Brady R. Shirley, President, CEO, and Director
Mike Eklund, CFO and COO
Toby Bost, President, DJO Global Consumer Business
W. Mark Dorris, President, Bracing & Supports
Jeffery A. McCaulley, Global President, DJO Surgical
Steven Ingel, Exec. VP, Healthcare Solutions
Raj Subramonian, Sr. VP and General Manager for FootCare Solutions
NO. OF EMPLOYEES: 4,420
GLOBAL HEADQUARTERS: Vista, Calif.
At 23 years old, Lindsay Avner was the youngest woman in the U.S. at the time to undergo a risk-reducing double mastectomy.
She had lost both her grandmother and great-grandmother to breast cancer before she was born. Further, she watched her mother fight both breast and ovarian cancer when she was only 12. Sensing a pattern, Lindsay underwent genetic testing at 22.
The test results indicated a mutation on her BRCA1 gene, which put her lifetime risks of breast and ovarian cancer at 87 percent and 54 percent, respectively. She immediately set out to take proactive measures against these diseases—ovarian cancer is widely considered the deadliest gynecological disease with a nearly two-thirds mortality rate. Unfortunately, she experienced a startling lack of resources for women in her situation, those who didn’t have either cancer but hoped to take a proactive approach to their health.
To combat this and equip women like herself with the necessary tools, Lindsay in 2007 initiated Bright Pink, an organization that inspires women to practice prevention through innovative programs, strategic initiatives, and powerful partnerships. The organization aims to foster a supportive healthcare relationship through education for both patients and healthcare providers. The result of the two-pronged approach to breast and ovarian health education, ideally, is one where informed women have proactive conversations with trusted providers on a regular basis.
Last October, Exos—part of the DJO Global family of brands—partnered with Bright Pink to help advance the foundation’s mission. The Exos line features a portfolio of adjustable, reformable braces for upper extremity, lower extremity, and spine to treat fractures and other injuries requiring stabilization.
“Many people have been impacted by breast cancer or ovarian cancer, either personally or by seeing loved ones confront the disease,” said Kevin Brothen, vice president of marketing, bracing and supports for DJO Global. “Our company champions a proactive approach to health and wellness, and this campaign aligns with that philosophy. By increasing awareness about issues such as prevention and early detection, we can all help make a difference.”
Exos braces are usually available in basic black, but users can choose to configure their own aesthetic options. Reflecting the spirit of the women’s health movement, Exos manufactured a number of pink upper extremity braces for the campaign. DJO Global also agreed to donate the proceeds of all Exos upper extremity “PINK” products sold last October to Bright Pink.
DJO’s Exos braces, along with the DonJoy, ProCare, Aircast, Dr. Comfort, and Bell-Horn brands, make up the company’s Bracing and Vascular business, which offers rigid knee bracing products, orthopedic soft goods, cold therapy products, vascular systems, therapeutic footwear for the diabetes care market, and compression therapy products. Generating 43 percent of DJO’s fiscal 2017 (ended Dec. 31) sales of $1.2 billion—a 2.3 percent rise from the prior year—this business has historically been DJO’s largest moneymaker. Not difficult to imagine, considering the firm’s DonJoy Performance knee braces are a favorite among professional athletes.
However, the segment accrued $507 million in 2017, dropping about 3 percent from 2016’s total. Reduced sales of the DonJoy deep vein thrombosis, Aircast, and Procare products were partly to blame for this slight fall. Also a relatively significant factor in the loss was market pressure in the therapeutic shoe market, which instigated a consequent drop in sales of Dr. Comfort therapeutic footwear products.
The DonJoy brand was the sole member of this segment to introduce new products last year. DonJoy was first introduced in 1992, and according to DJO, has produced over 1 million braces since the brand’s inception. DonJoy braces are widely used in professional sports—according to a 2016 Associated Press “Top 25” poll, 22 of the 25 AP Top 25 college football teams use the DonJoy Defiance knee brace. The business offers bracing for osteoarthritis (OA), ACL injury treatment and prevention, and ankle injuries, among others.
Last March, DJO launched the OA Reaction TriFit knee brace from DonJoy. Designed for pain relief for moderate to severe knee OA caused by overuse, obesity, or aging, three unique technologies combine for a custom fit so OA sufferers can return to an active lifestyle. The Web Tech shock absorber aids in full knee extension and patellofemoral tracking. Exos Tech, a heat thermoformable custom fit, hugs perfectly around the knee. And Boa Tech is a micro tension adjustment system to pull everything together and facilitate three-dimensional protection.
