3Spine

Key People

• Marc Peterman - Co-Founder, Chief Executive Officer, President & Board Member
• Christopher Nelson - Chief Financial Officer
• Ron Yarbrough - Chief Operating Officer
• Scott Hodges - Co-Founder & Medical Director
• Craig Humphreys - Co-Founder & Scientific & Research Director

Assessment

Team

Aspect: Multiple successful MedTech entrepreneurs
Summary: The leadership team comprises experienced professionals with backgrounds in medical device development and finance.

The leadership team includes individuals with significant experience in the medical device industry, such as CEO Marc Peterman, who previously held roles at Facet Solutions and Medtronic, and CFO Christopher Nelson, formerly of Zimmer Biomet. This collective expertise enhances the company's ability to navigate the complexities of medical device development and commercialization.

Clinical Need

Aspect: Very Strong
Summary: The MOTUS device addresses a significant unmet need in lumbar spine treatment by offering an alternative to spinal fusion.

Spinal fusion, the current standard for treating lumbar spine issues, often leads to reduced mobility and other complications. 3Spine's MOTUS device aims to replace the function of the disc and facet joints through a posterior approach, addressing leg and back pain while preserving motion. This innovation meets a substantial clinical need for more effective and less invasive treatments.

Competition

Aspect: First mover
Summary: 3Spine is pioneering the first total joint replacement for the lumbar spine, positioning itself as a market leader.

The company's development of the MOTUS device as the first total joint replacement for the lumbar spine sets it apart from competitors. This first-mover advantage allows 3Spine to establish itself as a leader in this new market segment, potentially capturing significant market share before competitors can enter.

Technical Challenge

Aspect: Complex
Summary: Developing a total joint replacement for the lumbar spine involves significant technical complexities.

The lumbar spine's anatomy and biomechanics present unique challenges in designing a device that effectively replaces the disc and facet joints while preserving motion. Ensuring the MOTUS device meets these requirements necessitates extensive research, development, and testing, which can be time-consuming and resource-intensive.

Patent

Aspect: Very Strong
Summary: 3Spine holds a robust patent portfolio with 52 granted patents and 28 pending applications.

A strong patent portfolio is crucial in the medical device industry to protect innovations and maintain a competitive edge. 3Spine's 52 granted patents and 28 pending applications cover various aspects of their technology, providing comprehensive protection against potential competitors and enabling the company to capitalize on its innovations.

Financing

Aspect: Well-funded
Summary: 3Spine has raised a total of $58.5 million, including a $33 million Series C round in March 2022.

Developing and commercializing a medical device like the MOTUS requires substantial financial resources. Although 3Spine has raised $58.5 million to date, the costs associated with clinical trials, regulatory approvals, and market entry may necessitate further funding to ensure successful product launch and adoption.

Regulatory

Aspect: Pivotal Trial
Summary: 3Spine is conducting a Phase 2 clinical study of the BalancedBack Total Joint Replacement in the United States.

The regulatory pathway for medical devices involves multiple phases of clinical trials to demonstrate safety and efficacy. 3Spine's ongoing Phase 2 study is a critical step toward obtaining FDA approval. However, the process is lengthy and uncertain, with potential challenges that could delay or impede approval and market entry.

Opportunity Rollup

Odds of Success

3.95

Peak Market Share

5.25

Segment CAGR

3.0%

Market Segment

Orthopedic Devices

Market Sub Segment

Spinal Implants

Key Takeaway

3Spine's innovative MOTUS device addresses a significant clinical need in lumbar spine treatment, positioning the company as a first mover in this market. However, technical complexities, regulatory hurdles, and financial requirements present challenges that must be navigated to achieve successful commercialization.