Artificial discs are experiencing a cooling trend owing to an expected reduction in CMS reimbursement for both cervical and lumbar disc replacement. Many motion preservation companies are reaching critical regulatory milestones that will likely require a step-up in funding to conduct the large scale clinical studies needed to gain PMA approval. Today, companies in this sector are faced with the troubling task of either scaling back R&D programs to conserve cash or raising additional capital to take the next steps.

Artificial discs are experiencing a cooling trend owing to an expected reduction in CMS reimbursement for both cervical and lumbar disc replacement. Many motion preservation companies are reaching critical regulatory milestones that will likely require a step-up in funding to conduct the large scale clinical studies needed to gain PMA approval. Today, companies in this sector are faced with the troubling task of either scaling back R&D programs to conserve cash or raising additional capital to take the next steps. This article first appeared in the June 2008 issue of In Vivo.

Looking back on 2007 through the lens of acquisition activity reveals a lot about the current dynamics in the medtech industry. According to Windhover's Strategic Transactions Database, many of the 80 medical devices companies that were acquired last year came from the perennially hot orthopedics and cardiovascular markets. But in 2007, buyers found their targets in clinical areas that are starting to heat up: patient monitoring, in vitro diagnostics, minimally invasive surgery, and women's health. The acquirers themselves were a mixed bag--for a change, traditional buyers didn't make up the largest share. In fact, those billion dollar plus companies were as likely to divest as to acquire in 2007.

Brief summaries of recent product and company developments in the device industry, including: developments in continuous glucose monitoring, new liability conerns for device companies, medtech acquisitions in 2007, and the 2008 IPO market.