Centinel Spine ® , LLC | Top Orthopedic Solution Company 2019

MedTech Outlook Magazine

Centinel Spine®, LLC
Motion-Preserving and Fusion Solutions for Clinical Success

John Viscogliosi, Chairman & CEO, Centinel Spine®, LLCJohn Viscogliosi, Chairman & CEO
A healthy neck and lower back is a pre-requisite to a golfer’s success. The lower back, sandwiched between the two most vital mobile joints, the hips and the thoracic spine, is meant to provide the golfer a strong core and stable base, to power the club through the ball. With an unhealthy back, a golfer exerts enormous pressure on the lumbar spine, precluding him or her from generating adequate torque and rotation in the golf swing.

It’s this incessant pressure on the cervical and lumbar regions of the spine that has resulted in neck and lower backache to emerge as a universal predicament among golfers. Case in point Tiger Woods, who has undergone four back surgeries in the span of a few years. Centinel Spine, the only orthopedic solution provider in the world that offers patients both lumbar and cervical total disk replacements, is helping athletes alike prolong their careers by overcoming chronic neck and back ailments. Just ask Rory Sabbatini, a former Masters runner-up, or Brian Gay, a winner of four PGA Tour titles, the lasting impact of Centinel Spine’s products.

Sabbatini, who spent 22 weeks as a top-10 player during the 2007- 08 season, was convinced that his worsening cervical spine had prematurely ended his professional golf career. That was until Sabbatini had one of Centinel Spine’s prodisc® Total Disc Replacement devices implanted in his cervical spine. “The reason our products get chosen by high profile athletes is because their doctors recommend our motion preserving or Integrated Interbody™ fusion products. They know our devices won’t fail the active individual,” says John Viscogliosi, the Chairman & CEO of Centinel Spine, the largest privately-held spine company focused on anterior column reconstruction.
One of Centinel Spine’s unique fusion products is STALIF L™, the first FDA-cleared, minimally invasive surgical (MIS) lateral lumbar Integrated Interbody system with compressive lag screw fixation. The STALIF L Integrated Interbody fusion devices are primarily designed to maximize lumbar fusion for surgeons. According to Viscogliosi, surgeons saw the need for optimized compressive fixation, for improved fusion to occur. “Our Integrated Interbody cages, which come with screws, provide compression, and that allows for bones to fuse together,” says Viscogliosi, before explaining that while similar products in the market focus on keeping the interbody cages in place, the STALIF L line is different because the screws and cages co-function to create better fusion.

On the surface, Centinel Spine’s primary focus is to provide prominent surgeons with “anterior access spinal solutions.” Its suite of fusion and motion preserving devices is so advanced that it can be customized based on the anatomy of a patient. While market competitors offer a “one-size-fits-all” device, Centinel Spine takes pride in providing multiple designs for the bone-implant interface.

The turning point for Centinel Spine came in December 2017, when the West Chester, PA-based organization acquired the prodisc Total Disc Replacement portfolio of cervical and lumbar artificial disc systems from Johnson & Johnson. The prodisc platform, acknowledged as the most implanted arthroplasty system in history, is the only total disk replacement platform for both the lumbar and cervical spine. After acquiring prodisc, Centinel Spine tripled its employee count from 30 to 106. More importantly, however, Centinel Spine upgraded its product portfolio in a way that surgeons can now address patients with either a motion preservation or fusion solution. “We can now provide prodisc solutions to thousands of new patients, who would have otherwise never had access to it. We took a dying product and turned it around,” adds Viscogliosi, who holds over three decades of operations and turn-around experience in the orthopedic industry.

Top 10 Orthopedic Solution Companies - 2019

Company
Centinel Spine®, LLC

Management
John Viscogliosi, Chairman & CEO

Description
An orthopedic spine solution provider which, through its portfolio of fusion and motion preservation products, provides surgeons with the widest breadth and depth of technology platforms for anterior column reconstruction

Centinel Spine®, LLC News

Centinel Spine® Announces Record Worldwide prodisc® Total Disc Replacement Revenue and EBITDA-Positive Second Quarter 2023

• Second quarter 2023 worldwide prodisc® Total Disc Replacement (TDR) revenue exceeded $17.5 million in sales—a new record—on 64% growth over second quarter 2022 and sequential 24% growth over first quarter 2023, the company’s previous best quarter.

• Strong operational performance coupled with record-breaking global revenue resulted in Centinel Spine’s first EBITDA-positive quarter since acquiring prodisc in December 2017.

• Second quarter 2023 prodisc TDR sales broke records by geography and by product segment—with U.S. and International prodisc sales growing 72% and 41% YOY, respectively, as well as global cervical and lumbar prodisc sales growth of 79% and 45% YOY, respectively.

