New Report Predicts Biomaterials Growth

According to Millennium Research Group, the U.S. market for orthopedic biomaterials will grow at an average of just under 7 percent per year, to total approximately $4 billion by 2016.

While the number of procedures using orthopedic biomaterials will grow significantly through 2016, lower reimbursement rates from insurers will limit average selling prices, the Toronto, Canada-based research firm predicted.

In addition, Medtronic Spinal & Biologic’s Infuse, still the highest revenue-generating product in 2011, faces challenges associated with negative reports on off-label use, which made up a significant portion of the product’s use. This will have a continued negative effect on the market as a whole. companies are seeking ways to stay competitive, analysts said.

“Larger companies involved in the orthopedic biomaterials space and the US healthcare market at large, have struggled to find ways to extend their growth organically because of the economic challenges,” said Aaalyst Mashkur Reza. “As a result, some of these companies, such as Sanofi, have looked at merger and acquisition strategies to enter growing segments, while others, such as Johnson & Johnson, continue to use merger and acquisition strategies to complement its product portfolio in segments it competes in. Both of these are legitimate strategies to foster additional growth.”

In addition to a continued rise in procedure volumes, the market will see increased demand for premium-priced products seen as having more favorable properties. These include second-generation synthetics, such as Vitoss BA, and orthopedic stem cell products, such as Osteocel, within the bone graft substitutes market, along with 1-injection treatments in the HA viscosupplementation market, such as Synvisc-One. The HA viscosupplementation market will show the strongest growth through 2016, as rising awareness coupled with the 2012 launch of two 1-injection products (Seikagaku’s Gel-One and Anika Therapeutics’ Monovisc) will strengthen demand for these premium-priced products.