Nano Interface Technology, LLC. (NITI) has developed nanotechnology-derived economical ultra-pure coatings for orthopedic and dental implants which FDA has been looking for many years. The NIH Nanotech review panel validates NITIís proprietary technology by stating ďExcellent quality of product and its enormous clinical benifits.Ē For the last 20 years, the lifespan of orthopedic and dental implants has been 10-12 years with revision rate of 17%. The ultra-pure coatings developed by the NITI have potential to increase the lifespan of these implants from 12 years to 20 years resulting in reduced revisions. It will also reduce the need of high strength painkillers. Since this material is currently used in coatings of implants, therefore implants developed using this purer material will easily get the FDA approval. It will be widely accepted by the surgeons because the cost of these implants will be significantly lower than the current cost of coated implants. The reliability of NITIís implants will be very high as compared to the existing implants in the market.
NITI will market the products after in vivo studies in the next 3 years. NITI will purchase components of hip and knee implants from the third party. After coating of implants, it will directly sell them to the hospitals for higher growth in the revenue. NITI plans to license its technology to the existing players in the dental implants business. The leading dental implants companies have shown great interest in partnering with NITI. The worldwide market size of the orthopedic and dental implants is $15B per year with 15% growth rate. The growth rate of 15% will increase to 25% due to the longer life expectancy and unavailability of several painkillers for arthritis, resulting in $30B market by 2009. NITI foresees revenue of $228M based on the market shares of 0.5% ($187M) in orthopedic and 7% ($41M) in dental implants market. The major part of the revenue will be generated from the sales of orthopedic implants. The minor part of revenue will be generated from licensing in dental implants market segment. The market share will grow rapidly due to the reduced pain and revision rate. The total number primary hip and knee implants per year in the US are roughly 500,000 and revisions per year are around 100,000. That gives revision rate of approximately 17% (100,000/600,000). Let us assume by extending the lifespan of the implants, the revision rate is reduced from 17% to 12%. That means 30,000 (5% of 600,000) fewer revisions per year which cost $30,000 per revision. Therefore, the reduction in the revision rate of hip and knee implants from 17% to 12% has the potential of saving $ 900M per year in the US alone.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements may constitute forward-looking statements. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors including, but not limited to: the development of NITIís coating technology, the successful implementation of NITIís product manufacturing programs; the acceptance of NITIís products by the market; competition and the timing of projects and trends in future operating performance. The forward-looking statements contained herein are made only as of the date of this release, and NITI undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.