“Spinal nonfusion technology is relatively new in Brazil, India and China, and will show strong growth of about 13 percent per year in those countries.”
We often refer to the work of market intelligence company Millennium Research Group on our pages, not least because their frequently-released reports offer an insight into European and Global trends as well as the usual US stats.
In a new report the company predicts spinal nonfusion technology devices will show significant growth to $814 million by 2016, based on an expanding elderly population worldwide, increased surgeon training on nonfusion technologies and techniques, and economic growth in emerging markets. Downward pressures from reimbursement cuts will somewhat limit growth through 2013. After 2013, the introduction of new devices will accelerate growth.
Reimbursement continues to be a brake
Limited long-term clinical data has led to a lack of reimbursement for spinal nonfusion technologies worldwide. In the United States the majority of spinal nonfusion technologies are reimbursed on a case-by-case basis, with only cervical and lumbar artificial discs qualifying for full reimbursement from a national insurance provider. European interspinous process decompression devices will decline slightly through 2016 in light of stricter reimbursement rulings based on poor clinical outcomes. Under Japan’s stringent regulatory and reimbursement system, interspinous process decompression devices are the only spinal nonfusion technology device available.
Millennium Research comments
“In the US, Europe, and Asia Pacific markets, new technologies such as nuclear disc prostheses and facet arthroplasty devices are expected to enter the market in the next five years, increasing revenues,” said MRG Analyst René Azeez. “Spinal nonfusion technology is relatively new in Brazil, India and China, and will show strong growth of about 13 percent per year in those countries. The fast-growing Chinese market will reach a value of over $60 million by 2016.”
Companies in the space
Many spinal nonfusion technology segments are controlled by small niche competitors that have devoted their resources to developing one type of technology. Examples include Intrinsic Therapeutics’ Barricaid, along with Gentis’ DiscCell and Facet Solutions’ (acquired by Globus Medical) ACADIA. Without larger companies competing in the nuclear disc prosthesis, annulus repair device and facet arthroplasty device segments, these smaller competitors are well positioned to thrive over the next five years, pending the accumulation of favorable clinical data.
Millennium Research Group’s Global Markets for Spinal Nonfusion Technologies 2012 report includes procedure, unit, average selling price and revenue information, along with market drivers and limiters and competitive landscape for dynamic stabilization devices and artificial discs in the United States, Europe (France, Germany, Italy, Spain and the United Kingdom), Asia Pacific (Australia, Japan, and South Korea) and Brazil, India and China. Annulus repair devices and nuclear disc prostheses are covered for the US, Europe and Asia Pacific only.
Source: Millennium Research Group