5 Thoughts on Growth Strategy in the Complex Spine Market: K2M CEO Eric Major

Laura Dyrda -   Print  |

K2M CEO Eric Major recently appeared on the NASDAQ CEO Signature Series.

K2M develops minimally invasive devices for complex spinal procedures. "As an organization, we focus on treating the most difficult spinal pathologies," said Mr. Major in the broadcast. Here are five things to know about the company's growth strategy going forward.

 

1. The company recently announced their initial public offering to take them to the next level. The company brought 11 devices to market since 2011. "The regulatory environment is always changing but what we have to do as an entrepreneurial-focused organization is continue to find ways to innovate," said Mr. Major.

 

2. The company has an international reach and global team to provide surgeons from around the world with the type of instrumentation they need to return their patients to normal life. The company reported 30 percent growth overseas as well. About 50 percent of the company's unit sales go overseas.

 

"The network of deformity surgeons and surgeons treating the most difficult spinal pathologies is a global network," he said. As a result, the company has a dedicated team to bring their technologies to surgeons around the world.

 

3. K2M recently posted revenue of more than $157 million, up 17 percent over the year before and 160 percent over five years ago. "Our objective is to continue to deliver 14 percent to 16 percent growth on an annual basis," said Mr. Major. "We've invested heavily. Our losses in the past couple of years was because of that investment in people; our investment in our engineering team our distribution sales force and really to build out and grab market share."

 

4. The company plans to differentiate themselves by developing innovation and obtaining exposure to surgeons. "What we have to do is provide surgeons with forward thinking innovation. We have to be responsive to their needs," said Mr. Major. The spine market is a $10 billion market, and the complex spine market is about $1.2 billion globally.

 

"Today our primary competitors in that space are Medtornic and J&J, and they have great products but we believe to win in that space we have to continue to innovate and for our investors deliver that top line growth and move toward profitability," said Mr. Major.

 

5. A private equity investment in 2010 brought in the capital to allow K2M to scale their business to go from disruptive technology to a proven platform. The capital allowed the company to scale the new products and expand. Part of the proceeds from the new IPO will facilitate continued growth in regions where they are strong as well as countries and cities where they hope to grow.

 

More Articles on Spine Surgery:
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