DJO Global Company Profile

Background

Overview

DJO Global, now operating as Enovis, is a leading American medical device company specializing in orthopedic products for rehabilitation, pain management, and physical therapy. Founded in 1978 in Carlsbad, California, by Mark Nordquist and Ken Reed, the company has grown into a significant player in the medical device industry. DJO's mission is to help people maintain and regain the joy of natural mobility, offering a comprehensive range of products that address the continuum of care from injury prevention to post-operative rehabilitation.

Industry Significance

As one of the largest non-surgical orthopedic rehabilitation device companies in the United States and globally, DJO holds leading market positions in various product categories. The company's strong brand names, extensive product range, focus on quality and innovation, and robust relationships with healthcare professionals have contributed to its prominent standing in the industry.

Key Strategic Focus

Core Objectives

DJO's strategic focus centers on delivering high-quality orthopedic devices that cater to the entire spectrum of patient care, from preventive measures to post-operative rehabilitation. The company aims to enhance patient outcomes through innovative product development and strategic acquisitions that expand its product portfolio and market reach.

Areas of Specialization

DJO specializes in several key areas:

• Bracing and Supports: Offering rigid knee bracing products, orthopedic soft goods, and cold therapy products under brands like DonJoy, ProCare, and Aircast.

• Recovery Sciences: Providing electrotherapy products for pain therapy and rehabilitation, as well as physical therapy devices.

• Surgical Implants: Developing and distributing reconstructive joint products for the hip, knee, and shoulder.

• Vascular Health: Manufacturing compression therapy products and vascular systems to prevent deep vein thrombosis and other venous disorders.

Key Technologies Utilized

DJO employs advanced technologies across its product lines, including:

• Thermoformable Bracing Systems: The Exos bracing system, which is adjustable, waterproof, and can be formed around a patient's limb using a proprietary tensioning system.

• Neuromuscular Electrical Stimulation Devices: Products like Compex, used by athletes and trainers for muscle stimulation and recovery.

Primary Markets Targeted

DJO's products are utilized by a diverse range of healthcare professionals, including orthopedic specialists, spine surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, and athletic trainers. The company serves both domestic and international markets, with a significant presence in the United States, Europe, and Asia.

Financials and Funding

Funding History

DJO has undergone several significant financial events:

• 2007: Acquired by The Blackstone Group for $1.6 billion, leading to the formation of DJO Global.

• 2011: Acquired Elastic Therapy, Inc., a manufacturer of compression therapy products, to strengthen its vascular health portfolio.

• 2019: Acquired by Colfax Corporation for $3.15 billion, marking Colfax's entry into the medical device sector.

Revenue

As of 2017, DJO reported revenues of approximately $1.19 billion. In 2011, the company generated nearly $1.1 billion in sales, reflecting an 11% increase from the previous year.

Pipeline Development

Key Pipeline Candidates

DJO has been active in developing and launching new products:

• Exos Bracing System: A thermoformable, adjustable, and waterproof bracing system introduced in 2012, designed for treating fractures and other injuries requiring stabilization.

• AltiVate Anatomic CS Edge: Launched in September 2020, this stemless shoulder implant features serrated fin tips and a proprietary titanium porous coating to enhance bone ingrowth.

Clinical Trials and Product Development

DJO is conducting a post-market study of its 3DKnee with E-Plus insert following total knee surgery. The observational study has enrolled 300 participants, with a primary completion date set for May 2027 and an estimated study completion date in May 2028.

Technological Platform and Innovation

Proprietary Technologies

DJO's commitment to innovation is evident in its proprietary technologies:

• Exos Bracing System: Utilizes a unique thermoformable material and tensioning system, allowing for a customized fit that accommodates swelling and atrophy.

• Compex Neuromuscular Electrical Stimulation: Employs advanced electrical stimulation technology to aid in muscle recovery and performance enhancement.

Significant Scientific Methods

DJO integrates various scientific methodologies into its product development:

• Electrotherapy: Utilized in products for pain management and muscle rehabilitation.

• Biomechanical Engineering: Applied in the design of orthopedic implants and bracing systems to ensure optimal performance and patient comfort.

Leadership Team

Key Executives

• Brady Shirley: Serves as the President of DJO Global.

• Matthew L. Trerotola: Associated with the company in a key leadership role.

Leadership Changes

In 2011, DJO appointed Michael Mogul as President and CEO. Mogul brought experience from his previous role at Stryker Corp., another orthopedic device manufacturer.

Competitor Profile

Market Insights and Dynamics

The orthopedic device market is highly competitive, with several key players offering a range of products for musculoskeletal health, rehabilitation, and pain management.

Competitor Analysis

DJO's primary competitors include:

• Zimmer Biomet: A global leader in musculoskeletal healthcare, offering a comprehensive portfolio of orthopedic products.

• Bioventus: Specializes in orthobiologic solutions for bone healing and osteoarthritis.

• Stryker: Provides a wide range of medical technologies, including orthopedic implants and surgical equipment.

In various comparative metrics, DJO ranks second to Zimmer Biomet in areas such as product quality, net promoter score, pricing, and customer service.

Strategic Collaborations and Partnerships

DJO has engaged in several strategic acquisitions to enhance its product offerings and market presence:

• Elastic Therapy, Inc. (2011): Acquired to expand DJO's vascular health product line with compression therapy products.

• Exos (2012): Acquired to introduce a thermoformable bracing system, marking a significant innovation in musculoskeletal stabilization.

• Mathys AG (2021): Acquired to strengthen DJO's reconstructive business and orthopedic presence outside the US.

Operational Insights

Manufacturing and Distribution

DJO operates multiple manufacturing and distribution facilities worldwide, including locations in the United States, Mexico, and Tunisia. The company employs a mix of manual, semi-automatic, and automatic processes, utilizing cell-based manufacturing and lean principles to efficiently produce a high variety of products tailored to customer needs.

Customer-Centric Approach

DJO's operations are highly customer-centric, capable of rapidly producing customized products, such as braces with specific logos and colors for professional sports teams. This agility allows the company to meet diverse customer demands effectively.

Strategic Opportunities and Future Directions

Expansion and Innovation

DJO continues to explore opportunities for growth through product innovation and strategic acquisitions. The company's focus on developing advanced orthopedic solutions positions it to meet the evolving needs of the healthcare market.

Global Market Penetration

With a strong presence in the United States and expanding operations in Europe and Asia, DJO aims to increase its global footprint, leveraging its comprehensive product portfolio and commitment to quality and innovation.