Report Predicts Bone Graft Market Growth

A new report by analyst company Frost & Sullivan finds that the U.S. bone grafts and bone grafts substitution market earned revenue of $1.6 billion in 2012, and is estimated to reach $1.65 billion in 2016.

A significant percent of the orthopedic patient population is comprised of baby boomers that lead active lifestyles and are prone to injuries. The younger demographic patient pool is also expanding, as minimally invasive surgery techniques enable partial joint replacement surgeries.

“Despite these market opportunities, companies are differentiating themselves on the cost effectiveness of their products due to the current economic scenario,” said Aarti Shetty, advanced medical technologies senior industry analyst for Frost & Sullivan. “With comparative effectiveness programs in place, the newer biologics technologies will be compared with existing, proven methods.”

Established procedures, including major orthopedic surgeries, do not pose a reimbursements issue. However, with increased innovation, the prices for bone graft products have started escalating, making cost-benefit analyses crucial for reimbursement.

Poor or lack of reimbursement for expensive innovative technologies hinders technology adoption, explained the report. The newer technologies in all segments have limited clinical data that supports their advantages over autografts. Thus, obtaining approval for reimbursement for products with minimal cost-benefit analyses is becoming increasingly difficult.

“Differentiation based on unique functions and patient outcomes in the bone graft substitutes market is becoming a vital competitive factor, especially with the entry of more competitors,” noted Shetty. “The introduction of new product segments with strong clinical data will give a significant boost to investors’ interest in the bone grafts and bone graft substitutes market.”

Frost & Sullivan is a market research company based in Mountain View, Calif.