Becker's Spine Review

18 DEVICES & IMPLANTS How Johnson & Johnson plans to grow orthopedic, spine robotics in the next 24 months By Laura Dyrda J ohnson & Johnson is looking to robotics and digital surgery to drive future innovation and growth in the healthcare and orthopedics space. e company has made key acquisitions in the robotics space over the past few years, including the up to $5.75 billion purchase of Auris earlier this year, and Monarch, a min- imally invasive technology to obtain lung biopsies. e company also brought on Fred Moll, MD, a founder of robotics company In- tuitive and Auris, to lead its robotics efforts. Dr. Moll is interested in applying robotics to orthopedics, according to Executive Vice President and Worldwide Chairman of Med- ical Devices Ashley McEvoy's interview at the Wells Fargo Healthcare Conference. "e notion of digital surgery is also having an im- pact on orthopedics," she said, as transcribed by Seeking Alpha. "I would stay tuned," e company does have the Orthotaxy tech- nology in its portfolio, which Dr. Moll is re- viewing. Johnson & Johnson acquired the Or- thotaxy technology in February 2018 for an undisclosed amount with the goal of broad- ening the technology application beyond partial and total knee replacements. It also has a partnership with Verily, which formed the independent surgical solutions company Verb in 2015. "We have a very active program in our joint platform through the acquisition of Ortho- taxy, but also taking some of the benefits that we're learning from Verily and Dr. Fred Moll to really create a differentiated expe- rience for the surgeon and for the patient," said Ms. McEvoy. "So our digital surgery application in knees is on track for a mid- next-year filing." Ms. McEvoy said the company will like- ly launch the product at the end of 2020 or at the American Academy of Orthopaedic Surgeons Annual Meeting in 2021. By then, several other companies will all have had ro- botic orthopedic technology on the market including Stryker's Mako Surgical, Smith & Nephew's Navio and Zimmer Biomet's Rosa systems. Johnson & Johnson aims to differen- tiate its product from the others by its size. "It's the size of a shoebox," said Ms. McEvoy. "You can attach it to the table. Surgeons love flexibility it has on cleaning the plane of the bone." In August, Johnson & Johnson also acquired JointPoint, which has digital hip applications. Finally, the company has a partnership with Brainlab that Dr. Moll is working to optimize. e robotic spine market is also evolving, with Medtronic's Mazor system leading the way. Stryker also recently entered into an agreement to acquire Mobius Imaging and Cardan Robotics for up to $500 million, add- ing robotic technology to its spine division. "We have an ambition to stabilize [DePuy Synthes Spine] and then get back to growth," said Ms. McEvoy. "We're the sec- ond leading spine company in the world. Really, we're doing that in three ways: one is focusing on our top six countries that matter, not solving the top 25; No. 2, really shoring up commercial execution. So, we've had a dedicated sales force for over a year now in the U.S. as an example. We're start- ing to bear fruit on that. And then really focus the innovation pipeline on the areas that are going to matter most in spine … degenerative disc disease, deformity and complex cervical." n Stryker will add to spine division with $500M acquisition: 3 details By Laura Dyrda S tryker entered into an agreement to acquired a point-of-care imaging technology company for up to $500 million Sept. 4. Three key points: 1. Stryker acquired Mobius Imaging and its sister company Cardan Robotics in an all-cash transaction of $370 million. Stryker could pay up to $130 million more if the company meets development and commercial milestones. 2. Mobius Imaging and Cardan Robotics will be added to the Stryker Spine di- vision, adding intraoperative imaging technology to align with the company's implant and navigation offerings. Stryker aims to become a category leader in neurotechnology, orthopedics and spine. 3. The acquisition will likely have an immaterial impact on Stryker's 2019 earn- ings and is expected to close in the fourth quarter. "This acquisition brings expertise in advanced imaging and robotics as well as a robust product pipeline that add to Stryker's portfolio and will allow the spine division to provide more complete procedural solutions, including sales, service and support," said Stryker Group President of Orthopedics and Spine Spencer Stiles. At the end of 2018, Stryker finalized a $1.4 billion acquisition of K2M, a com- pany focused on minimally invasive technology for complex spine surgeries. n

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