On January 29, ReWalk Robotics announced its rebranding to “Lifeward.” The rebrand has been, in many ways, about six months in the making.
In fact, Lifeward CEO Larry Jasinski began formulating this plan a few years ago. All I needed were a few key ingredients to move my physical rehabilitation and recovery company forward.
ReWalk's offerings include the ReWalk Personal Exoskeleton, ReStore Exo-Suit and MyoCycle FES systems. The exoskeleton is the company's robotic offering to enable mobility and wellness in rehabilitation and daily life for individuals with neurological conditions.
Jasinski said the company took an aggressive approach to financing during the early stages of the COVID-19 pandemic. In February 2020, it raised $7 million, followed by $9 million in July 2020. The company then added a whopping $40 million to its coffers in February 2021.
Another element was mergers and acquisitions. Jasinski has more plans for strategic purchases, but the company hit the big time when it acquired AlterG in August. AlterG provides anti-gravity systems for use in physical and neurological rehabilitation. The transaction adds existing and future product lines to ReWalk's existing neurorehabilitation product portfolio.
Finally, Lifeward was looking to recover costs, and with some final pieces still to be sorted, CMS finalized a rule benefiting its exoskeleton technology in November.
“I call it a multi-year trajectory,” Jasinski said. MassDevice In a recent interview. “But the actions that really enabled that were the money at the beginning of the coronavirus, and finally the CMS reacted and hired and was able to hire a team at a much higher level than before. Then came the first acquisitions, and I hope there will be more Along the way.
How the AlterG acquisition changed things
With financing available in the past few years, Lifeward paid $19 million to acquire AlterG. The transaction was concluded with a focus on expanding its customer-facing capabilities and enhancing future growth opportunities. With the acquisition announced in August, as of January 1, the field teams are fully integrated.
AlterG anti-gravity systems use patented differential air pressure technology derived from NASA. They reduce the effects of gravity, allowing people to move in new ways with precisely calibrated support and reduced pain. AlterG designed its technology to enable users to regain mobility, improve health and enhance physical performance.
Jasinski highlighted the popularity of the therapy in professional sports for injury rehabilitation. It is primarily for rehabilitation for people who need to compensate for some weight so that they can get better faster or perform tasks that they cannot do without the ability to compensate for that weight.
AlterG brings three products to the table with strong penetration across the clinics Lifeward is looking to work in, he said.
“It's particularly convenient because it's primarily done in the clinic,” Jasinski said. “For ReWalk, all of our users start in the clinic. … We'll start all of our ReWalk patients in that clinic. When we go into the clinic, we have AlterG in 2,500 centers in the United States, 600 spinal cord injury centers, so they already have those relationships and that presence Physical.
With a larger sales force now, Lifeward has more touch points, Jasinski said. With the addition of product lines, the company can offer multiple solutions for people who “want to go home.” Like a prosthetic, the ReWalk personal exoskeleton can be taken home and used at any frequency the patient prefers. It all starts in the clinic, and then AlterG somehow completes the process.
“We needed this circuit, this loop, to work,” he said. “We'll continue to fill more products into this structure. For an operational structure, it's a more efficient way to pay for the infrastructure you need to sell those products, service them, train them, and get compensated correctly.
CMS “Do or Die” coverage.
Changing the norm CMS leverages offerings like ReWalk Personal Exoskeleton technology that accelerate coverage and pay for newer technology and powered devices. This will likely allow faster access to the latest technology, such as those made by ReWalk, and Myomo as well.
In the rule, CMS says exoskeleton changes can speed up coverage and payment for newer technology and powered devices. In particular, it can help people with disabilities associated with muscular and/or neurological conditions. The rule finalizes a clear coverage path in which Medicare will reimburse on a lump sum basis.
“The CMS piece was life or death for the industry. It was that big,” Jasinski said. “If it hadn’t happened, we probably wouldn’t have done it.” [AlterG] The takeover will not go ahead.”
The company should know more in the next week or so regarding final pricing as well, but Jasinski expects only positives from here.
The coverage means more likely to get doctors to write prescriptions for Lifeward's technology, he says. It should help build business and create a big new market as well, he said.
“My problem wasn’t the number of patients knocking on the door,” Jasinski said. “I had nowhere to take them.”
Lifeward had already filed 20 claims at the end of last year and plans to continue as it approaches final pricing.
“[CMS coverage] “It couldn't have been a bigger event for the company,” he said. “We'll try to get the engine running more after April 1 when we have the final price. But, we can do what we set out to do. That's why it's so big.”
