Joint down, spine up: Trends in orthopedics (MassDevice)
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Group purchasing organization Novation reports on recent trends in orthopedic products, finding upward momentum in spinal devices but slowing growth in U.S. joint markets.
U.S. orthopedics makers faced ups and downs in recent years as the spinal products market continued to expand and growth in hip and knee joint products slowed, according to group purchasing organization Novation.
The total joint market grew by 3.2% between 2009 and 2010, a “sharp decline” from growth of 5.3% the prior year.
Meanwhile, the spinal products market grew by 3.9% between 2010 and 2011 and is expected to grow 2.7% annually to hit $7 billion by 2017, according to the report.
“Growth in the spine market is largely driven by motion preservation devices, most notably artificial discs, as well as growth in all aspects of minimally invasive surgery,” Novation noted. “Traditional fusion markets are expected to remain flat and to eventually decline in value during the next several years as motion preservation and MIS procedures become increasingly common.”
Novation also reported optimistic expectations for orthobiologics, products with regenerative capabilities to fuse and stimulate bone growth, as well as for arthroscopy and soft tissue repair.
Joint products, however, weren’t as lucky as prevailing trends were marked with pricing pressures and lackluster innovation.
“The overriding market conditions attributed to the declining growth include fewer innovations in technology, a decrease in physician payment, relatively flat DRG payments from Medicare and hospitals’ increasing willingness to challenge manufacturer price increases,” according to the report. “This trend of slowing growth in procedure volumes was accompanied by a 4th consecutive year of declining manufacturer price increases.”
Orthopedic giant Zimmer (NYSE:ZMH) dominated the arena with 24% market share, followed closely by Johnson & Johnson (NYSE:JNJ) subsidiary DePuy Orthopaedics andStryker (NYSE:SYK), which each held 23% of the market, according to Novation.