LESS than three years ago a relatively young European medical firm set itself up in Perth to offer a new form of treatment for joint injuries, particularly those of the knee.
LESS than three years ago a relatively young European medical firm set itself up in Perth to offer a new form of treatment for joint injuries, particularly those of the knee.
Verigen Australia Pty Ltd, a subsidiary of the German biotech company Verigen, introduced to Australia the concept of Autologous Chondrocyte Implantation (ACI), a surgical practice first developed in Sweden in 1987.
ACI is used to treat joint lesions classified as Grades 3 or 4, where cartilage has worn away either partially or to the extent that a hole forms. The treatment for such injuries involves removing a few hundred thousand cartilage cells from the non-weight-bearing part of the knee and culturing these until there are about 20 million cells. These cells are then implanted under a porcine-derived collagen patch and left to grow to literally fill in the gap. The collagen patch eventually breaks down harmlessly within the body.
Verigen generally limits the treatment to people aged between 15 and 55 years who have suffered an acute knee injury. In particular, injured footballers, both amateur and professional, are beginning to use the surgery in increasing numbers. While ACI can help to prevent the onset of arthritis, it is not a cure for that ailment.
In the past two years Verigen’s process has been used to treat 140 patients with traumatic knee injuries, and according to the company’s national sales and marketing manager, Paul Anderson, Verigen expects a further 230 people to be treated this year, and more than 300 next year.
Until this year, only injured knees had been treated using ACI, but since January three patients have had their ankles treated and just three weeks ago Verigen’s process was used to treat a shoulder injury for the first time in Australia.
Mr Anderson said about 70,000 arthroscopies on knees, ankles and shoulders were performed in Australia each year, with about 10 per cent of these performed on people whose injuries ACI could treat. Most were knee injuries.
Mr Anderson described ACI as the first remedy for these types of lesions that could provide a definitive result. He said no other technique could offer the assurance that full healing of the injury would occur.
After the implantation occurs, patients are asked to not put any weight on the joint for six weeks, although keeping it mobile is an important part of the healing process. After a rehabilitation program over two or three months, patients are able to use the joint fully within six months and recommence serious sporting activity after 12 months.
On February 28 this year the company received approval for rebate funding from private health funds, meaning the full cost of the operation – about $20,000 including anaesthesia and post-operative physiotherapy – was covered by health funds. Verigen’s share of the cost is $8,500.
Such coverage was given only once Verigen began to culture the cells here in Australia. Previously, the company had had to send the 8-10mm long cartilage biopsies to Europe to be cultured.
Negotiations continue with Federal authorities for ACI to be covered by Medicare, and Mr Anderson expressed hope the request would be granted within the next year.
Verigen has contracted 30 surgeons at 15 different hospitals across Australia’s mainland States to use its technique, and Tasmanian surgeons are soon to join in. By next year, commensurate with the increase in the number of surgical procedures, Verigen expects the number of participating surgeons to double.
The company, which is currently headquartered at Hollywood Hospital in Nedlands, recently introduced ACI to China and is preparing for the first use of the process on a patient in Hong Kong.
A desire to enter the Asian market in a more substantial way was an important consideration for Verigen and was a major reason the company chose to set up in Perth rather than one of the eastern States.
Having spent $2 million on its Nedlands facility, Verigen is concerned with proving the bona fides of its technique. ACI is the company’s sole focus for business and research purposes, and when the procedure is more broadly understood and accepted, it is possible Verigen will seek stock market listings both in Australia and overseas in the next few years.
