Tuesday, July 17, 2012

Internal Fixation Systems, Inc. (IFIX) Well Positioned for Growth in Orthopedic Market

Internal Fixation Systems is a manufacturer and seller of high quality, reasonably priced orthopedic and podiatric implants. The company focuses on widely used, market proven products used to treat common fractures. The key selling point for IFIX is that its products are priced at 40-60 percent less than its competition’s products.

As with other segments of the healthcare industry, the medical device sector is undergoing vast changes thanks to healthcare reform. For example, as of 2010, Medicare now longer reimburses separately for medical device implants.

Costs, which has been rising about 10 percent annually, for medical devices are coming under heightened scrutiny from both insurance companies and government authorities. Reimbursements are decreasing while most medical device prices are increasing and therefore leading to changes. What was once almost solely a surgeon’s decision as to what medical device to implant, today surgeons have to work quite closely with administrators in order to provide patients the best care possible at the lowest possible cost.

Internal Fixation Systems is one of the first companies in the sector to recognize this paradigm shift and is trying to capitalize on it by offering lower-priced products that still offer the highest standards of quality. It does so by working closely with orthopedic surgeons to add features not found in competing products while keeping prices down through the use of flexible distribution pathways and responsible inventory management.

The changes in the healthcare system and IFIX’s strategy going forward bodes well for the future. After all, the US market for orthopedic implants is large and continues to grow. It is expected to reach $34 billion in sales by 2014. By undercutting those who employ a premium pricing strategy, Internal Fixation Systems stands to gain substantial market share from competitors.

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