No. of Employees: 5,000
Global Headquarters:Dallas, Texas
Matthew L. Trerotola, President, CEO, and Director, Colfax Corp.
Christopher M. Hix, Exec. VP, Finance and CFO, Colfax Corp.
Brady R. Shirley, CEO, DJO
Ben Berry, CFO, DJO
Jason Anderson, President, Bracing and Supports, DJO
Bryan S. McMillan, President, Regeneration, DJO
Terry Ross, President, Chattanooga, DJO
Late in 2018, diversified technology company Colfax Corporation began the $3 billion acquisition of DJO, which closed last February. As such, specific information for DJO’s revenue was not included in Colfax’s 2018 annual report. But with full integration into Colfax’s Medical Technology business, it has posted revenue that returned it to the list of orthopedic elites once again.
“We are excited to welcome DJO’s strong management team and talented associates to the Colfax family,” said Matt Trerotola, president and CEO of Colfax. “The DJO acquisition is the natural next step to make our company less cyclical and provide consistent, growing cash flows to execute our strategy for compounding value creation. They are a clear leader with a strong history and an attractive potential for future growth and margin improvement.”
By gaining DJO, Colfax added a broad range of products for orthopedic bracing, reconstructive implants, rehabilitation, pain management, and physical therapy to its new Medical Technology business. Its products address the continuum of patient care from injury prevention to rehabilitation after surgery, injury, or from degenerative disease, enabling people to regain or maintain natural motion.
DJO’s global headquarters was also relocated from San Diego to Dallas in late 2018. The company’s Bracing and Supports unit—which houses the DonJoy line of bracing solutions—and Consumer business unit remained in San Diego. Hundreds of new job opportunities were created in Dallas, including many at DJO’s distribution center in Fort Worth. Colfax retained the names of legacy DJO brands Aircast, Chattanooga, CMF, Compex, DonJoy, ProCare, DJO Surgical, Dr. Comfort, Exos, and MotionMD.
DJO (a.k.a., Colfax Medical Technology) accrued $1.08 billion in sales last year. Though 2018 figures aren’t available, Colfax’s annual report states that organic growth of 4.4 percent was achieved for the segment. Colfax expects the addition of DJO to produce higher margins, faster growth, and lower cyclicality, while providing opportunities for significant bolt-on and adjacent acquisitions over time.
The ADAPTABLE Surgical Arm was released at last March’s American Academy of Orthopaedic Surgeons (AAOS) annual meeting. The fully sterile, surgeon-controlled leg and retractor holder is designed for a safe direct anterior approach (DAA) in total hip arthroplasty (THA). The fully mechanical, carbon fiber surgical arm works with any standard operating table and can reduce the number of assistants in the OR. Weighing in at about 10 pounds, ADAPTABLE can be used for retractor placement or leg positioning for femoral exposure, range of movement, and leg length assessment.
“The specialty table model for DAA doesn’t align with today’s cost-conscious healthcare environment,” said Dr. Raymond Kim of the Steadman Clinic in Vail, Colo. “ADAPTABLE is a game-changing device for DAA THA. It empowers surgeons to reduce the number of staff intra-operatively and increase the overall OR economy. Its versatility as both a retractor and leg holder, as well as its promise for future indications, are a much needed innovative solution to patient care.”
At last March’s Spine Summit, DJO unveiled results of an independent study of its CMF SpinaLogic non-invasive electrical stimulation device that showed higher rates of healing after lumbar fusion surgery. The Oregon Health & Science University trial evaluated 46 patients undergoing the surgery. The trial showed a 49 percent increase in overall healing rate in the 27 patients receiving combined magnetic field (CMF) treatment with SpinaLogic over a placebo. No patients treated with the CMF device needed reoperation for pseudoarthrosis.
“There are a number of factors impacting a patient’s recovery from spinal fusion,” Dr. Khoi Than of Oregon Health & Science University said in prepared remarks. “We suspected post-op therapy could have meaningful impact, so we decided to look at two of the industry’s leading bone growth stimulators head-to-head. There’s more work to be done, but our initial data is very interesting.”
VeriPro real-time insurance verification software debuted last May. Offered under the MotionMD platform, it informs patients and practices of estimated cost of care at time of service. MotionMD’s web-based point-of-care solution streamlines claims management and inventory dispensing. The VeriPro adds real-time insurance verification of individual plan benefits. Patients are given estimated patient responsibility specific to the product they were prescribed and the client’s contracted rate.
“Our practice has seen such an improvement in cash collections since VeriPro,” said Ed Lochrie, DME Coordinator, Boulder Centre for Orthopedics & Spine. “This technology makes our process concise and our patients are grateful to know exactly what remains on their deductible and what they have to pay. This has significantly decreased the number of calls we have had for billing questions.”
Following last April’s FDA clearance for anatomic, reverse, and partial shoulder arthroplasty, last July DJO launched the AltiVate Reverse Short Stem. According to the company, it is the first fully-convertible, inlay, short stem shoulder arthroplasty system available in the U.S. The AltiVate Reverse Short stem is an “inlay” stem, meaning it sits entirely within the humerus. It’s designed for easy conversion from anatomic to reverse without overstuffing the joint and a 135o neck-shaft angle facilitates more anatomic humeral reconstruction. The short stem is also more bone-sparing than a standard length stem.
“The new AltiVate Reverse Short Stem is a major innovation,” said Dr. Gerald Williams of The Rothman Institute in Philadelphia. “I now have one system with a variety of options to treat most, if not all, of my patients. This stem is going to revolutionize the way orthopedic surgeons think about convertibility from anatomic to reverse shoulder arthroplasty, and it’s very exciting to be one of the first to use it clinically.”