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JOINTS
Rothman Orthopaedic Institute adds 5 New York-
based surgeons to newly opened New Jersey
location: 5 things to know
By Laura Dyrda
P
hiladelphia-based Rothman Orthopae-
dic Institute continued its growth this
year by adding five New York-based
surgeons to its new practice location in
Montvale, N.J.
Here are five things to know:
1. e five surgeons who joined Rothman
include:
• Rocco Bassora, MD, a shoulder and
elbow surgeon
• Andrew Beharrie, MD, a sports medi-
cine surgeon
• V. Christopher Inzerillo, MD, a sports
medicine surgeon
• Samir Sodha, MD, a hand and wrist
surgeon
• Howard Yeon, MD, a spine surgeon
2. e new surgeons practice out of the
group's new Montvale, N.J., office location
Sept. 24. e office includes nine exam
rooms and an onsite X-ray.
3. Rothman Orthopaedic Institute now in-
cludes 34 locations across Pennsylvania, New
Jersey and New York. e practice entered
into the New York market last year through
a strategic affiliation with New Hyde Park,
N.Y.-based Northwell Health.
4. e new Montvale location is expected to
broaden Rothman's patient base, accessing
patients in Bergen County and surrounding
areas in New York.
5. e five new surgeons have access to
Rothman's tools and in-network contracts
with all major insurance carriers.
"We couldn't be more excited to join such an
esteemed group as Rothman Orthopaedic
Institute," said Dr. Sodha. "ey have a fan-
tastic reputation in the world of orthopedics
and will offer us a ton of resources which we
can take advantage of to bring our patients
the best musculoskeletal care available."n
How K2M will fit into Stryker's business model — will it affect long
term financial targets?
By Laura Dyrda
S
tryker signed an agreement to acquire K2M, a fast-
growing spine device company focusing on minimal-
ly invasive solutions for complex spinal surgery Aug.
30 for $1.4 billion.
At the 2018 Wells Fargo Securities Healthcare Conference
on Sept. 6, Stryker Vice President of Strategy and Investor
Relations Katherine Owen addressed the acquisition and
discussed whether the move indicates a change in the
company's sales strategy and financial targets.
"We are incredibly excited about [the acquisition] because
as strong as momentum is across Stryker, spine has been
a strategic gap for us and this clearly puts us on a path
to category leadership with a really innovative portfolio
of products," she said. The company plans to give formal
guidance on the acquisition during the fourth quarter earn-
ings call, but she reiterated Stryker is still committed to its
long term financial targets, including:
• Delivering a minimum of 30 to 50 basis points of
operating margin expansion
• Hitting 9 percent or better earnings growth
"Inclusive of this acquisition, we are still on track to deliver
that," she said.
The Washington Business Journal examined the transac-
tion and outlined what it could do for K2M, as well as why
Stryker decided to make the deal. Here are five things to
know from the report:
1. In recent years, Stryker's spine business has underper-
formed, with revenue growth of around 1 percent from
2015 to 2017, while other aspects of the company have
reported top-line growth. Internal efforts to grow through
research and development as well as smaller tuck-in ac-
quisitions did not turn around performance.
2. The acquisition gives Stryker more scale and additional
innovation in the complex spine segment, which includes
procedures performed by high-volume surgeons that
generate significant revenue, according to the report.
3. Stryker could decide to invest more in K2M's research and
development, moving its investigational projects forward.
4. Among its recent developments, K2M has 3-D printed
spinal implants. The company began using 3-D printed
technology to manufacture implants in 2016 and has
been on the forefront of that trend. Since then, the com-
pany has reported five to eight new spine implants per
year, according to the report.
5. For the first half of 2018, K2M reported $141.5 million
in revenue, an 11 percent increase from the previous year
after bringing in new surgeons to use their products in the
U.S., Australia and Japan. n
