Kyphon Medical Device Company Intelligence Report

Summary

Headquartered in Sunnyvale, California, USA, Kyphon specialises in the design, manufacture and marketing of medical devices used to treat and restore spinal anatomy. Its main products repair spinal fractures caused by osteoporosis, trauma, cancer or benign lesions through a proprietary, minimally-invasive surgery known as balloon kyphoplasty. In addition, through the recent acquisition of InnoSpine, the company has gained Functional Anesthetic Discography (FAD), a proprietary, minimally-invasive technology for the diagnosis of axial lower back pain due to disc degeneration.

Kyphon was founded in 1994 and has grown rapidly in the past five years, with sales rising to US$306.1 million in fiscal 2005, from just US$36.1 million in 2001. The increasing adoption and acceptance of balloon kyphoplasty has been the source of this success, with the number of patient treated with the procedure rising from 9,000 in 2001 to 75,000 in 2005. This strong growth is expected to continue in 2006, with sales forecast to near US$400 million for the year.

The company's revenue is mainly generated in the US, with only 16% from the international market in 2005 and over 55% of this coming from Germany following the receipt of reimbursement in the country. Local reimbursement is also in place in Italy and Spain, with reimbursement expected in Austria and Switzerland in 2006, the UK in 2007, France in either 2008 or 2009 and Japan in 2009.

In addition to its in-house activities, Kyphon has expanded its technology through acquisitions and licensing. It has an agreement with Bonutti Research, under which the company has the exclusive right to develop minimally-invasive balloons and related products for use in the spine and the co-exclusive right to develop the products for orthopaedic applications outside the spine. Through an agreement with Dr Berger, Kyphon has exclusive rights to technology relating to expandable cavity creation devices. It also purchased Sanatis GmbH in 2003, adding patented calcium cement formulations and a cement delivery technology to its portfolio.

Medical Device Company Intelligence Reports provide a full review of the company's activities, from its origins to its latest corporate activity, including mergers and acquisitions, agreements, divestitures, major purchasing contracts and litigation. Sections are included on products, international activities and R&D, as well as a full, in-depth five year financial analysis. An introduction to each report and a full table of contents is provided for review. More than 60 Medical Device Company Intelligence Reports are currently available.

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