Orthopedics Field
Orthopedics, a field that encompasses trauma devices and prostheses, accounts for 97% of Japan MDM's net sales. Aging populations and a growing number of sports participants are causing a greater variety of fractures and injuries. Meanwhile, calcium deficiency and other ailments which stem from changing dietary habits among young people are blurring the generational borders associated with such injuries. This backdrop is steadily driving demand in the orthopedics field forward and supporting Japan MDM's growth.
Trauma Devices
This category includes to nails, screws, plates and other products surgically implanted in the fracture site. These products are used in surgery to treat femoral neck fractures, most often suffered by the elderly, and other fractures from auto-related and other accidents. Trauma devices are the biggest source of revenues for Japan MDM, comprising 67% of net sales. They are major market players in Japan, which is valued at nearly ¥40.0 billion. Trauma devices are supplied by DePuy Orthopaedics, Inc. (formerly DePuy Ace), Warsaw, Indiana, a member of the DePuy Group, one of the world's foremost orthopedic device manufacturers. Japan MDM concludes five-year contracts with DePuy Orthopaedics to act as its exclusive distributor in Japan. This agreement ensures stable supply of high-quality trauma devices that have won great trust from medical institutions in Japan. The products it offers are used to treat fractures nationwide, and are diverse enough to fit the needs of virtually any patient. Japan MDM was the first to introduce trauma devices from the U.S. that are made of titanium alloy, which is light, strong and biocompatible. This move is also yielding other benefits, like simplifying surgical technique, enhancing postoperative recovery and resulting in shorter hospital stay. In fact, Japan MDM has established such a strong trust among orthopedic surgeons; therefore when it comes to trauma and fractures, the choice is Japan MDM.
Joint Prostheses
This category includes to products, made from artificial materials, that replace natural joints and restore functions severely damaged or lost due to disease or injury. While leveraging its sales channel to orthopedic surgeons built over the years, Japan MDM has been trying to complete portfolio to meet their needs. Joint prostheses comprise the strategic product that Japan MDM seeks to gain a firmer foothold with in the orthopedic market. It is worth approximately ¥80.0 billion, nearly twice as large as that for trauma devices. Having grown steadily, joint prostheses now account for nearly 24% of Japan MDM's net sales. In 1994, Japan MDM confirmed its move into the field of joint prostheses with the acquisition of Ortho Development Corporation, a joint prosthesis manufacture in Salt Lake City, Utah. After establishing a development and manufacturing framework, Japan MDM launched Ortho Development Corporation Bipolar System, hip prosthesis in Japan in 1996. This milestone was followed by launch of the Balanced Knee System for knee prosthesis in 2001. In 2002, Ortho Development Corporation began the full-scale sale of joint prostheses in the U.S., a market with a scale that dwarfs that of Japan. For joint replacements today, there is greater demand for different product sizes and variations to better match individual patient anatomy. Surgeons too have grown more explicit in what they expect from these products. Japan MDM, with the development and manufacturing framework firmly in place, has the powerful competitive edge to meet these challenges rapidly and in-depth, and to provide stable supply of joint prostheses over the long term.
Spinal Fixation Devices
Spinal fractures, osteoporosis and other diseases can cause spinal instability, which may lead to severe pain and other neurological symptoms. One treatment option is to fix this spinal instability directly through corrective surgery. Spinal fixation devices are essential for this procedure. While the market for these devices, at around ¥19.0 billion, is roughly a third of that for trauma devices, it is the fastest growing sector of the orthopedics field. Japan MDM has just started to sell these devices in 2000, so they still account for a mere 3% of net sales. That figure, however, is expected to increase as Ortho Development Corporation keeps development of new products, and Ortho Development Corporation's domestic sales framework is bolstered and the market continues to expand. In February 2004, Japan MDM acquired the exclusive distributorship in Japan for spinal fixation devices produced by Spine Next S.A. , Bordeaux, France. Japan MDM regards this agreement as a means of fulfilling the product portfolio in spinal fixation devices and making up for lost time as a relative latecomer to this market.
Artificial Bone Fillers
Bioceramic bone paste, an artificial bone filler for the treatment of bone fractures, tumors and other defects, is prepared by mixing a powder and solidifying solution to form a paste or putty-like substance that is applied to bone fractures or other defects. The paste then solidifies inside the body and becomes hydroxyapatite (HAP), an inorganic structural element of bone. This process stimulates regeneration compatible with surrounding bones. The bone paste Japan MDM will offer will be supplied by NGK Spark Plug Co., Ltd. Looking ahead, the bone-filler market is expected to grow due to a higher incidence of osteoporosis in Japan's aging population. The introduction of bone paste will enhance Japan MDM's product offering in the orthopedic field and promises to create synergies with other products. Japan MDM plans to begin sales of bone paste in November 2005.