WEST CHESTER - Centinel Spine®, LLC, announced record second quarter 2023 financial results in both revenue growth and profitability. Strong operational performance coupled with record-setting prodisc TDR revenue resulted in the Company achieving its first EBITDA-positive quarter since acquiring prodisc in December 2017. Centinel Spine’s record quarterly results were driven through both U.S. and International success in the Company’s cervical and lumbar prodisc TDR businesses. A key to the success in the U.S. was continued strong surgeon adoption and accelerated procedure volume of the Company’s new prodisc C Vivo and prodisc C SK cervical TDR system.

According to Orthopedic Spine Surgeon Jason Billinghurst, MD, from IntegraMed Spine, Wellington, Florida, an early adopter of the new prodisc cervical system, the introduction of prodisc C Vivo into his surgical practice has had a transformative impact. This innovative device has enabled him to carry out spinal disc replacement procedures with enhanced precision, providing his patients with renewed hope by preserving and sometimes restoring mobility. The implementation of prodisc C Vivo has also allowed him to conduct decompressions that he believes would not be feasible with certain other less-constrained devices on the market. Patients have shown quicker recovery times compared to traditional spinal fusion methods, and Billinghurst is gratified by the substantial positive influence this device has had on his patients' lives.

Centinel Spine CEO Steve Murray expressed satisfaction with the fifth consecutive record quarter of prodisc TDR (Total Disc Replacement) revenue on a global scale. Both the cervical and lumbar TDR systems have exceeded performance expectations in their respective markets. The prodisc technology uniquely enables surgeons to tailor the disc replacement based on patient needs for both cervical and lumbar TDR. The company is motivated by the fact that an increasing number of patients are finding relief from debilitating spinal conditions through their technology. The company intends to further expand the U.S. launch of prodisc C Vivo and prodisc C SK by focusing on medical education, equipment enhancement, and successful collaboration with distributor partners.

Highlights of the second quarter of 2023 include worldwide prodisc TDR revenue surpassing $17.5 million, marking a record-breaking period for the company. This revenue reflects a remarkable growth of 64% compared to the same quarter in 2022 and a sequential growth of 24% over the previous quarter, which was also a record. The growth has been driven by the limited release of the new prodisc C Vivo and prodisc C SK cervical TDR system in the U.S. since September 2022, as well as global expansion in the prodisc lumbar TDR business. The U.S. prodisc cervical business exhibited a substantial 97% growth in the second quarter compared to the same period in 2022, while the global prodisc lumbar business grew by 45%.

The introduction of the new prodisc C Vivo and prodisc SK cervical TDR system in the U.S. has garnered rapid market acceptance. The system is now being used by almost 300 surgeons, with nearly 800 procedures performed in the second quarter of 2023. This represents over 50% sequential growth in procedure volume compared to the first quarter of the same year. The user base for the new system has expanded significantly, as evidenced by a more than 50% increase in average monthly users compared to the prior quarter. The majority of surgeons who adopted the new system in the first quarter of 2023 are repeat users, with many transitioning from other competitive systems.

The U.S. cervical and lumbar prodisc TDR business sustained strong commercial traction in the second quarter of 2023. The total user count increased by more than 50% since early 2022, and sequential growth exceeded 20% compared to the first quarter of 2023. The number of U.S. facilities utilizing prodisc TDR products increased by more than 45%, and the number of distributors selling the products expanded by over 20% compared to the second quarter of 2022.
In the first half of 2023, the worldwide prodisc TDR business generated revenue of nearly $32 million, representing a year-over-year increase of more than 50%. The growth was fueled by robust sales in both the U.S. and international markets, with U.S. prodisc sales growing by 56% and international prodisc sales growing by 38% year-over-year. Both cervical and lumbar prodisc product segments exhibited strong sales growth during the first six months of 2023, with cervical and lumbar prodisc TDR growing by 66% and 32% year-over-year, respectively.

The strong performance in the first half of 2023 can be attributed to the expanded release of the new prodisc cervical system, as well as increased adoption of one- and two-level prodisc lumbar due to higher user volume and broader reimbursement coverage. The U.S. cervical and lumbar prodisc TDR traction received a boost from significant growth in both customers and distributors during the first half of 2023. The number of surgeons and facilities using the system increased by nearly 40% year-over-year, and the number of distributors selling the prodisc technology grew by 20% compared to the second quarter of 2022. The addition of new surgeons using the prodisc technology more than doubled in the first half of 2023 compared to the same period in 2022, driven by a robust medical educational program conducted by the company that involved training sessions with over 550 surgeons.

Looking ahead to the full year of 2023, the company anticipates a growth rate of over 40% year-over-year for its global prodisc TDR business. This growth is expected to outpace the estimated 11% compound annual growth rate (CAGR) of the global TDR market, positioning it as the fastest-growing segment within the spine industry. The projected growth will be propelled by continued expansion in the prodisc lumbar business and strong adoption of the newly launched prodisc cervical system.