Becker's Spine Review

33 DEVICES & IMPLANTS Ms. Billeter explained CMS also established clear reimbursement pathways for inpatient and outpatient facilities. "at really means that today, your surgeons and your facilities can choose the right site for the patient based on their unique medical necessity," she said. A Milliman analysis found coflex saves 14 per- cent to 27 percent in per-member per-month costs compared to fusion. Ms. Billeter noted Medical Science Liaisons can help ASCs with their contracts by presenting this cost-saving information to payers. "We feel very confident that the insurance companies, i.e. the commercial payers, are going to give us coverage policies, as soon as maybe even this year," Ms. Billeter said. Medicare national average payment for cof- lex is as follows: • Hospital inpatient — $17,253 • Hospital outpatient — $14,698 • ASC — $10,542 "Some of the things that are helpful in getting payer coverage are the spine societies writing policies," said Ms. Billeter. "at has begun to happen already." In December 2016, the In- ternational Society for the Advancement of Spine Surgery published a coverage recom- mendation for decompression with interlam- inar stabilization. Ms. Billeter said they hope to see the North American Spine Society follow suit with coverage recommendation soon. n Medtronic Completes $6.1B Sale of Partial Patient Monitoring & Recovery Division Businesses to Cardinal Health: 5 Key Notes By Laura Dyrda M edtronic completed the sale of its patient care, deep vein thrombosis and nutritional insufficiency business within the patient monitoring and recovery division of its minimally invasive therapies group. Here are five things to know: 1. Medtronic sold the portion of its patient monitor- ing and recovery division to Cardinal Health for $6.1 billion in cash. 2. Medtronic expects a modest dilution on a net ba- sis to the fiscal year 2018 non-GAAP earnings per share of around $0.18 from the sale. The company plans to provide historical comparable financials and incorporate the divestiture into the 2018 fiscal year guidance. 3. When Medtronic releases its next quarterly fiscal report, the company will discuss the divestiture's fi- nancial impact. 4. Medtronic's financial advisors on the transac- tion were Piper Jaffray and J.P. Morgan Securities. Medtronic's legal advisors were Wachtell, Lipton, Rosen & Katz and Baker McKenzie. 5. For the 2017 fiscal year, Medtronic reported $29.7 billion in revenue, a 5 percent increase over the same period last year. n K2M Reports 10.9% Q2 Revenue Increase, $9.1M Net Loss: 7 Things to Know By Laura Dyrda K2M reported second quarter revenue increased 10.9 percent to $65.7 million. Here are seven things to know: 1. The domestic second quarter revenue jumped 12.2 percent to $50.8 million. The segment breakdown includes: • U.S. complex spine market: 9.7 percent growth • U.S. minimally invasive surgery market: 25.4 percent growth • U.S. degenerative market: 9.9 percent growth 2. K2M reported $9.1 million net loss for the quarter, down from $11.1 million over the same period last year. 3. During the second quarter, K2M launched the MESA 2 Cricket in the deformity line and introduced the SAHARA AL Expand- able Stabilization. The company also achieved FDA clearance for the MOJAVE PL 3D Expandable Interbody System. 4. Operating expenses hit $51.3 million in the quarter, up 4.9 percent from last year. The increase was driven by a $2.2 million increase in sales and marketing expenses. Loss from operations was $8.1 million. 5. The company's cash and cash equivalents hit $36.5 million and K2M reported $111.3 million in working capital. 6. K2M reported total revenue for the full year is expected at $263 million to $270 million, an 11 percent to 14 percent growth year over year. The company expects continued mid-teens growth in U.S. business for the year. Net loss for 2017 is expect- ed at $31 million to $34 million. 7. K2M hosted the annual Meeting of the Minds in Portugal during the second quarter, bringing together 100 international spine surgeons to discuss treatments and demonstrate its Bal- ance ACS platform. n

• Cover