DJO Invests in Next-Generation Augmented Reality Technology Primed for ASC Market Growth

Rhea-AI Summary

DJO, a subsidiary of Colfax Corporation (NYSE:CFX), has announced a strategic investment in Insight Medical Systems, specializing in wearable surgical navigation technologies. The key product, ARVIS®, is designed to enhance precision in total joint arthroplasties, featuring 3D displays and handsfree interfaces. The Computer Assisted Surgery (CAS) market is projected to grow at a CAGR of 32%, driven by a shift to Ambulatory Surgery Centers (ASCs). The ARVIS system aims to optimize surgical workflows, reduce costs, and is expected to launch in the latter half of the year, pending FDA clearance.

Positive

• Strategic investment in Insight Medical Systems to enhance surgical technology.
• ARVIS system expected to improve precision in joint arthroplasty procedures.
• Partnership allows leveraging DJO's sales channel for efficient product launch.
• Reduction in storage and sterilization costs by up to 50% with new implant systems.

Negative

• The ARVIS system is still pending FDA clearance.

DJO, a subsidiary of Colfax Corporation (NYSE:CFX), and a leading global provider of medical technologies to get and keep people moving, today announced a strategic investment in Insight Medical Systems (“Insight”), a technology company dedicated to wearable surgical navigation in orthopaedics. Insight’s flagship product, ARVIS® (Augmented Reality Visualization and Information System), will combine tracking cameras with both a 3D display and handsfree interface in an integrated eyepiece for total joint arthroplasty. Unlike other augmented reality (AR) platforms, ARVIS is the first system with proprietary hardware designed to assist arthroplasty surgeons in enhancing component positioning precision to improve joint arthroplasty outcomes.

ARVIS Next-Generation Augmented Reality System (Photo: Business Wire)

The Computer Assisted Surgery (CAS) Technology market is growing at a compound annual growth rate (CAGR) of 32%¹. Similarly, the shift in the site of care from hospitals to Ambulatory Surgery Centers (ASCs) is expanding rapidly. If half of routine total joint cases were done in the ASC, UnitedHealth Group quantified this shift as having the potential to help 500,000 patients avoid overnight hospital stays and save $3B annually². As surgeons look to incorporate technology into their surgical workflows whether at the hospital or ASC, the discussion often focuses on balancing the clinical benefit of a technology with the added time and cost associated with it. The high acquisition cost of current CAS systems can include a capital-intensive investment as well as per-case disposables and service contracts. These costs, along with the large footprint of technologies like robotics, are particularly restricting for ASCs.

“DJO® has been partnering with the orthopaedic surgeon community to understand their technology needs across all anatomies and in all settings in which they operate,” said Louis Vogt, President and General Manager of DJO Surgical®. “The Insight team has developed an impressive 3D AR technology that tracks the surgeon’s viewpoint and delivers navigation and patient-specific information right at the surgical site in a highly efficient and seamless workflow. ARVIS complements DJO’s ASC 360™ solutions and adds to our full range of implant technologies, surgical tools and digital care solutions that uniquely span the continuum of care.”

“We’re thrilled to partner with a leading MedTech company that has an impressive growth trajectory,” said Nick van der Walt, CEO of Insight. “DJO and Insight have a shared vision of improving clinical outcomes with technology in a streamlined, cost-effective way. We will build on the current capabilities of ARVIS in knee and hip arthroplasty and expand to other indications in orthopaedics.”

For ease of use, the ARVIS system will be compatible with existing surgical helmets, and a single tray of trackable instruments eliminates the need for disposables. Insight will leverage DJO’s sales channel to launch ARVIS in the second half of this year. The EMPOWR™ Partial, Primary and Complex Primary Knee and Hip implant systems will be compatible. The EMPOWR portfolio is the culmination of research, clinical legacy and material technologies that have resulted in hip and knee products that help restore healthy kinematics and provide surgical efficiencies optimized for today’s health care environment. Driven by premium, intelligently designed single-tray instrumentation, these implant systems have up to a 50% reduction in storage and sterilization costs compared to similar products on the market³.

For more information about DJO’s EMPOWR brand and ASC 360 offering, visit djoglobal.com/empowr and djoglobal.com/asc360.

About DJO®

DJO, a subsidiary of Colfax Corporation (NYSE:CFX), is a leading developer and distributor of high-quality medical devices that provide proven solutions for musculoskeletal health, joint reconstruction, vascular health, and pain management. The Company’s extensive range of products and integrated technologies address the orthopedic continuum of care from performance and mobility to surgical intervention and post-operative rehabilitation, enabling people around the world to regain or maintain their natural motion. For additional information about DJO, please visit www.DJOGlobal.com.

About Insight Medical Systems

Insight Medical Systems is a medical device company with a focus on orthopedic surgical procedures. It is leveraging augmented reality technology to provide a highly cost effective and easy-to-use alternative to surgical navigation systems and robots. Insight is currently expanding their R&D and Marketing teams to accelerate product development and prepare for commercialization. Prospective candidates should email resumes to info@insightmedsys.com. For additional information about Insight, please visit www.insightmedsys.com.

ARVIS is pending clearance by the FDA.
ARVIS is a registered trademark of Insight Medical Systems.

References

1. SmartTrak Computer Assisted Surgery Revenue projections: https://www.smarttrak.com/
2. https://www.unitedhealthgroup.com/newsroom/research-reports/posts/2020-12-10-research-ambulatory-surgery-centers-490916.html
3. Based on calculation of no. of trays compared to DePuy Pinnacle and Zimmer Biomet G7. https://www.ajog.org/article/S0002-9378(16)30358-1/pdf for cost of sterilization https://www.corailpinnacle.net/sites/default/files/2018-10/DSEMJRC05181044%20PINNACLE%20Surgical%20Technique.pdf
   https://www.zimmerbiomet.com/content/dam/zimmer-biomet/medical-professionals/000-surgical-techniques/hip/2336.2-GLBL-en_G7%20Surgical%20Technique.pdf
   Based on calculation of no. of trays compared to Oxford Uni Knee.
   https://www.zimmerbiomet.com/content/dam/zimmer-biomet/medical-professionals/000-surgical-techniques/knee/oxford-partial-knee-microplasty-instrumentation-surgical-technique.pdf

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005381/en/

FAQ

What is the significance of DJO's investment in Insight Medical Systems?

DJO's investment aims to enhance surgical navigation technology in orthopaedics, particularly through the development of the ARVIS system.

When will the ARVIS system be launched by DJO?

The ARVIS system is expected to launch in the second half of the year, pending FDA clearance.

How does ARVIS improve surgical outcomes?

ARVIS utilizes augmented reality to enhance precision in component positioning during arthroplasty.

What are the projected growth rates for the Computer Assisted Surgery market?

The CAS market is growing at a compound annual growth rate (CAGR) of 32%.

What cost savings can ASCs expect with the new technology?

If adopted widely, the shift to ASCs could save hospitals and patients approximately $3 billion annually.