Orthopaedic Product Technology

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Orthopaedic Product Technology

• All orthopaedic related technologies do not have
  commercial potential
• Academic musculoskeletal research abounds
• Few meaningful clinical treatments or products
  result
• Commercial success requires practical technology,
  a capable industry, and a clinical need
• Indiana leads the world in industrial application
  of orthopaedic product technology
• Indianas universities can benefit that industry
  through applied research and scientific education

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Global Orthopaedics Market
2005
2009E
2005-2009E CAGR 10
22.3B
32.6B
Source Merrill Lynch 8/28/06
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Global Orthopaedic Market
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Possible Directions for New Orthopaedic Product
Technologies

• Advanced treatment in developed markets
• Less invasive total joint replacement
• Expanded treatments in under-developed markets
• Implant systems for economically developing
  countries
• Shifting prosthetic treatments to regenerative
  treatments
• Grow factor induced bone repair
• Providing treatment to unmet clinical needs
• Cartilage repair

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Global Orthopaedics Market
2005
Reconstructive, spine , and biologic orthopaedics
represent 2/3 of the orthopaedic market and are
the most active areas of technology application
Market 22.3B, 13 Growth
Source Merrill Lynch 8/28/06
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Biologic Orthopaedic Products MarketRegenerate
rather than replace

• U.S. Sales Dominated
• Bone Repair Dominated
• 50 is One Product

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Global Orthopaedic Biological Products Market
Market 1.2 B
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Orthopaedic Biologics Market

• Bone growth bone replacement dominate
• 90 of the market is bone product related
• Cartilage, ligament, etc. may be promising but
  not currently significant market contributors
• The spine is the most common application of
  biologics
• United States market dominated
• 90 U.S. Sales

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Biologic Science DominatesCurrent Academic
Orthopedic Research

• Orthopaedic Research Society has become largely a
  Musculoskeletal Basic Research Society
• The chondrocyte, growth factors, etc. has become
  the most popular research topics
• Will this research transform future orthopaedic
  products markets???
• Is Indiana likely significant participant in this
  area??

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Reconstructive Orthopaedics

• Largest piece of the orthopaedic market pie
• The most profitable segment of orthopaedics
• Hugely favorable demographic
• Indianas core competency

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Orthopaedic Reconstructive Products Market
Market 8.8 B
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Arthritis Impact Increases with Age
Female
Male
CDC MMWR Weekly May 04 2001 /50(17)334-336
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U.S. Population Over Age 65
Millions
An Aging World 2001, International Population
Reports
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• Age 65 years is not as old as it use to be

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Remaining Years of Life at Age 65 Years The
Females are Winning
Female
Male
Health, United States, 2004 with Chartbook on
Trends in the Health of Americans
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Body Weight is a Growing Thing
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U.S. Adult Population Weight
Male
Percent of Population
Female
Body Mass Index
Flegal etal. JAMA 2002
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U.S. Adult Population Weight CDC data, Obese gt 30
BMI
Female
Male
Percent of Population
Age Range
Flegal etal. JAMA 2002
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U.S. Adult Population Weight CDC data, Obese gt30
BMI
Female
Percent of Population
Male
Data Period
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Arthritis is Associated with BMI
Incidence of Arthritis ()
Body Type by BMI
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Arthritis is Becoming More Common
Incidence of Arthritis Joint Pain ()
Survey Time (Year)
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U.S. Total Joint Procedures Total knees now
dominate
TKR
THR
Year
Solucient Inpatient Data Asset, MDI Reports and
Zimmer data
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The Evolving Population
A Favorable Trend for Orthopaedics
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Spinal

• The spinal products market has been the most
  rapidly growing orthopaedic product segment for
  more than a decade
• This market growth was technology driven
• new developments in the spinal procedures and
  associated products

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Global Orthopaedics Market
2005
4.2 billion market today having grown from a few
million market 20 years ago
The most common application of biologics is in
the spine
Market 22.3B, 13 Growth
Source Merrill Lynch 8/28/06
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New Spine Technologies Have Created a New Spine
Market
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Opportunities for Indiana

• Build on present implant product strengths
• Total joint replacement
• Spine
• Trauma
• Sports medicine
• Supply the world with Indiana product technogies
• Develop products and technologies for the rest of
  the world
• Provide favorable conditions in Indiana a for
  global business

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Technology priorities for Indianas orthopaedic
industry

• New implant designs
• New implant materials
• New surgical techniques
• New surgical instrumentation

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Thank You