Report: Biologics is growing faster than Implants
Biologics Growth Faster Than Implants (Biloine Young @ OTW)
The rush to engage in stem cell research is leading to double-digit annual sales growth in the orthopedic biomaterials market, according to the health care market research firm Kalorama Information. A factor driving revenue growth for biomaterials is that insurance companies are more likely to approve reimbursement for biomaterials than for standard materials, indicated Bruce Carlson, publisher of Kalorama Information. “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,” he said.
In its recently published report, “Orthopedic Biomaterials, the World Market,” Kalorama said biomaterials represented 14% of the global orthopedics market, or about $5.8 billion in 2010. “While the conventional market may only see growth rates of 2% to 4% 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 8% to 11%,” said Carlson.
Musculoskeletal conditions are the most common cause of chronic disability as they comprise over 150 diseases and syndromes, which are usually progressive and associated with pain. Those conditions with the greatest impact include rheumatoid arthritis, osteoarthritis, osteoporosis, lower back pain and limb trauma.
“Advances in gene therapy and stem cell research may offer new solutions for state-of-the-art treatments for musculoskeletal conditions,” said Carlson. “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.”
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. “This is a way for them to diversify.
Among these companies are Zimmer Holdings, Inc., Johnson & Johnson (through its DePuy Division), Medtronic, Inc. and Stryker Corp. All are aggressively competing in the hip, knee and spine implant markets, as well as other areas, said Carlson.
According to 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,” as is Stryker which recently acquired the orthobiologics company Orthovita.