Maria Shepherd10.22.10
Cardiovascular Market Growth Trends
The global cardiovascular device market is one of the largest segments in medical devices and is projected to reach $54.3 billion by 2015.1This is important because all medical device companies benefit from development in the cardiovascular space because an increase in cardiovascular procedures drives the use of a wide range of medical products. In addition, a segment of these patients may improve enough to have other procedures, such as a knee or hip replacement. However, there are risks associated with many of the products that are considered “blockbusters” in the cardiovascular sector.2 For example, according to The Wall Street Journal, in the market for left ventricular assist devices (LVAD), there may be adoption risk due to the early stage of product evolution. Patient candidates for LVAD usually are quite sick. When physicians consider patient eligibility for the device, they also must consider the invasiveness of the procedure.
Market Drivers
Among the usual suspects are an increasing prevalence of cardiovascular diseases, an aging population and introduction of innovative products. Two new drivers are the increasing prevalence of co-morbidities such as diabetes and obesity, and emerging markets outside the United States.
Other leading trends in the cardiovascular market include:
• MRI compatible cardiac rhythm management
• Minimally invasive technology to drive valve replacement in high-risk patients
• Bio-absorbable stents
• New coating technologies to reduce stenosis
• Bio-engineered stents to quickly heal sclerotic tissue
• New and improved diagnostic tools and technologies, e.g. intravascular ultrasound.
Growth is Global, Especially Asia
There is high opportunity projected for the Asia-Pacific drug-eluting stent (DES) market.4 While the Japanese market remains the largest, China is the second-largest market, and its size is expected to exceed Japan, with expected growth of almost 15 percent through 2014. Although Asian markets have lower per capita healthcare expenditures than the United States and European Union, they are expected to be the future growth markets of the health services industry.5 (See chart on page 38.)
For example, the approval of new DES in China is generating a high level of marketing activity at interventional cardiology device and drug manufacturing companies. The opportunity for DES revenue in China is significant, driven by:
• Increasing prevalence of coronary artery disease in the country
• Growing rates of co-morbidities such as diabetes and obesity
• Growing elderly population
• Trend towards unhealthy lifestyles (poor dietary habits, smoking)
• Dramatic growth of the middle class in urban areas
• Increasing number of Chinese are now expected to be able to afford costly, non-reimbursed medical procedures.
The worldwide recession has caused many medical device companies to pull back to more conservative strategies. However, real growth opportunities exist for those companies willing to invest in future growth and non-traditional strategies.
References:
1. Global Cardiovascular Devices Pipeline Landscape: Analysis of Key Upcoming Products and Technologies, Global Data, 2010.
2. Investor Downside Risks for Cardiovascular Devices a Topic in WSJ Transcript Medical Devices Report, April 28, 2009.
3. Global Cardiovascular Devices Pipeline Landscape: Analysis of Key Upcoming Products and Technologies, Global Data, 2010.
4. Abbott Vascular Targets Asia Pacific, www.mrg.net.
5. Business Insights, March 2009.
Maria Shepherd has 20 years of leadership experience in medical device/life sciences marketing in small start-ups and top-tier companies. Following a career in senior management positions including vice president of marketing for Oridion Medical, director of marketing for Philips Medical and Boston Scientific, she founded Data Decision Group. Data Decision Group provides critical data to support sound decision making. The firm quantitatively and qualitatively sizes opportunities, evaluates new technologies, and assesses prospective acquisitions. Shepherd has taught marketing and product development courses in the WPI/MassMEDIC Medical Device Certificate and HCMA programs, and can be reached at (617) 548-9892 or at mshepherd@ddecisiongroup.com
The global cardiovascular device market is one of the largest segments in medical devices and is projected to reach $54.3 billion by 2015.1This is important because all medical device companies benefit from development in the cardiovascular space because an increase in cardiovascular procedures drives the use of a wide range of medical products. In addition, a segment of these patients may improve enough to have other procedures, such as a knee or hip replacement. However, there are risks associated with many of the products that are considered “blockbusters” in the cardiovascular sector.2 For example, according to The Wall Street Journal, in the market for left ventricular assist devices (LVAD), there may be adoption risk due to the early stage of product evolution. Patient candidates for LVAD usually are quite sick. When physicians consider patient eligibility for the device, they also must consider the invasiveness of the procedure.
Among the usual suspects are an increasing prevalence of cardiovascular diseases, an aging population and introduction of innovative products. Two new drivers are the increasing prevalence of co-morbidities such as diabetes and obesity, and emerging markets outside the United States.
• MRI compatible cardiac rhythm management
• Minimally invasive technology to drive valve replacement in high-risk patients
• Bio-absorbable stents
• New coating technologies to reduce stenosis
• Bio-engineered stents to quickly heal sclerotic tissue
• New and improved diagnostic tools and technologies, e.g. intravascular ultrasound.
Growth is Global, Especially Asia
There is high opportunity projected for the Asia-Pacific drug-eluting stent (DES) market.4 While the Japanese market remains the largest, China is the second-largest market, and its size is expected to exceed Japan, with expected growth of almost 15 percent through 2014. Although Asian markets have lower per capita healthcare expenditures than the United States and European Union, they are expected to be the future growth markets of the health services industry.5 (See chart on page 38.)
• Increasing prevalence of coronary artery disease in the country
• Growing rates of co-morbidities such as diabetes and obesity
• Growing elderly population
• Trend towards unhealthy lifestyles (poor dietary habits, smoking)
• Dramatic growth of the middle class in urban areas
• Increasing number of Chinese are now expected to be able to afford costly, non-reimbursed medical procedures.
The worldwide recession has caused many medical device companies to pull back to more conservative strategies. However, real growth opportunities exist for those companies willing to invest in future growth and non-traditional strategies.
References:
1. Global Cardiovascular Devices Pipeline Landscape: Analysis of Key Upcoming Products and Technologies, Global Data, 2010.
2. Investor Downside Risks for Cardiovascular Devices a Topic in WSJ Transcript Medical Devices Report, April 28, 2009.
3. Global Cardiovascular Devices Pipeline Landscape: Analysis of Key Upcoming Products and Technologies, Global Data, 2010.
4. Abbott Vascular Targets Asia Pacific, www.mrg.net.
5. Business Insights, March 2009.
Maria Shepherd has 20 years of leadership experience in medical device/life sciences marketing in small start-ups and top-tier companies. Following a career in senior management positions including vice president of marketing for Oridion Medical, director of marketing for Philips Medical and Boston Scientific, she founded Data Decision Group. Data Decision Group provides critical data to support sound decision making. The firm quantitatively and qualitatively sizes opportunities, evaluates new technologies, and assesses prospective acquisitions. Shepherd has taught marketing and product development courses in the WPI/MassMEDIC Medical Device Certificate and HCMA programs, and can be reached at (617) 548-9892 or at mshepherd@ddecisiongroup.com