Lower Pricing Unlikely to Boost Implantable Cardioverter Defibrillator Sales

Setting a lower price to enter a competitive market with established brand leaders is a common penetration pricing strategy adopted by many medical device manufacturers. However, despite the strategy’s appeal in setting a pricing floor with the potential to gain quick market share from competitors, it may not work for the implantable cardioverter defibrillators (ICDs) market, according to GlobalData. 
 
The ICDs market is segmented into three categories; single chamber ICDs, dual chamber ICDs, and subcutaneous ICDs, which are used to monitor heart rhythms and deliver therapy to correct heart rates that are too fast, a condition that can lead to sudden cardiac arrest. Medtronic plc is the global market leader for single chamber ICDs with a 41% market share, ahead of Biotronik with a 22% share and ahead of Abbott, and Boston Scientific.
 
According to GlobalData’s *global brand pricing tool, the global average selling price (ASP) of the single chamber ICDs portfolio within Medtronic and Biotronik is more than $14,000 and $12,500, respectively. 
 
Medtronic launched its most recent product, Cobalt XT, in 2021. Cobalt XT is enabled with BlueSync technology to offer connected health, including the ability for clinicians to program the device through app-based remote monitoring, thereby reducing potential exposure to COVID-19. As a premium brand in the ICD market, Medtronics average selling price (ASP) for the Cobalt XT is 35% higher than the previous model Cobalt.

“As pricing in the ICD market is currently set at a premium level, this indicates that a pricing strategy alone may not be effective enough in persuading surgeons to move away from competitor products,” said Tina Deng, MSc, a principal medical devices analyst at GlobalData. “Medtronic has years of experience in the field with a good reputation, offers a high quality product, a diverse ICD portfolio and continually invests in product improvement and new product lines. These factors will be reflected in their product pricing and are clearly important considerations alongside price in their clients’ decision making process.”
 
* GlobalData global brand pricing tool: this new tool estimates brand-level selling prices (including discounts) of key medical devices in key global geographies.