Conformis, an orthopedics company featuring personalized knee and hip replacement products, recently announced a multi-year agreement with Vizient, a member-driven health care performance improvement company. Conformis contends that the agreement will connect them to a significant number of members, which include academic medical centers, pediatric facilities, community hospitals, integrated health delivery networks, and non-acute health care providers.
“We are excited to offer personalized orthopedic implants to Vizient’s large membership of healthcare facilities through this contract,” said Mark Augusti, chief executive officer and president of Conformis. “As more orthopedic patients and surgeons seek personalized solutions, increased awareness and ease of access to our product portfolio is more important than ever. The Vizient agreement connects us to a significant number of providers, many of which have limited access and awareness of our products and our new Platinum Services Program.”
The company’s knee and hip portfolio includes:
- Identity Imprint, a personalized knee replacement system.
- Image-to-Implant Platinum Services Program, a patient-elected deluxe upgrade option for fully personalized knee replacement implant.
- Cordera Match Hip System, a personalized primary hip replacement solution.
University of Washington in Seattle researchers reported in an annual meeting paper that fully personalized total knee replacements are more cost-effective when compared to a standard, of-the-shelf implant. Additionally, ongoing research suggests that fully personalized implants reduce total costs to the health care system. This is due to quicker recovery statistics and less likelihood of follow-up corrective or revision surgeries.
This partnership comes after the surprising company announcement in 2020 adding a standard off-the-shelf knee implant to its portfolio in addition to its higher-cost customized implants. The decision came after Conformis took a substantial hit during the beginning of the COVID-19 pandemic. In March of 2020, the company had to furlough 80 employees—about one-third of its workforce—due to a sharp decline in elective procedures and the closing of many elective surgery centers to help stop virus spread and funnel medical supplies to hospitals overwhelmed with COVID-19 cases. In April of that year, the company received a $4.7M loan through the Paycheck Protection Program and was able to bring most of its previously furloughed staff back to work.
At the time, Augusti said that the second quarter of 2020 was also impacted by the pandemic, but saw a fairly quick resumption of scheduled procedures, “going from April when the company was down 94%, to being down 39% in May, and then down just 9% in June.”
The company’s 2021 year end summary showed a total revenue of 99.9 million, an increase of 45% year-over-year on a reported and constant currency basis. Additionally, Conformis reported 2022 first quarter revenue totaling $15.6M, an increase of 12% year-over-year on a reported basis and 13% on a constant currency basis. The company’s 2022 second quarter summary is set to be released on August 8.