Wednesday, July 8, 2009

Orthovita no longer a Paddlepuss!

Recently the Spine Blogger was surfing the web (it is summer and I feel like hanging ten) and stumbled upon Orthovita's website. The new look, which has been around for at least a year, was probably re-designed in anticipation of its newest addition to its product portfolio. Finally, after all the hoopla CORTOSS has arrived? I must admit, I say this with great envy, this is a cool product. And yes readers, I do not work for Orthovita, but I do own stock in this company. Of all the products that have been recently released, I believe that this will put "La VITA Loca" (can you hear Ricky Martin) over the hump. Watch this stock over the next few months. (I'm putting tremendous pressure on Chris Smith and his sales management team) If you did not buy VITA when it was at its all time low, now is the time to invest in a stock that is on the verge of shooting up to $7-8 per share.

Kyphoplasty and Vertebroplasty laid the foundation for an incredible market in treating vertebral compression fractures (VCFx) in spine. The key to Kyphon's revenue was the cost of the balloon to expand or reduce a collapsed fracture so that PMMA could be injected into the space restoring the integrity of the affected vertebra. The average cost for "da balloon" has been reported at $4,000-$5,000 per case. Even though there had been some challenges regarding adjacent vertebral fractures associated with using PMMA, CORTOSS is on the verge of setting a new standard.

So where are the advantages? Cortoss' non-toxic chemical make-up reduces the exothermic quality of this material in comparison to PMMA. In addition, with an excellent modulus of elasticity, it should minimize adjacent vertebral compression fractures. When PMMA is injected into a VCFx the axial loading affect on the adjacent bodies is like bouncing off of concrete, and we all remember those articles in the NY Times regarding the efficacy of Kypo/Vertebroplasty a few years ago. This material will provide the surgeon with a product that has versatility, exceptional viscosity and handling characteristics.

So if you're ready to get "amped" because a "tube" is in site and you want a "bitchin" investment that can turn "epic" now is the time to catch the wave.

1 comment:

  1. I agree with your assessment of Orthovita's CORTOSS material and of the company in general. It is very cool and much better than the PMMA alternative, but PMMA has a huge head start on CORTOSS. Just like Orthovita's VITOSS working very well, industry never took to it like they should have. Selling a product that is a bit better than a product that a surgeon has had success with and has used for a very long time is a difficult sale.

    The company's revenue should grow substantially and the stock will go up a bit, but is will be a steady growth like VITOSS has been and not the 'big bang' that the company wants and should have.

    Orthovita is a definite long play in the market and will continue to grow, but maybe not like you think. I am also concerned about the roduct pipeline for them. I have not heard of anything else coming down the road for Orthovita and they might have been relying too much on the instant success of CORTOSS.

    I do hope that I am wrong and the company takes off or is purchased in the future as they have some great people working at that company who have been waiting for the stock to do something great.