achilles tendonopathy and tennis elbow. The device is used by a number of football teams in the English Premier League and was also used by athletes at the last three Olympic Games. The Swiss DolorClast is the only ESWT device that administers low-energy impulses to be actively promoted in the UK. Wikimedia Commons and Nevit Dimen —BY (February 6, 2012) 1-888-749-2153 | www.ryortho.com 26 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 FDA Clears Two New Clavicle Repair Technologies T he FDA has granted 510(k) clearance for two products designed to aid in the repair of the shoulder made by Arnold, Maryland-based Suspension Orthopaedic Solutions, Inc. One product is the Distal Clavicle Fracture Fixation System and the second is the Mid-Shaft Clavicle Plate. The two devices, made of stainless steel, “can be used in combination for the repair of distal-clavicle fractures,” company CEO Robert S. Collins told OTW. “These two new FDA clearances will expand the availability of our confidence-inspiring solutions for orthopaedic surgeons who treat difficult shoulder injuries, and reflect Suspension’s core mission of bringing meaningful innovation to challenging orthopaedic injuries.” Wikimedia Commons and fpjacquot System addresses a widely acknowledged challenge for surgeons, which is to effectively secure fractures of the distal portion of the clavicle. Existing technologies have been associated in the clinical literature with inadequate fixation, suture abrasion and more time-consuming surgery. He says that the new Mid-Shaft Clavicle Plate creates a complete clavicle system for surgeons treating these injuries. Both products build on Suspension’s separate, previously cleared products that address two injuries to the shoulder suspensory complex: clavicle fractures and AC [acromioclavicular] joint separation, he added. These injuries are often sports-related, typically occurring in physically active people ages 18 to 55 who participate in activities such as bicycling, football, skiing and snowboarding. Suspension Orthopaedic Solutions, Inc. is a privately held medical device company that lists as its goal the bringing of meaningful innovations to surgeons who manage traumatic injuries of the musculoskeletal system. The company was founded in 2008. —BY (February 6, 2012) The Distal Clavicle Fracture Fixation System features Suspension’s patentpending T-Loc Technology which enables knotless, protected and precisely controlled tension for secure fixation of multiple soft-tissue injuries. Collins, co-founder of the company, says that the technology is applicable to more than 30 indications throughout the body. This would encompass a million procedures annually in the U.S. alone. He also says that the FDA clearances, combined with the company’s recently closed financing with Axiom Equity Partners, will allow the firm to apply this core technology to other conditions. Company co-founder, orthopaedic surgeon Dr. Jeffrey Gelfand, explained that the Distal Clavicle Fracture Fixation Advertisement 1-888-749-2153 | www.ryortho.com 27 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 trauma Football and Alzheimer’s – A Connection? T his past Super Bowl weekend millions of people around the world hunkered down amidst mounds of food and surrounded by friends to watch this uniquely American paean to the game of football and the art of advertising. Yet, in the midst of the football mania a nagging concern is dampening the revelry for a growing number of medical professionals. Might head injuries associated with football contribute to the incidence of Alzheimer’s disease among football players? Is there a link? Medical professionals are increasingly troubled by autopsies of retired professional athletes who played contact sports, such as football, and the evidence they are seeing of brain deterioration similar to Alzheimer’s. According to Diane Lade in a January 28 article in the Florida Sun Sentinel, South Florida physicians, athletic organizations and Alzheimer’s researchers are looking for ways to protect the heads of young players. Neurologist Dr. H. Murray Todd, medical director of the Memory Disorder Center at North Broward Medical Center in Pompano Beach, is one of those concerned. “They talk about a player ‘getting his bell rung,’ but that bell is his brain,” he said. “When you look at the pros, and look back on their life stories, you see they were getting dinged when they were 12, 13 years old, before they ever got to high school,” Todd said. He believes in taking head injuries seriously, treating them properly and not allowing players to return to the game until they are cleared by a neurologist. There is another concern for players of football. If they are carriers of the Apolipoprotein E, or ApoE, gene that research indicates is connected to Alzheimer’s, will they be more likely to get the disease if they have had repeated concussions? Dr. Kester Nedd, co-director of UHealth’s concussion program, replies in the affirmative. “I absolutely think, when you add brain injury on top of it, those [carriers] are more at risk.” In Florida more middle and high school students—38,450 of them—play football than any other sport, according to the Florida High School Athletic Association. Source: Wikimedia Commons/Courtesy: Alzheimer’s Disease Education and Referral Center, a service of the National Institute on Aging —BY (February 6, 2012) spine Custom Spine: International Green Light T hey’ve got a passport and their bags are packed…Custom Spine, Inc. has achieved ISO-13485 and received CE Mark for all its current products sold in the U.S., thus opening the door for the company to commercialize its products into the international market. Custom