Issue link: https://beckershealthcare.uberflip.com/i/1305916
18 DEVICES & IMPLANTS Medtronic CEO reports spine growth exceeds expectations, aims to keep taking market share By Laura Dyrda D espite the pandemic, Medtronic is still focused on growth in the spine arena and CEO Geoff Mar- tha said the company exceeded growth expectations during the 2020 Morgan Stanley Global Healthcare Conference. On Sept. 14, Mr. Martha was inter- viewed by Morgan Stanley's David Lew- is about the company's current position and where it sees the biggest oppor- tunity for growth. Medtronic acquired Medicrea, an artificial intelligence, pre- dictive modeling and patient specific implants company, in July and contin- ues to integrate the Titan Spine tech- nology into its portfolio. In 2019, Medtronic led the spine sur- gery market with 29 percent market share, but Johnson & Johnson and Nu- Vasive were right behind at 16 percent and 13 percent. All companies have re- ported continued growth. "In spine, we're growing faster than all of the multinationals," said Mr. Mar- tha, as transcribed by Seeking Alpha. "We grew as fast as NuVasive and we did not expect to grow quite as fast. So we're taking share from everybody except Globus right now overall, and that makes me mad. We're taking share in spine and that's going to con- tinue with all the technology we've got there." He also said Medtronic's deal with Medicrea is going well and its acqui- sition of Titan spine is a "home run." In May, the company reported Titan Spine contributed $15 million to its fourth quarter revenue as part of the Restorative Therapies Group. Bone morphogenetic protein sales dropped during the quarter due to the pan- demic, and overall spine revenue was down 31 percent. n IMED Surgical alleges orthopedic practice founder duplicated company's product By Eric Oliver I MED Surgical filed a federal lawsuit against Dror Paley, MD, the founder and direc- tor of Paley Orthopedic and Spine Institute, and others, alleging Dr. Paley illegally stole IMED's technology to help develop the Orthex External Fixation System. IMED Surgical claimed Dr. Paley used trade secrets and confidential information to duplicate IMED's system. IMED included Orthex, OrthoPediatrics and Squadron Capital in the lawsuit. Tamer Isin, IMED founder and principal member, said in the lawsuit that Dr. Paley learned trade secrets and technical know-how while he was a consultant for the company. He alleged that Dr. Paley used confidential information to claim IMED's novel external fixation system was his own. Dr. Paley allegedly filed for a patent, despite Mr. Isin holding copyright and interna- tional patent protections. Dr. Paley then sold the technology to Orthex, the lawsuit alleged. The technologies were then included in a $60 million sale to OrthoPediat- rics in June 2019, and the platform was divested to Squadron Capital for $25 million in January 2020. The system is now being marketed and sold by OrthoPediatrics. IMED said it became aware of Dr. Paley's activities in July 2019. IMED is seeking a declaratory judgment on who owns the Orthex External Fixation System, and is seeking a temporary ban on sales activity around the system. n Medtronic's Omar Ishrak to retire as chair: 6 things to know By Angie Stewart O mar Ishrak, PhD, plans to retire as Medtronic's executive chair and chair of the board, the company announced. Six things to know: 1. Effective Dec. 11, Dr. Ishrak's retire- ment marks the final phase of Medtron- ic's CEO transition plan. 2. Dr. Ishrak has served as Medtronic's board chair since he joined the compa- ny as CEO in June 2011. He retired as CEO in April 2020 and was succeeded by Geoff Martha. 3. To ensure a smooth leadership tran- sition, Dr. Ishrak stayed on as exec- utive chairman and chairman of the board. Mr. Martha, who has served on Medtronic's board since November 2019, is now expected to succeed Dr. Ishrak as board chairman. 4. Dr. Ishrak will continue working to advance healthcare and technology innovation through the "many other organizations he serves," according to Mr. Martha. In January, the Intel board elected Dr. Ishrak as chairman. 5. During Dr. Ishrak's time at Medtronic, the company's annual revenues doubled, and its market capitalization increased by more than $100 billion. 6. In a prepared statement, Dr. Ishrak said he is excited about Medtronic's future and "certain that under Geoff 's leadership and the collective guidance of the board of directors, Medtronic will reach new heights." n