Positive US Payer Decisions Expected to Drive Artificial Disc Replacement Market

Currently, 11 artificial disc replacement (ADR) devices are approved by the U.S. Food and Drug Administration (FDA). The first ADRs were for lumbar cases. However, insurance companies in the United States stopped covering the procedure in 2013 despite it having FDA approval, calling it experimental and investigational. During the following years, lumbar disc replacement rates dropped, and manufacturers focused on cervical disc replacement devices. Cervical disc replacement growth has been steady, and evidence has shown that multiple-level surgeries are safe and effective.

ADR surgery has the potential to replace fusion surgery for some patients. This is especially true for cervical spine cases, where motion preservation is a major factor in postoperative success. Despite the potential benefits of artificial discs, ADR has not been markedly successful in taking market share from fusion devices. This is due, in part, to the historical lack of payer coverage in the US.

In mid-2018, Tricare, a U.S. military health insurance provider, approved coverage of the ActivL lumbar disc replacement device from Aesculap. Shortly after, additional private insurers followed suit by offering coverage for lumbar disc replacement surgery. Many still have limitations, such as patient age, but the change will make the procedure available to millions of patients.

The change in U.S. payer coverage is likely to drive development of newer devices in all markets. There are at least six times more lumbar disc replacement device options available outside of the United States. Lumbar artificial discs cost nearly twice as much as a cervical disc, so an increase in use in the United States could have a significant impact on growth of total ADR revenue in the United States.

Market Scope estimates that the global ADR market will grow at a compound annual rate of 8.5 percent to reach nearly $660 million by 2024. The growth will be primarily powered by increased access to health care in China and India and the increased adoption of lumbar disc replacement devices in the United States.

Market Scope recently published its 2019 Artificial Disc Replacement Market Report. In-depth topics for this report include prospective patients, global access to care, ADR procedure economics, clinical data, and surgical device designs. Its regional analyses are split into eight categories: United States, Western Europe, Japan, Other Wealthy Nations, China, India, Latin America, and Rest of World. In addition, the company profiles the top seven manufacturers in the space, including contact information, history, strengths, weaknesses, and future plans.

Market Scope is a source for market data, independent perspective, and objective analysis in today’s healthcare marketplace.