Cartilage damage arises from a combination of activity and the cumulative effects of aging. Damaged cartilage does not heal and eventually leads to osteoarthritis (OA), which is a leading cause of disability in adults, according to data from the Centers for Disease Control and Prevention. The net effect of damaged cartilage is that the affected joints experienced accelerated aging in terms of loss of function. One in four people in the United States, or more than 50 million people, report leisure- and work-related activity limitations due to joint pain caused by OA. OA is diagnosed in more than 90% of the 470,000 hip replacement surgeries done annually in the United States, at a direct cost of at least $25 billion. The current standard of care is hip replacement surgery, but there is a clear unmet need for an intervention that reverses the effects of aging and wear on arthritic joints.
CytexOrtho has developed patented technologies that are being used to create implants that integrate into the cartilage defect of an injured joint, restoring anatomic structure and function while preserving natural bone. The implants are made of polycaprolactone (PCL), a material with a well-established regulatory history of biocompatibility and safety, supported by data from PCL-based products currently on the market. Preclinical studies in a model of OA show that CytexOrtho implants restore damaged cartilage, enabling 100% of test animals to return to pain-free joint function. By contrast, the control group animals evidenced disease progression and never regained joint function.
Of the 470,000 hip replacement surgeries done annually in the United States, more than 90% are elective. Of these, 92% have OA as a primary diagnosis. About half of patients undergoing hip replacement surgery are 25 to 55 years of age. Joint replacement is not ideal, due to the limited lifespan of the implants. Unfortunately, surgeons lack an effective treatment that restores damaged cartilage, arrests disease progression, and delays joint replacement surgery. The hip replacement market is growing at 4% annually, but utilization among younger patients increased at a higher rate from 2013 to 2017: 14% for patients ages 35 to 44; 25% for patients ages 45 to 54; and 42% for patients ages 55 to 64 (BCBS Report, 2019). This reflects the need for multiple revision procedures in a patient’s lifetime, which reduces the effectiveness of the procedure and, accordingly, the quality of life as the population ages. This is alarming, because joint replacement surgery is clinically suboptimal for these patients. The lack of an alternative procedure that restores joint health and function is driving this excess utilization, an issue that CytexOrtho hopes to address with its implants.
Surgeons treating OA patients are limited to joint replacement, which is effective in older, less active patients. Cartilage restoration, though, remains elusive. Current restorative techniques (e.g., microfracture) are not effective in treating the cartilage defects that are the hallmark of OA and other conditions affecting older patients and, increasingly, younger patients. CytexOrtho believes that cartilage restoration may delay OA progression and postpone or eliminate the need for joint replacement until such time as is medically appropriate. As a result, the preservation of joint tissues earlier in life ensures a better quality of life as the patient ages. CytexOrtho is the leading innovator in cartilage restoration implants for the hip and is pursuing a first-to-market strategy for its products.
Company Milestones
Scientific
- 2015: Key national and international patents filed (see Intellectual Property section)
- 2018: Completed proof of concept study in large animal osteoarthritis model, demonstrating that the CytexOrtho implants relieve pain, repair deficits, and restore function in the treated joint
- 2019: Study results presented at Orthopaedic Research Society Annual Meeting
- 2020: Completed Good Laboratory Practice preclinical studies
Business
- 2020: Food and Drug Administration (FDA) Center for Devices and Radiological Health pre-submission meeting
- 2021: Investigational device exemption (IDE) filed
- 2021: First-in-human pilot study
Financial Overview
CytexOrtho has raised $18 million in grant funds to date.
CytexOrtho anticipates raising $10 million in the A round for clinical development, manufacturing development, first-in-human feasibility study, preclinical research and development, and operations.
Intellectual Property
CytexOrtho has been awarded U.S. patents, with foreign applications either awarded or in the National Phase. The key issued U.S. patent, expiring October 2036, covers an allowed claim enabling “cartilage repair and regeneration using an implant consisting of 3D woven layer and 3D printed substrate.” This patent covers all generations of CytexOrtho implants.
Product Development and Regulatory Strategy
CytexOrtho lead products rely on precise engineering and material biocompatibility to effectively restore damaged cartilage. These products are regulated by the FDA as Class 3 Medical Devices. The regulatory path is IDE submission to enable the pilot study, followed by a pivotal study, followed by submission of a premarket approval for review and approval, then to market. In targeting younger patients with early-stage OA, CytexOrtho products address a clear unmet clinical need representing a large commercial opportunity.
Commercialization Strategy
CytexOrtho is pursuing a first-to-market strategy for its hip restoration implants and has active dialogues with each of the major companies in this space. CytexOrtho believes that the most effective commercial path to market is forming a partnership with one of these companies in order to leverage the existing commercialization assets of the chosen partner. CytexOrtho is aware that such relationships are driven by clinical data and is focusing on generating such data in multiple clinical indications in order to facilitate a partnership or other transaction.
Company Details
Durham, NC
Industry: Devices
Management Team:
- Chief Executive Officer: David Pritchard
- President: Bradley Estes, Ph.D.
- Chair: Farshid Guilak, Ph.D.
- Vice President, Technology Development: Franklin Moutos, Ph.D.
Point of Contact:
David Pritchard
dpritchard@cytextherapeutics.com
(919) 400-2693
Showcase selected for: RESI San Francisco
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