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Innovative Product Shelved in US
Due to Unacceptable Regulatory
Hurdles
One Example and Lessons Learned
February 10, 2014
Jane Metcalf
(949) 525 - 1493
Innovative Treatment for Chronic Lower Back
Pain Due to Degenerative Disc Disease (DDD)
30 million US citizens afflicted with lower
back pain and @ 3 million suffer from
debilitating chronic back pain.
Present Therapeutic Options
Present Therapeutic Options
Potential Area of Treatment
by Innovative Device
Innovative Treatment for Chronic Lower
Back Pain - Benefits and Risks
Benefits
• Relieves Pain
• Less invasive than
fusion surgery
• Lower cost
• Faster return to normal
activities
• Potential to delay further
degeneration
• Reversible
Risks
• Long term results not
studied
• Same as minimally
invasive facet screws
Obstacle in Pathway to US Market: FDA
Designated “Gold Standard” Control
IDE for Pivotal Trial (2 years in FDA negotiation)
• Multicenter, prospective, randomized control, 250+
patients, followed for 24 months
Control versus Test Arms of Study
• Control: Fusion surgery with interbody cage, several
days in hospital, general anesthesia, six week
recovery, cost @ $28K
• Test: Percutaneous out-patient surgery, local
anesthesia, 3 day recovery, cost @ $3K
Issues
• Patient enrollment rate much slower than
expected – increasing project study duration by
2 years
• Costs much higher (@ $15 million) than
expected
• Population for new device indication not
addressed
Lessons Learned
• Early understanding of FDA requirements for
determining safety and efficacy is key in
managing investor expectations

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Innovative Product Shelved in US Due to Unacceptable Regulatory Hurdles

  • 1. Innovative Product Shelved in US Due to Unacceptable Regulatory Hurdles One Example and Lessons Learned February 10, 2014 Jane Metcalf (949) 525 - 1493
  • 2. Innovative Treatment for Chronic Lower Back Pain Due to Degenerative Disc Disease (DDD) 30 million US citizens afflicted with lower back pain and @ 3 million suffer from debilitating chronic back pain.
  • 4. Present Therapeutic Options Potential Area of Treatment by Innovative Device
  • 5. Innovative Treatment for Chronic Lower Back Pain - Benefits and Risks Benefits • Relieves Pain • Less invasive than fusion surgery • Lower cost • Faster return to normal activities • Potential to delay further degeneration • Reversible Risks • Long term results not studied • Same as minimally invasive facet screws
  • 6. Obstacle in Pathway to US Market: FDA Designated “Gold Standard” Control IDE for Pivotal Trial (2 years in FDA negotiation) • Multicenter, prospective, randomized control, 250+ patients, followed for 24 months Control versus Test Arms of Study • Control: Fusion surgery with interbody cage, several days in hospital, general anesthesia, six week recovery, cost @ $28K • Test: Percutaneous out-patient surgery, local anesthesia, 3 day recovery, cost @ $3K
  • 7. Issues • Patient enrollment rate much slower than expected – increasing project study duration by 2 years • Costs much higher (@ $15 million) than expected • Population for new device indication not addressed
  • 8. Lessons Learned • Early understanding of FDA requirements for determining safety and efficacy is key in managing investor expectations