Bonesupport’s entry into spinal market
On 5 March OssDsign peer Bonesupport announced that the FDA has granted the company’s product, Cerament BVF, approval for use with interbody cages. Bonesupport has reiterated that it will launch in spine in H2(25), but we think it could be earlier. This means a new spine competitor for OssDsign in the US. However, we believe Bonesupport’s spine launch will a have limited effect on OssDsign given the size of the market. In the US there are roughly 750,000 spinal fusion procedures performed annually, corresponding to a market size of ~USD1.8bn, according to Decision Resource Group. We do not believe that this will be a “winner takes all” market, but instead remain fragmented with several companies reaping success. Moreover, we argue that the two companies have slightly different focuses within spine: while OssDsign mainly targets current users of synthetic bone grafts, we believe Bonesupport’s edge within spine would be with the potential launch of Cerament G, bearing in mind the vast amount of off-label local antibiotics used in the US (~40% of the procedures in the US according to Bruder Consulting & Venture Group).
Estimates and valuation
We have not revised our estimates in this update, and our fair value range remains unchanged at SEK9–13 per share.
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