Our Business Model
Össur develops, manufactures, and brings to market a wide range of prosthetics and bracing & supports solutions with high standards of quality. Every year, Össur makes a significant investment in research and development to further advance products and technologies for the benefit of all stakeholders. These high-end products are developed with the objective to improve people’s mobility. The products are delivered to users of our products and solutions through healthcare providers who specialize in assisting individuals who suffer from impaired mobility. Össur’s main sales channels for both Prosthetics and Bracing & Supports are O&P clinics which provide end-users with solutions and subsequently claim reimbursement from private or public insurance as Össur’s products and services are in most cases reimbursed. Össur has also expanded in the value chain and selectively acquired O&P clinics which Össur operates.
The end-users we serve include people with lower and upper limb loss due to, for example, vascular diseases including diabetes as well as cancer, trauma and congenital defects. They also include individuals who require support as they may have, for example, developed osteoarthritis in knee or hip ligaments, or require enhanced healing post-surgery or due to injuries.
By collaborating closely with O&P professionals and the users of our products, Össur gains a better understanding of their needs and challenges. In turn, Össur improves their mobility by providing new technologically advanced products and service solutions.
New major lower limb amputees per year
New upper limb amputees per year
of new amputees are fitted
with prosthetic solutions
is the average age
of the amputee population
Source: Össur Management estimates
Össur develops Prosthetics and Bracing & Supports, from an idea to a finished product. With every product, the aim is to deliver cost effective medical solutions that provide value for end-users and the healthcare system.
Research and Development
To obtain independent clinical evidence for product outcomes as well as health economic data, Össur initiates and promotes clinical studies in cooperation with leading scientists, institutions, and healthcare professionals in the field.
As part of our ambition to be at the forefront of innovation and new technology, Össur R&D participates in externally funded projects, collaborating with partners from industry and academia alike. We take part in various projects where world class scientists are involved in cutting edge research. This enables us to join forces in shaping the technology of the future with the mission of improving people's mobility.
Manufacturing and Quality
Össur maintains a strong global manufacturing function. At Össur, there is a continuous strive for efficiency, which includes finding ways to optimize the manufacturing process. Most of our products are manufactured in Iceland, Mexico and China. Manufacturing of advanced prosthetic solutions, including bionics, takes place in Iceland and Scotland. Manufacturing of most other prosthetics solutions, components and premium bracing solutions takes place in Mexico. Finally, Össur outsources the manufacturing of soft goods to China. In addition, Össur has smaller specialized manufacturing facilities in four locations in the US and one in France.
Great emphasis is placed on quality, and it is an intrinsic part of our processes. Össur has had a certified Quality Management system in place since 1993 which is based on ISO management standards and complies with the applicable medical device regulations in the countries that Össur operates in. Össur is certified to the global ISO 13485:2016 Medical Device Standard and the Medical Device Single Audit Program (MDSAP).
For the past years, multiple changes emphasizing safety have been implemented to the global regulatory framework for medical devices. We have successfully transformed our quality management system to ensure compliance with those changes emphasizing patient safety. Our extensive globally aligned quality management system is regularly audited by Össur’s notified body BSI.
Sales and Marketing
Össur operates within a highly specialized industry where the primary customers are specialized healthcare providers who provide and fit individuals with Össur products and solutions. In Prosthetics, these customers are O&P clinics and in Bracing & Supports, it is a combination of O&P clinics, hospitals, and surgery centers. In a few selected markets in Americas and EMEA, Össur operates its own O&P clinics.
Össur has operations in 36 countries and largely sells its products through its own direct sales network.
Prescribers, Providers and Payers
Prescribers include healthcare professionals who prescribe products and services based on the clinical indication of the end-users. These include orthopaedic surgeons, non-surgical physicians, rehabilitation and emergency physicians as well as other professionals providing medical diagnosis.
Össur’s customers are mostly the providers of products and service solutions to end-users. Providers are healthcare professionals who provide end-users with prosthetic and bracing & supports products, and related services. These include certified prosthetists and orthotists (CPOs) working at O&P clinics, durable medical equipment (DME) clinics, orthopaedic clinics, and hospitals. Many providers not only recommend specific products but also fit and tailor-make certain products. For non-reimbursed products, a provider can be a pharmacy or a sports store.
Payers include healthcare systems, insurance companies and individuals. In most cases, when an individual has been fitted with a product, Össur’s customers claim reimbursement from the relevant public institutions or private insurance companies. Around 90% of Össur’s product sales and services are estimated to be reimbursed by a third party. However, reimbursement systems vary substantially between countries. In other cases, the end-user of the products pays out-of-pocket for the solution provided. Overall, Össur’s sales in the Western world are mostly reimbursed while sales in emerging markets are mostly paid out-of-pocket.