IBJNews

BioCrossroads rolls out orthopedic initiative

Back to TopCommentsE-mailPrintBookmark and Share

With job growth surging in Warsaw’s orthopedic cluster, the life sciences development group BioCrossroads Inc. set out to find a way to keep the party going.

It also wants to make sure new technological breakthroughs and federal efforts to pinch health care spending don’t shut down the party entirely.

BioCrossroads’ prescription? Spawn a copy of BioCrossroads for the north-central Indiana region, dubbed OrthoWorx, to promote the industry and the things it needs to keep growing.

The recommendation is detailed in a new report documenting the strengths and challenges facing Zimmer Inc., DePuy Orthopaedics Inc., Biomet Inc. and the other orthopedics companies in Warsaw. BioCrossroads also supports a beefed-up research initiative, called IN-OrthoNet, that would strengthen ties between Indiana universities, orthopedic surgeons and the Warsaw companies to help launch the next wave of innovations to the joint-replacement implants made in Warsaw.

“The Warsaw-based orthopedics sector represents a significant force globally—one that both needs and merits support to realize expanding opportunities and address the many challenges facing the region and the industry as a whole,” reads an executive summary of the report, which is being released today.

The concentration of orthopedics revenue in Warsaw is impressive. The worldwide industry had revenue of $32.5 billion in 2007, BioCrossroads determined, and $10 billion of that flowed to companies headquartered in Warsaw. The second-largest cluster, around Kalamazoo, Mich.,, pulled in half as much revenue.

Medical-device firms and the companies that serve them employ more than 6,000 people in Kosciusko County, of which Warsaw is the capital. From 2001 to 2007, employment growth in the medical device sector surged 39 percent.

But the Warsaw cluster faces two major challenges. First, health care reform and increased federal regulations could squeeze the profits of orthopedic implant makers. And that puts pressure on them to outsource operations to lower-cost regions.

David Johnson, CEO of BioCrossroads, wants to create as many local “roots” as possible in Indiana so it’s easier for the companies to grow in Warsaw and harder for them to grow anywhere else. Some of those things could include a sterilization facility (most companies now use one in Dayton, Ohio), an orthopedic surgeon-training facility to help roll out new products, and independent testing facilities.

The second challenge comes from cell-regeneration technologies and the self-healing potential of stem cells, which could one day render artificial hip and knee replacements unnecessary. The Warsaw companies are working to make those breakthroughs, rather than be broken by them.

To make sure they’re the innovators, the Warsaw companies need to attract the most talented people they can. But the community of Warsaw, with only 12,500 people, cannot possibly offer all the amenities that many highly skilled workers will expect. To address this workforce challenge, BioCrossroads suggests the new OrthoWorx organization work to promote cultural and educational institutions—not only in Warsaw, but also in nearby Fort Wayne and South Bend.

“The medical innovation coming out of Warsaw is some of the best in the world, so it’s critical that we have a plan for sustainability and growth,” said Cheryl R. Blanchard, chief scientific officer at Zimmer. “With true and widespread business and community participation, BioCrossroads has created a roadmap to move us forward.”

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. By Mr. Lee's own admission, he basically ran pro-bono ads on the billboard. Paying advertisers didn't want ads on a controversial, ugly billboard that turned off customers. At least one of Mr. Lee's free advertisers dropped out early because they found that Mr. Lee's advertising was having negative impact. So Mr. Lee is disingenous to say the city now owes him for lost revenue. Mr. Lee quickly realized his monstrosity had a dim future and is trying to get the city to bail him out. And that's why the billboard came down so quickly.

  2. Merchants Square is back. The small strip center to the south of 116th is 100% leased, McAlister’s is doing well in the outlot building. The former O’Charleys is leased but is going through permitting with the State and the town of Carmel. Mac Grill is closing all of their Indy locations (not just Merchants) and this will allow for a new restaurant concept to backfill both of their locations. As for the north side of 116th a new dinner movie theater and brewery is under construction to fill most of the vacancy left by Hobby Lobby and Old Navy.

  3. Yes it does have an ethics commission which enforce the law which prohibits 12 specific items. google it

  4. Thanks for reading and replying. If you want to see the differentiation for research, speaking and consulting, check out the spreadsheet I linked to at the bottom of the post; it is broken out exactly that way. I can only include so much detail in a blog post before it becomes something other than a blog post.

  5. 1. There is no allegation of corruption, Marty, to imply otherwise if false. 2. Is the "State Rule" a law? I suspect not. 3. Is Mr. Woodruff obligated via an employment agreement (contractual obligation) to not work with the engineering firm? 4. In many states a right to earn a living will trump non-competes and other contractual obligations, does Mr. Woodruff's personal right to earn a living trump any contractual obligations that might or might not be out there. 5. Lawyers in state government routinely go work for law firms they were formally working with in their regulatory actions. You can see a steady stream to firms like B&D from state government. It would be interesting for IBJ to do a review of current lawyers and find out how their past decisions affected the law firms clients. Since there is a buffer between regulated company and the regulator working for a law firm technically is not in violation of ethics but you have to wonder if decisions were made in favor of certain firms and quid pro quo jobs resulted. Start with the DOI in this review. Very interesting.

ADVERTISEMENT