New Report Predicts Price Pressure Will Hold Back US Large Joint Market Growth

In short

Market intelligence company Millennium Research Group (MRG), gets quite a bit of coverage on our site, not least because it churns out reports that are typically well-researched and cut to the chase. In a new report entitled “US Markets for Large-Joint Reconstructive Implants 2012”, the authors predict that the net effect of a combination of eroding prices, growth in procedure numbers and especially a growth in revision surgeries will be a slight annual growth, making the US market worth $7.2Bn in 2016.

Background

The growing power of group purchasing organizations (GPOs)in the United States will be a significant cause of price decline. In addition, hospital budget constraints have lead many facilities to place greater pressure on manufacturers to reduce selling prices of implants. This, combined with increased competition between manufacturers for share in a mature market will continue to exert downward pressure on prices over the next five years.

Growth in procedures, however, driven by an increasing over-65 population as well as the growing prevalence of osteoarthritis, will offset these price declines, leading to slight annual growth to $7.2 billion in 2016. The greatest growth will be seen in revision procedures for hip and knee implants.

Knees up

Knee revisions will be one of the fastest-growing segments overall. Many primary total knee arthroplasty, unicondylar and patello-femoral implants placed during the surge in knee replacement procedures in the mid-1990s will reach the end of their life cycle over the coming years and require replacement. Most of these will be complete revisions, rather than hinged or minor revisions, since implant alignment is a paramount factor in avoiding further revisions.

Hip revisions

“Hip revision implants will also be a fast-growing market segment,” said MRG Analyst Daniel Brown. “Most hip revisions will continue to be complete revisions, but the acetabular cup segment will have the highest growth, a result of the growing use of modular femoral stems. By 2016, the hip revision segment will have grown to $430 million and the knee revision segment to $520 million.”

About the report

Millennium Research Group’s US Markets for Large-Joint Reconstructive Implants 2012 report includes procedure, unit, average selling price and revenue information, along with market drivers and limiters and competitive landscape for reconstructive knee implants and reconstructive hip implants in the United States. More details can be found here.

Source: Millennium Research Group (www.mrg.net)