Big growth in biomaterials market (Health Care Finance News)
Ortho device companies expand to boost profits
NEW YORK – Advances in gene therapy and stem cell research are leading to double-digit annual sales growth in the orthopedic biomaterials market, according to the healthcare market research firm Kalorama Information.
In its recently published report, “Orthopedic Biomaterials, the World Market,” New York City-based Kalorama said biomaterials represent 14 percent of the global orthopedics market, or about $5.8 billion in 2010.
“Advances in gene therapy and stem cell research may offer new solutions for state-of-the-art treatments for musculoskeletal conditions,” said Bruce Carlson, publisher of Kalorama Information. “Many researchers believe that genetically engineered stem cells will have a significant impact on the fields of regenerative medicine and tissue engineering as a powerful cell source that will work, in conjunction with biomaterials, to treat tissue and bone loss.”
Musculoskeletal conditions are the most common cause of chronic disability. These conditions comprise over 150 diseases and syndromes, which are usually progressive and associated with pain. They can broadly be categorized as joint diseases, physical disabilities, spinal disorders and conditions resulting from trauma. Those conditions with the greatest impact on society include rheumatoid arthritis, osteoarthritis, osteoporosis, lower back pain and limb trauma.
Biomaterials that the major orthopedic device companies have taken on to boost profits and earn a better growth rate include:
• Allografts: These grafts, usually produced from bone material from a tissue bank, are used to replace tendon and ligament tissue.
• Polymer-based bone substitutes: Polymer materials are used when temporary repair of tissue is required.
• Viscosupplementation: Elastoviscous fluid is injected to treat pain of osteoarthritis of the knee.
“Many of the companies that are getting into the biomaterials market are the same companies that sell traditional products commonly used in knee, hip and spine replacement surgeries,” said Carlson. “These companies are developing products or buying companies that make successful products. This is a way for them to diversify.”
Among these companies are Zimmer, Johnson & Johnson (through its DePuy Division), Medtronic and Stryker – all are aggressively competing in the hip, knee and spine implant markets, as well as other areas, said Carlson.
Garry Clark, Zimmer’s director of public relations, confirmed that the company is developing “orthobiologic products due to a desire to expand across all areas of care.”
“We will continue looking toward engineered tissues that fulfill the same function as more invasive procedures,” said Clark. “The goal is to provide early intervention (with treatments such as) cartilage allografts and injectables that temporarily relieve joint pain.”
Stryker, which recently acquired orthobiologics company Orthovita, also confirmed their desire to grow their presence in the biomaterials market.
“With this acquisition, Stryker is meaningfully expanding our orthobiologics product portfolio and strengthening our position in key segments of the spine, orthopedics and biosurgery markets,” said Eric Teutsch, vice president, orthobiologics.
“For the near future, we will focus on building on the success of Orthovita’s product lines, which include synthetic bone graft, vertebral augmentation and hemostasis products,” Teutsch said.
The financial opportunities are undeniable.
“While the conventional market may only see growth rates of two to four percent due to the recession, insurance procedure denials and delays and competitive effects on pricing growth rates for the biomaterials market are almost triple that at eight to 11 percent,” said Carlson.
An important factor driving revenue growth for biomaterials is that insurance companies are more likely to approve reimbursement for biomaterials than for standard materials. “Their efficacy in reducing healing time and increasing the chance that an implant surgery will be successful has lead to acceptance among physicians and insurance bodies,” confirmed Carlson.