HOLLAND, Mich., December 2017 – Shoulder Innovations, an emerging developer of shoulder replacement systems, today announced it closed a $1.6 million round of Series A equity funding. Demand for the company’s innovative shoulder replacement technology continues to grow, driving Shoulder Innovations’ sales revenues more than 380% during 2017.
The round was led by Ann Arbor-based Michigan Angel Fund, Grand Rapids-based Wakestream Ventures, Genesis Innovation Group, cultivate(MD) and other equity holders. The $1.6 million investment will be used to accelerate new product development, and acquire additional inventory and assets to fuel the growth of its current InSet™ Glenoid technology.
“The team at Shoulder Innovations has built an exciting company around truly innovative and disruptive products in the orthopedic space,” said Skip Simms, Managing Director Michigan Angel Fund. “They have done so in a capital-efficient way, which we love to see.”
An increasing prevalence of shoulder arthritis, including osteoarthritis, rheumatoid arthritis, and osteonecrosis, combined with the aging Baby Boomer generation is driving the growth of the global shoulder arthroplasty market. Today, more than 100,000 patients receive shoulder replacement surgery each year, with demand increasing ten percent annually. The global shoulder arthroplasty market was valued at more than $1 billion during 2016 and is expected to double by 2023.
“The market is influencing demand, and Shoulder Innovations is positioned advantageously with our simple surgical technique, more stable implant, and highly streamlined instrumentation process, which provides the opportunity for improved O.R. performance,” said Matt Ahearn, president, and COO of Shoulder Innovations. “We look forward to launching several new products during the first half of 2018, which will expand the value we bring to our customers.”
The Shoulder Innovations developed the Total Shoulder Replacement System leveraging a patented InSet™ glenoid technology, originally innovated by Stephen Gunther, M.D. The technology has been shown to reduce the “rocking horse” micro-motion of the glenoid by 87%. Since the system’s first commercial availability, it has been implanted in hundreds of patients and approved for use in dozens of hospital systems.
“Orthopedic surgeons are immediately interested as soon as we show them the Shoulder Innovations technology,” added Robert Ball, chairman of Genesis Innovation Group. “They really quickly understand the logical and elegant solution and tell us the system is so simple and straightforward they can get trained very quickly and start helping their patients.”
Results published in the Journal of Shoulder and Elbow Surgery show that near-term results of patients with severe glenoid bone loss, treated with the Shoulder Innovations technology, documented excellent radiographic and functional results at a 4.3-year follow-up. Separate studies showed a statistically significant increase in range of motion, reduction in pain, and high patient satisfaction, as a result of surgery.