Ossis is New Zealand’s only orthopaedic implant design company. Ossis focuses exclusively on the design and marketing of world class patient-specific orthopaedic implants, primarily for use in the treatment of complex degenerative defects of the pelvis and spine and sarcoma (cancer) of the pelvis.
The global orthopaedic implant market is valued at over US$47b and is projected to grow to US$75b by 20231.
Growth in global implant demand is being driven by baby boomers reaching the age where their own joints are failing them, increasing rates of obesity in the western world, younger people wanting to stay active and growth in the Asian middle class leading to increased healthcare spending. During this time of rising demand, the implant market is changing rapidly in the face of technological innovation. The declining cost of manufacturing using 3D printing technology and increasing availability of software to process and manipulate digital image data is creating opportunities to provide patients with previously uneconomic personalised treatments for complex anatomical defects. Treatments that are superior in their clinical performance compared to traditional treatment methods.
At Ossis, we use the latest digital image manipulation and design software and 3D printing in titanium to deliver life-changing treatments to patients, who may otherwise be permanently incapacitated. In comparison to commonly used “off the shelf” orthopaedic implants, our patient-specific implants provide surgeons with the ability to deliver more positive clinical outcomes for their patients.
We are a world-leader in 3D printed patient-specific orthopaedic implants. We have over 8 years of clinical data that showcases the clinical performance of our implants. Our ability to demonstrate, using this data set, that our implants fix the problem and do not fail, is fundamental to surgeon decision making when they are considering using an Ossis implant. This evidence, together with our intellectual property and experience, positions us to capture significant value as the patient-specific implant market develops.
We distribute our implants direct to surgeons in Australasia through a combination of pathways including our own engineering led specialists and direct sales resources, as well as third-party sales teams through our international partners, Corin Orthopaedic and LifeHealthcare, and several independent sales agents.
Our three-year strategic objective centres on becoming one of the most recognized patient-specific implant design companies in our target markets – the US and Australasia, and an attractive acquisition target. To achieve this, we aim to maintain a high performing, focused product range with strong brand recognition in our target markets. We will actively communicate the clinical efficacy of our products to targeted surgeon groups, through our distribution and clinical networks. Underpinning both our growth and our exit strategy is our focus on the scalability of our business model through continued development of our people-based processes and automation technologies, to further accelerate our competitive advantages.
We achieved revenue in FY18 of $1.2m and we are on track to exceed revenue of $1.5m in FY19. Our product gross margins are over 60% (before sales commissions). We are projecting to accelerate revenue growth to $6.1m by FY22, a cumulative annualized growth rate of 51%, between FY18 and FY22. This leads to a profitable bottom line from FY21 onward. Our revenue growth is driven through expanding our distribution networks in our target markets, to gain an increasing share of the developing global demand for patient-specific orthopaedic implants.
We are seeking to raise up to $1.35m to capitalise on this international growth opportunity. Funds raised will go toward key growth initiatives, including expanding our sales and marketing activities in international markets, gaining US regulatory approval for our AceOs pelvic implant and purchase of instruments sets required for surgeries.
Patient-specific implants are the way of the future. We believe patients should no longer have to put up with implants that weren’t designed to meet their specific needs. With the advancement of multiple technologies decreasing the cost to produce patient-specific implants, we can make a real difference in the quality of life for an increasing number of patients worldwide.
We invite investors to join us on this journey.
1 Orthopedic Implants Market – Global Opportunity Analysis and Industry Forecast, 2017 – 2023. Allied Market Research, April 2017.
2 European Orthopaedic Market. Avicenne Consulting, May 2017.
In addition to their extensive management and governance experience, our management team and directors have significant experience in the international orthopaedic devices market.
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