For the past few years, medical device VCs have slowly steered their capital away from spine start-ups and towards other opportunities in orthopedics, like extremities. The diversion of capital has been slight. Spine-based start-ups still draw roughly 40% of all venture capital dollars committed to orthopedics companies. (See Also see "Are Device VCs Becoming Spineless?" - In Vivo, 1 May, 2011..) But the once white-hot sector has been tempered by concerns over a combination of efficacy and economics. Third-party payors are increasingly unwilling to pay for procedures performed under certain circumstances, and the result – a shrinking or stagnant spinal market – cannot support the number of products currently available, let alone new ones.
The spinal boom that began five years ago seems to be over, and that lack of interest is now evident in mergers and acquisitions. An analysis of Elsevier's Strategic Transactions...
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