Cheaper Prosthetic Hands: Innovations & Accessibility

Alt-Bionics: Pioneering Affordable Prosthetic Hands

Alt-Bionics garnered significant attention in late 2019 when the fledgling company participated in the University of Texas at San Antonio (UTSA) Tech Symposium. While finishing as runner-up to 3BM’s infrared paint-curing system, Alt-Bionics quickly gained national and international recognition due to its innovative technology and compelling narrative.

According to a report on the university’s website, the company’s prosthetic hand was available for approximately $700, representing a substantial reduction in cost compared to conventional systems. Much of the subsequent coverage has centered on the team’s journey from initial concept to a viable product, with CEO and co-founder Ryan Saavedra, a UTSA engineering alumnus, highlighting that similar devices typically range in price from $10,000 to $150,000. The company is currently aiming for a price point of around $3,500.

Company Updates and Future Outlook

The Alt-Bionics team has consistently shared updates on product development through social media channels. Prior to a detailed review, we connected with Saavedra to discuss the company’s progress over the past three years and its future direction. Additionally, Alt-Bionics provided exclusive, unreleased renderings, described as “not indicative of our final product,” but rather a celebratory illustration marking the completion of their patent application.

TechCrunch: What factors contribute to the high cost of prosthetics?

Manufacturing costs are not inherently expensive, nor should these devices be unaffordable for users. There isn’t a single explanation, but I will attempt to summarize the multiple reasons behind the high prices associated with bionic hands. We’ve identified two primary components influencing the final cost of prosthetic devices, with a third, secondary factor also playing a role.

The Cost Breakdown

The manufacturer is responsible for developing and producing these bionic devices, subsequently selling them to prosthetic and orthotic clinics – the primary point of sale and fitting. The most affordable bionic prosthetic hand available to P&O clinics starts around $10,000 and can reach hundreds of thousands of dollars. Interestingly, this cost doesn’t always correlate with the device’s functionality or performance. Manufacturers largely determine pricing, often citing overhead expenses as a limiting factor in reducing prices.

The prosthetic & orthotic clinic handles the medical insurance process. This involves submitting LCodes (insurance codes for bionic hands, provided by the manufacturer) to insurance companies for reimbursement. These LCodes have minimum and maximum reimbursement amounts that the prosthetist can choose. Reimbursement often exceeds the hand’s cost, covering the clinic’s and clinician’s time and effort in procurement, fitting, testing, assembly, and patient care. While a reasonable margin is typical, we’ve observed reimbursement amounts exceeding $124,000 for a $10,000 hand (based on a 2018 patient receipt).

Technological stagnation has persisted in the field of bionic hands for nearly 15 years, with only recent emergence of new competitors. Larger companies often operate across multiple areas of prosthetic devices, including transradial (below elbow) prosthetic devices. This broader focus can dilute attention and resources dedicated to the development and affordability of upper extremity prostheses. The lack of external pressure has allowed prices to remain stable, reinforcing the issues identified previously.

TechCrunch: What has been the response from the medical community?

The response has been overwhelmingly positive! Clinics, clinicians, patients, potential users, and even competing companies have shown strong support for our mission. While competition exists, all parties share a common goal: leveraging technological advancements to improve quality of life.

Initial skepticism regarding our lower price point ($3,500) is quickly addressed when we discuss our technologies and processes. We are currently exploring partnerships with prosthetic and orthotic clinics to create devices that benefit patients and simplify repair and maintenance for prosthetists.

Project Status and Timeline

TechCrunch: What is the current stage of the project, and what is the anticipated timeline for market launch?

The project is progressing well, currently approximately 42% complete. Key milestones include:

• Successful proof of concept with Army Ranger, Ryan Davis. December, 2019.
• Formation of Alt-Bionics. May 2020.
• $42,000 SolidWorks grant from D’Assault Systems. July, 2020.
• Provisional patent filing. June, 2021.
• $50,000 investment from the city of San Antonio’s SAMMI Fund. July 2021.

We anticipate launching our device within one year of closing our seed funding round. To date, we have raised $142,000 of our $200,000 goal and aim to finalize this round by September.

TechCrunch: What challenges have you encountered so far?

Navigating the FDA regulatory landscape and securing funding have presented the biggest hurdles. The FDA regulatory process is complex, and specialized companies exist to assist with navigating its intricacies. Alt-Bionics has recently been accepted into a biomedical accelerator program in San Antonio, providing access to regulatory experts. While our mission is commendable and our business plan is sound, COVID-19 has created investor uncertainty. The inability to present to live audiences has made fundraising more challenging.

TechCrunch: What is your current funding situation? How much capital have you raised, and are you seeking additional investment?

Alt-Bionics has raised $142,000 from various investors and received a $50,000 investment from the city of San Antonio’s SAMMI fund. We are seeking an additional $58,000 from accredited investors to complete our seed round. This will enable us to accelerate our timeline to market and prepare for a Series A funding round, allowing us to expand our engineering team, further develop the technology, and enter international markets.

TechCrunch: Will developing markets be a primary focus?

Developing countries will be a key market for Alt-Bionics, particularly through collaborations with NGOs, and will be central to our international expansion strategy. We believe there is a significant opportunity to provide our devices to these markets. Affordability is paramount to our mission of increasing access, and we are confident in our ability to succeed in this expansion.

Returning to our regular roundup…

Regarding Berkshire Grey’s announcement of a “$23+” million deal for grocery picking robots, Walmart immediately came to mind. Following a discussion about Walmart’s robotics initiatives during a recent panel, I heard indications of a significant new investment in this area.

While the Symbotic deal doesn’t preclude a potential partnership between BG and Walmart, it’s noteworthy that Walmart frequently emphasizes its substantial investments in automation. From an external perspective, these deals appear to serve both practical competitive purposes and public relations goals, enhancing Walmart’s image as a competitor to Amazon.

The agreement will extend Symbotic’s technology to 25 additional Walmart distribution centers (the two companies have been conducting pilot programs since 2017) over “several years,” according to Walmart. I’ve previously suggested (and will continue to do so) that one or more of these robotic fulfillment companies would be a logical acquisition target for Walmart, although Symbotic’s existing relationships with competitors like Target may present challenges.

Berkshire Grey, meanwhile, is pursuing a public listing. Shareholders of Revolution Acceleration Acquisition Corp. (RAAC) are scheduled to vote on the SPAC merger on July 20. Fetch, soon to be acquired, announced a partnership with supply chain logistics company Korber for a new pallet robot designed to replace forklifts.

This week featured a couple of compelling research projects. Devin covered research from Facebook AI, UC Berkeley, and Carnegie Mellon University exploring Rapid Motor Adaptation, a technique enabling quadrupedal robots to adapt to uneven terrain in real-time. A researcher from Berkeley succinctly stated: “We do not learn about sand, we learn about feet sinking.”

I also reported on research at MIT’s CSAIL involving the use of robotic arms to assist people with getting dressed. This technology holds promise for eldercare robotics and aiding individuals with mobility limitations.