Spine In the January 30 news release, company President Mahmoud Abdelgany commented, “We are excited to receive CE clearance and to take the next steps into distributing our products in the international arena. This is a significant milestone for Custom Spine, and we are looking forward to working with our international partners in offering our products outside of the U.S.” The darling of Custom Spine’s product portfolio is its pedicle screw system, ISSYS LP. According to the company, the advanced design of ISSYS LP allows the surgeon to fully seat the screw against bone providing 63% greater shear force resistance than traditional unseated screws, while maintaining full polyaxial motion of the screw head. Also included in the product portfolio is Pathway AVID, a unique articulating verte- 1-888-749-2153 | www.ryortho.com 28 bral interbody device. The implant is inserted in a traditional transforaminal approach in its straight, non-articulated position. Once placed in the disc space, the implant is articulated using the specially designed inserter to create a large footprint device that follows the natural periphery of the vertebra, increasing stability and support to reduce the risk of subsidence. Abdelgany told OTW, “Custom Spine’s goal in developing ISSYS LP was to make many incremental improvements to the current pedicle screw designs and instruments, while allowing the company to follow the 510K [501(k)] Clearance regulatory path. At the same time, these improvements had to differentiate our product from competitive systems and provide clear added benefits for the patient and surgeon. Prior to ISSYS LP and continuing on until today, pedicle screws on the market were based on the older shared design which did not allow polyaxial motion of the screw head if the implant was fully seated to resist loosening. Our goal was to create a fixation system which could provide the surgeon with optimal bone/bone screw contact by allowing the screw to be fully seated in the bone while maintaining poly-axial motion of the head of the screw for easier rod insertion.” The company’s low profile anterior cervical plate system—Regent ACP—is also on the international dance card now, and features self-locking slides that allow a variety of constructs to be created while providing the surgeon with confidence that the screws are fully locked in place. The Pathway PLIF and TLIF, and the ISSYS LP Monoaxial and Cross Connector systems were also cleared. VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Award Winning Israeli Spine Company Gets 510(k) Clearance the implant can be delivered through a small incision with minimal disruption to muscles and surrounding tissues. N Company officials note that the implant also has a large capacity for bone graft material, greater than in more traditional TLIF devices, which allows for greater bone graft-to-endplate contact surface area, potentially improving fusion rates. LT SPINE, an Israeli developer of minimally invasive spine surgery (MISS) products, has just received FDA 510(k) clearance for its PROW FUSION device. NLT SPINE is a winner of the 2011 Spine Technologies Award, given by Orthopedics This Week during the North American Spine Society conference in November 2011. The judges recognized companies that presented the most innovative and promising products in 2011 to treat back pain. Invented by Dr. Tzony Siegal, the PROW FUSION device and delivery system are intended to be used for spinal fusion in transforaminal-lumbar interbody fusion TLIF) procedures. The technology allows the surgeon to insert large implants and instruments through a small incision. Among the attributes of the PROW FUSION, according to the February 1 press release, is a footprint that is larger than existing TLIF devices, which provides greater biomechanical stability and less subsidence postoperatively. Due to the non-linear design, which allows for deployment of the implant within the intervertebral disc space, The non-linear design fits well with NLT SPINE’s mission to deliver complete MISS procedures, including disc space preparation, deployment, and supplemental fixation and implant delivery, as required. The company expects PROW FUSION to provide benefits to patients as well as to surgeons and hospitals. For surgeons and hospitals, it is expected to offer efficient and user-friendly MISS procedures, while for patients it is expected to minimize recovery time. “We conclude 2011 with significant achievements for the company on its path to improving the care delivered to patients suffering from spine conditions,” said Didier Toubia, CEO. “We view our technology platform as a significant advancement in minimally invasive spine procedures….” —BY (February 6, 2012) —EH (February 10, 2012) Courtesy of NLT Spine 1-888-749-2153 | www.ryortho.com 30 VOLUME 8, ISSUE 6 | FEBRUARY 14, 2012 Orthopedics This Week | RRY Publications LLC Main Contact Information: RRY Publications LLC 116 Ivywood Lane • Wayne, PA 19087 TOLL FREE: 1-888-749-2153 Fax: 610-260-6451 Robin R. Young, CFA Editor and Publisher [email protected] Elizabeth Hofheinz, M.P.H., M.Ed. Senior Writer [email protected] Walter Eisner Senior Writer [email protected] Tom Bishow Vice President of Sales [email protected] Biloine W. Young Writer [email protected] Don’t miss your chance! Advertise with Orthopedics This Week Suzanne Kirchner Production Manager [email protected] Jayme Johnson Production Coordinator [email protected] Click Here for more details or email [email protected] Tom Bishow | 410.356.2455 (office) or 410.608.1697 (cell) Dana Bader Graphic Designer [email protected] 1-888-749-2153 | www.ryortho.com
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