Below The Knee - Market Signal

www.belowtheknee.co

WoundCareFund: +1.75% (week ending Feb 21, 2026)

Sharp outperformance vs. broader markets:

Outperformance: +312 to 374 basis points

🔼 Avita Medical – Strong upward move Renewed confidence in RECELL adoption momentum. After periods of volatility, investors appear to be recalibrating expectations around procedure growth and expanding indications. Any signal of accelerating utilization in regenerative platforms drives sharp re-ratings.

🔼 Biostem Technologies – Rally continues Momentum in regenerative medicine sustained. Positive sentiment around placental-derived biologics, reimbursement visibility, and distribution scale fueled the move. Small-cap wound care names move quickly when capital rotates back into high-growth medtech.

🔼 Integra LifeSciences – Defensive strength Improving confidence in surgical recovery trends and regenerative portfolio performance. Integra trades with broader medtech sentiment—this week, capital favored profitable, diversified device platforms over speculative growth names.

Next Week:

Two Weeks:

Watch for: Guidance on 2026 biologics reimbursement environment, commentary on CAMPs market dynamics post-CMS LCD changes.

McKesson Expands Wound Care Distribution
Accelerating scale in wound care services signals increased competition in U.S. homecare market. Strategic positioning as reimbursement and site-of-care shifts favor lower-cost settings. (Source: Company announcement)

Kane Biotech U.S. Commercial Push
Signed multiple distribution and sales agreements for FDA-cleared revyve® Antimicrobial Wound Gel. Ramping commercial presence in advanced wound care channels ahead of initial shipments. (Source: Company press release)

Dynarex Next-Gen NPWT Pump
Launched portable negative pressure wound therapy system designed for enhanced mobility and ease of use across post-acute and home care settings. Addresses market demand for ambulatory NPWT solutions. (Source: Company announcement)

DARCO Body Armor® PFA Walker
New off-loading/immobilization solution tailored to partial foot amputation recovery—niche but high-impact segment in limb salvage rehab. (Source: DARCO International)

Medline Foot & Ankle Plating Systems
Rolling out expanded ankle fracture and foot reconstruction hardware at ACFAS 2026. Broadening surgeon options in extremity reconstruction. (Source: Medline)

Avita Medical Investor Webinar Scheduled
Will provide business updates and discuss RECELL® commercialization progress, platform expansion plans. (Source: Company IR)

BioStem Acquires BioTissue Wound Care Business (Recent)
Consolidation continues in advanced wound care. Acquisition adds sales force reach and product breadth, particularly in placental-derived biologics. (Source: Business press)

NPWT in Limb Preservation
New Medscape piece reinforces negative pressure wound therapy as core intervention in diabetic foot ulcer management amid rising chronic wound prevalence. Clinical validation remains strong. (Source: Medscape)

McKesson's accelerated push into wound care distribution signals something more strategic than portfolio expansion: it's about capturing the entire post-acute care pathway.

Here's what's really happening:

Medicare's push toward lower-cost care settings (home health, SNF, outpatient) is reshaping wound care economics. McKesson isn't just adding wound products to its catalog—it's positioning to control fulfillment, compliance, and reimbursement optimization across these fragmented channels.

Why this matters:

The strategic read: Distribution consolidation is deflationary for commodity wound products but accelerates adoption of differentiated, clinically validated technologies that can't be easily substituted.

Winners: Platforms with strong clinical data, workflow integration, and reimbursement clarity (e.g., NPWT innovators, AI-enabled wound imaging, advanced biologics with RCT evidence).
Losers: Commodity dressing manufacturers, "me-too" CAMPs without differentiation, small distributors without vertical integration.

McKesson's move is less about wound care growth and more about margin capture in a fragmenting market. Capital will favor companies that own clinical differentiation—not just SKU proliferation.

Negative pressure wound therapy doesn't generate headlines like AI imaging or spray-on skin, but it remains the most clinically validated intervention in limb salvage—and it's entering a new competitive cycle.

NPWT is mature but not saturated. Penetration in diabetic foot ulcers is high (~70% of appropriate cases), but three trends are reopening growth:

Our NPWT category scores companies on:

Category leaders (scores 7.0+):
Companies with strong ambulatory platforms, payer relationships, and post-acute distribution. Look for incumbents defending share vs. nimble entrants targeting underserved segments (home health, wound centers).

Strategic takeaway: NPWT consolidation is happening. Large strategics (Smith+Nephew, Solventum, Convatec) control hospitals. Opportunity exists in fragmented post-acute, where innovation in portability, connectivity (remote monitoring), and ease-of-use commands premium pricing.

Full NPWT competitive analysis and company scores available here —> https://www.belowtheknee.co/innovation-market-report

Mayo Clinic Vascular and Wound Symposium – Arizona
Focus: Multidisciplinary approach to vascular disease and wound management. 18.25 CME credits.

ACFAS 84th Annual Scientific Conference – Las Vegas
Focus: Foot and ankle surgery innovation. Expect hardware launches (Medline plating systems) and case presentations on limb reconstruction.

SALSAL Community Screening Event – Phoenix, AZ
Community event from the Save a Leg, Save a Life (SALSAL) foundation to drive awareness into the community around PAD, CLI and preventing complications from diabetes and vascular disease throug early screening.

Global Foot and Ankle Summit – Goa, India
Theme: "Revisiting The Complex: Mastering The Art Of Revision Surgery"
International focus on advanced reconstruction techniques.

CAMPs Wound Care Summit – West Palm Beach, FL
Why it matters: Premier biologics/skin substitutes event addressing new CMS reimbursement rules (effective Jan 1, 2026). 350+ attendees, including KOLs, regulatory experts, and commercial leadership from Organogenesis, MiMedx, and other CAMP manufacturers.

Key topics:

This is the event for biologics market intelligence. If you're tracking CAMPs, this is non-negotiable attendance.

Wound Care Today 2026 – Telford, UK
Hands-on skills, product demos, 50+ exhibitors. European market focus.

SAWC Spring / Wound Healing Society Annual Meeting – Charlotte, NC
World's leading interdisciplinary wound care conference. Thousands of attendees, 80+ sessions, evidence-based education. Mark your calendars.

Professional Tier Launching Soon:
Deeper strategic insights, exclusive Innovation Index updates, quarterly briefing calls, and early access to market intelligence.

Interested? Reply to this email or visit belowtheknee.co

Website: belowtheknee.co
Forwarded from a friend? Subscribe here

Below The Knee is an independent market intelligence newsletter covering wound care, foot & ankle, and limb salvage markets. Analysis and opinions are solely those of the author and do not constitute investment advice.