Leading medical devices company, CareFusion (CFN), has launched Avamax vertebral balloon, a minimally invasive device to be used during kyphoplasty, a procedure for treating spinal compression fractures. The Avamax vertebral balloon is part of a system, which includes a needle, bone cement and delivery instruments for kyphoplasty or vertebroplasty. The company is a leading player in the field of vertebroplasty procedures, an alternative to treat compression fractures.
We are encouraged to note that CareFusion has received favorable feedback from physicians during the limited release period of the product. The company has completed 300 case studies and found that 8 out of 10 physicians are willing to consider switching to Avamax.
To establish market penetration in the U.S. and drive sales of the product, CareFusion is taking all the necessary steps including the formation of a dedicated sales force team. The company also plans to launch the product in Europe. We believe this is a smart move by the company, given the huge potential of the global kyphoplasty procedure, which is currently estimated at $600 million.
Spinal compression fractures are generally caused by osteoporosis, which affects an estimated 10 million people in the U.S . With an ageing population, we expect the potential of this segment to increase further. In the U.S. , approximately 50% of women and 25% of men over the age of 50 will experience an osteoporosis fracture in their lifetime.
However, the economic uncertainty continues to remain a challenge for the company as it leads to a lower demand for elective procedures. Moreover, the presence of several players has made the environment highly competitive.
