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ChoiceSpine co-founders and owners Rick Henson and Marty Altshuler

In 2006, business partners Marty Altshuler and Rick Henson had a few challenges before them. Separately, they had each left lucrative positions with national and international medical supply companies. They had just spent most of the business startup capital they had saved on a couple of medical product ventures, including buying the assets of Orthotec, a Los Angeles company, and buying the U.S. marketing rights to a European medical device company with a U.S. partner that had nearly $40M in U.S. sales two years prior. The worst part was that they couldn’t market their products effectively because the prior owner was tied up in court – international court – over intellectual property and copyright transfer issues. Thus began ChoiceSpine L.P. It was an inauspicious start, one they hadn’t envisioned.

Today, however, is very different. In just over two years, ChoiceSpine has become a successful and respected Knoxville-based medical device company. Marty Altshuler, co-founder, said of their growth, “We’ve been quietly building this company the last two years, and now we’re really looking forward to putting East Tennessee on the map. ChoiceSpine is an emerging growth company poised for success in the fastest-growing segment of the medical device industry.”

And just what is that fastest-growing segment? The manufacture, marketing, and distribution of spinal implant systems for orthopedics and neurosurgery. In 2006, the market for these medical devices was $3 billion, and it is estimated that the industry is growing at approximately 20% per year. According to one researcher, global revenues for spinal implant and related products will reach a staggering $20 billion by 2015.

The spinal implant industry has grown, in part, due to the 50 million (and growing) people in the United States that have back pain. And globally, according to the National Institute of Arthritis and Musculoskeletal and Skin Diseases in the United States, up to 8 out of 10 people in the world will experience back pain at some point in their lives.

The causes are many. We’re living longer. As we age, spinal stenosis or herniated discs can trap nerve roots as they exit the spinal column. Spondylolisthesis or degenerative disorders affecting the facet joints may cause the spine to become unstable. Spinal implant systems like those of ChoiceSpine use titanium clips, rods, screws and plates to help stabilize the spine, usually resulting in pain relief and a return to normal activities for the patient.

In recent years, medical device companies have worked with orthopedic surgeons and neurosurgeons and mechanical and biomedical engineers to achieve dramatic improvements to these spinal implant systems, so that the implants behave more naturally, allowing for a larger range of motion. ChoiceSpine has done the same but with a slight advantage: they have a state-of-the-art manufacturing facility partner in Knoxville. Here, using data gathered directly from surgeons in the field, they can experiment with new designs before full-scale production.

“The amount of time and resources spent on putting this company back to where it was prior to our purchase has been a monumental endeavor,” explained Altshuler. “We basically had to start from scratch in design, engineering, and regulatory submissions. Many times we wanted to throw in the towel, but we decided in the end that our efforts would be worthwhile. We’re finally seeing sunshine, and every day is more exciting than the last in this ever-changing and growing industry”

Rick Henson, co-founder, said, “We are in the business of helping the orthopedic surgeon or neurosurgeon provide the very best care for his patient. We listen to surgeons and improve our products based on their feedback. Our engineering and our local manufacturing relationship give us a competitive advantage. We can take a design from a napkin sketch over dinner, show it to our engineering and manufacturing staff, and have a prototype made in less than 48 hours. Most larger companies cannot react that quickly.”

ChoiceSpine has six product lines that it sells through a growing North America distribution network: SCS Claris™ (Connector-Post) Pedicle Screw System, SCS Spinal Clip Poly-Axial System, Zenith™ (Oria) Anterior Cervical Plating System, SCS Xena™ Top-Loading Pedicle Screw System , Anterior SCS, and Natura™ (Oria) Peek Interbody Spacer System. The company holds a total of 12 patents for products treating 6 specific spinal conditions, including cervical, thoracolumbar, degenerative, scoliosis, lumbar deformities (AnteriorSystem), and spinal fusion (VBR).

“This company is a passion for us,” said Altshuler. “When we set out, we knew we wanted to be on the leading edge of technology for this industry. With our current mix of products, we’ve achieved our goal. We can address almost 80% of what the normal spine surgeon uses in an everyday spine procedure. Our goal over the next 3-5 years will be to offer an additional portfolio of products to take us as close to 100% as possible.”

Henson agreed, “ChoiceSpine has evolved in a very short period of time to become a national player in this market. We expect that to continue. Our goal is to involve regional and local surgeon knowledge and talent and use the expertise we have around us to springboard this company into a national and international spotlight.”



June 2008

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