“With more than 40 percent of knee replacements occurring in patients over the age of 65 and the average onset of knee OA occurring at the age of 55, there is an inherent need for non-invasive, non-addictive methods to control pain and to support maintaining an active lifestyle,” commented Steve Ingel, DJO’s then president of Bracing & Supports.
The UltraSling Quadrant shoulder orthosis hit the market last November. To promote therapeutic movement for post-operative or post-traumatic shoulder injuries, UltraSling Quadrant immobilizes the shoulder within four angles—internal rotation, external rotation, adduction, and abduction—to support secure and functional recovery. The precision-based system also lets patients flex and extend their arm to promote recovery. It is made of a cool-to-the-touch antimicrobial to reduce the threat of infection and maintain comfort during extended wear.
DJO’s Surgical Implant business—which makes a comprehensive suite of reconstructive joint products for the hip, knee, and shoulder—was by far its strongest performer last year. With $200 million in proceeds, the segment ballooned nearly 15 percent from the previous year thanks to organic growth in shoulder, hip, and knee implants as a result of new product introductions and new accounts.
Last March saw the AltiVate Anatomic Shoulder System’s launch. The system touts a short, bone-sparing humeral stem anatomically designed through morphologically-based fit analysis to optimize metaphyseal fit and stability. The stem is coated with a proprietary porous material to stimulate osseointegration, with a glenoid component containing technology that encompasses trilobe features on the peripheral pegs for immediate fixation upon implantation.
“The AltiVate Anatomic system allows the surgeon to use a short or standard length humeral stem with the same instrument system and introduces a new glenoid component with outstanding initial fixation. The glenoid instrumentation is low profile and user friendly,” stated Dr. Gerald Williams of the Rothman Institute and a designer of the system. “In summary, this system provides the humeral length you want; the glenoid fixation you need.”
Just two days after AltiVate Anatomic’s launch, the Exprt Revision Hip attained FDA clearance. The Exprt portfolio is all about reduction—according to DJO, the Revision Hip has a price point 40-70 percent less than comparable hip revision systems. The two-tray revision system also reduces instrumentation by 80-90 percent as compared to others. Streamlined instrumentation further reduces money and time spent on sterilization, cuts overall time in the operating room, and requires less storage space. For this reason, the system is viable for both hospital and ambulatory surgical center settings.
Last March, DJO shuffled one of its C-suite spots. Former CoorsTek Medical president Bryan MacMillan was appointed president of the Regeneration business, making him responsible for the company’s commercial growth strategies, corporate payor development, and reimbursement activities.
Two months later, DJO welcomed Jeffery McCaulley as global president of DJO Surgical. With over 25 years spent working in the healthcare industry, McCaulley was most recently president and CEO of Smiths Medical, a $1.2 billion global medical device manufacturer. Prior to that, he was president of Zimmer’s global reconstructive division, president and CEO of Wolters Kluwer’s health division, and vice president and general manager of Medtronic’s global diabetes business unit.
“Our Surgical business’ best in market performance has and will continue to be the key transformation catalyst in our company,” DJO CEO Brady Shirley said upon McCaulley’s appointment. “I am excited to combine Jeff’s talent and experience in the space with our leadership team. Throughout his career, Jeff has a proven track record of accelerating innovation, improving employee and customer engagement, and delivering results. I look forward to this great next chapter for DJO Surgical.”
The Recovery Sciences business consists of the CMF (Combined Magnetic Field) and Chattanooga product lines. The CMF brand of bone growth stimulation products allows clinicians to assist in healing problem fractures and spinal fusion procedures. The Chattanooga line features clinical electrotherapy and traction devices, treatment tables, continuous passive motion (CPM) devices, and dry heat therapy products to treat musculoskeletal, neurological and soft tissue disorders. The segment was flat in 2017 with $158 million in sales.
Last June, a clinical trial began for a new indication for the CMF OL1000 Bone Growth Stimulator. Through the trial, DJO seeks to expand its CMF technology into the fresh fracture market. The prospective, randomized, double-blinded, controlled, multi-center clinical study is evaluating CMF OL1000 as a noninvasive adjunctive treatment for closed, unstable ankle fractures that require surgical treatment for stabilization.
Rather than parse each segment into domestic and international proceeds, DJO lumps all non-U.S. sales into an “International” segment. Net sales in the International business rose 6.3 percent to reach $320 million, comprising 27 percent of the company’s total revenue. Provoking this growth was strong performance in the German, French, and Australian markets as well as continued growth in the company’s export markets.