Onkos Surgical Secures $17.6M Series B Funding to Address Implant Loosening in Orthopedic Oncology

VCBeat has learned that Onkos Surgical recently secured $17.6 million in Series B financing, led by Canaan Partners, with participation from 3D Systems, 1315 Capital, and others. Founded in 2015 and headquartered in Parsippany, New Jersey, Onkos Surgical specializes in orthopedic oncology, providing novel technologies and solutions to oncologists in an effort to penetrate the orthopedic medical device market dominated by industry giants such as Stryker and Biomet.

The company has been committed to addressing the issue of loosening at the interface between implants and the body. This round of financing will leverage new capital to expand its sales, marketing, and R&D platforms. The team is seeking regulatory approval and expects to enter the Western European and Australian markets in 2018.

Onkos focuses on orthopedic oncology within the field of orthopedics. This has become a neglected area, despite the sharp rise in demand for age-related orthopedic products and the introduction of innovative technologies such as robotics.

What key challenges does Onkos Surgical address? When tumors or hyperplastic tissues are removed from bone, highly customized implants are typically required to replace the missing segments. Historically, these technologies were derived from research in other areas of orthopedics; however, challenges such as infection, reattachment of soft tissues (e.g., tendons and ligaments) to the implant, and aseptic loosening—defined as implant loosening in the absence of infection—have persisted. In essence, Onkos has been dedicated to resolving the issue of loosening at the interface between the implant and the host body.

The company’s product portfolio includes the ELEOS™ Limb Salvage System, My3D™ technology, and GenVie. The ELEOS™ Limb Salvage System assists in surgical planning for patients requiring radical resection and replacement of the femur and tibia, accurately calculates the required implants, and verifies biomechanical stability, thereby reducing instability and implant dislocation. The system is user-friendly and offers design capabilities.

My3DTM technology helps the company develop personalized implants, medical devices, and anatomical model designs for different patients. High-quality image processors are used to perform CT scans, creating 3D computer models of hard and soft (tumor) tissues. Surgeons then collaborate with technical experts to design surgical plans based on these models, improving treatment outcomes for individual patients.

GenVie delivers focus and innovation to musculoskeletal oncology. It develops biologic products tailored for soft tissue and bone tumor applications. Patients facing complications such as wound closure challenges, bone regeneration needs, and nerve and soft tissue issues often require biologic adjuncts to enhance healing.

“In this field, industry giants Stryker and Biomet hold absolute dominance. Patrick Treacy, co-founder and CEO of Onkos, stated: ‘Onkos has not developed robotic technology; it focuses solely on the treatment of a single arm or leg.’”

Treacy stated, “We refer to the business we are building as a specialized medical technology model. By incorporating innovations into existing products and leveraging a robust sales model along with a suite of value-added services, Onkos has breathed new life into legacy equipment. This approach has enabled us to achieve high capital efficiency, driving rapid growth through product upgrades and modernization.”

To engage with orthopedic oncologists, Onkos has deployed a hybrid sales team and signed a distribution agreement with Vivex Biomedical, which can facilitate mutual growth. While introducing existing technology platforms, specialty pharmaceutical startups are also committed to innovation. Treacy stated that through communication, surgeons have conveyed three specific needs to the team.

Additionally, Onkos Surgical announced two new key partnerships: one with the Musculoskeletal Tumor Society (MSTS) and the other with PatientIQ, a healthcare data research and analytics technology company.

By sponsoring MSTS, Onkos Surgical has strengthened its engagement with key opinion leaders (KOLs), gaining deeper insights into current clinical challenges and obtaining feedback on technology application. In collaboration with PatientIQ, it has launched a clinical data collection platform for surgical oncology patients. Patients register on the platform, and their treatment outcome data are systematically collected. This platform will create a secure environment for surgeons and patients, facilitating clinical data management and helping to monitor treatment progress in this challenging patient population.

Although the depth of application for Onkos products has also advanced. For instance, the ELEOS Limb Salvage System, designed to replace bone loss by removing cancerous growths, is also used in hip repair, knee replacement, or post-traumatic reconstructive surgery for destructive injuries at fracture sites. Onkos’s short-term goal is to become a top-tier orthopedic oncology company. In the long term, Onkos aims to achieve greater progress and compete with industry giants.