New Shoulder Products Bolster Growth


Arthrosurface Revenue Growth Bolstered by Shoulder Product Solution

FRANKLIN, Mass., Sept. 16, 2011 /PRNewswire/ — Arthrosurface, Inc. (, the developer of less-invasive joint resurfacing systems, recently announced the release of its Glenoid resurfacing product line.  The company reports that release of this product line as a complement to its full line of shoulder resurfacing devices has substantially bolstered its shoulder revenue.  The company boasts that it offers a complete solution to shoulder resurfacing.  As its highest early adoption revenue generator, the company believes that its suite of shoulder products can produce substantial penetration into the fast growing extremities market.

Arthrosurface began product commercialization in 2004 and first became profitable in 2009 amid the continuing economic recession.  During its early stages, the company was funded by venture capital and angel equity financing.  In recent years, the company has become cash flow positive and relies on modest debt financing to fund its growth initiatives.  Revenue in 2010 showed strong double digit growth and forecasts for 2011 are pacing to similar levels,  In the third quarter of 2011, the company reported that it had surpassed a significant milestone with over 30,000 cases having been performed using its implant devices.

The company expects to at least double its revenue in the shoulder segment in 2012.  The company’s patella-femoral and unicondylar knee products have continued to be its largest revenue generators for 2009 and 2010 by posting annual growth of 148% and 42%, respectively.  The expectation is for additional growth across all product segments, in 2012, given the company’s recent sales force expansion and expanded European presence.

Although Arthrosurface does not publically disclose its financial statements, it claims that its year over year revenue growth has significantly outpaced that of other orthopaedic industry leaders.  The company attributes its growth to accelerating adoption within the medical community, direct sales force expansion, and its alignment with high growth rates seen in its target demographic of patients aged 49 – 64 years.

“We were the first company in the world to offer true inlay resurfacing so that surgeons were able to map the patients’ surface geometry in 3D during surgery.  Given our continued product innovation across all of our lines and the outlook for joint resurfacing in the fast growing middle-aged patient demographic, we are confident for the continued long-term growth of our company,” said Lester Fehr, VP of Sales and Marketing.

Using the latest US census data as a reference, Arthrosurface management states that the target population for its products continues to grow.  They point out that the growth rate of the demographic is twice as high for people aged 46 – 64 as those over age 65.  According to the census data, this is the fastest growing segment of the US population with an increase of over 31% in the last 10 years. Because the growth rate of the target population for Arthrosurface products is higher, the company states that it is in a better position for growth than traditional orthopaedic and sports-med companies.  The latest data shows that the 25 – 44 age cohort, which is largely targeted by sports-medicine, is down 3.4%, while the over 65 year old joint reconstruction demographic has a growth rate that is half that of the 46 – 64 year-olds.

Steve Tallarida, President, stated “Arthrosurface continues to grow much faster than traditional implant companies because its technology is designed to address patients in the fastest growing age population. These patients are too young for joint replacement and most have already failed early treatments such as injections and cartilage procedures. They are all looking for an interim treatment that can give them pain relief and restore their function so they can resume their active lives. If you have a cavity, you don’t go to the dentist to get dentures, rather, you get a filling.”

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