05.30.08
Innovation & Change
One of the things I enjoy most about the orthopedic sector is the innovation. While most development seems evolutionary rather than revolutionary, things evolve pretty quickly. Unlike other life-sciences sectors, medical devices have a unique "hands-on" feeling about how products develop. So many factors shape new devices and updated iterations—new materials, science and research, coatings breakthroughs, more precise manufacturing capabilities, physician and nurse feedback and, of course, patient satisfaction. In this issue of Orthopedic Design & Technology, many of those topics converge.
This month's surface treatment feature (on page 54) provides insight into how surface treatments play a critical role in extending implant life. High-tech surface treatments promoting bone growth and implant fixation have been the primary means of achieving longevity goals, but more radical solutions are being explored to replace metal components with more organic, bone-like substances.
In the area of cutting-edge product development, Editor Jennifer Whitney adeptly examines the market drivers and companies making strides in the small-joint sector (page 38). Though advances in this market segment may be overshadowed by bigger markets such as large-joint and spine, the data may
surprise you. The extremities segment—shoulders, elbows, hands, wrists, ankles and feet—represented only about 2% ($500 million) of the total $32.7 billion orthopedic market in 2007. But, according to HealthpointCapital, the extremities segment is growing at a rate of 15% annually. That’s significant, particularly as other areas of orthopedics—such as large joint—are growing at slower rates.
Speaking of the growing and slowing of various orthopedic markets, I couldn’t wrap up without providing some additional market data. As with all market statistics, take them with a grain of salt and add a generous helping of your own industry experience; but they’re worth noting.
According to data from United Kingdom-based research firm Espicom, the future outlook for orthopedics—no shock—remains rosy. Along with continued gains made by typical sectors, non-traditional markets are gaining ground quickly. In the report, The World Orthopaedic Market Report 2008, analysts maintain that the era of growth sustained by replacement hips and knees has been surpassed by a new breed of products. For instance, the global market for orthobiologics was estimated at $2.3 billion in 2006 and is projected to reach $5.3 billion by 2011 at a compound annual growth rate of 18.3%. Used increasingly in spinal, total-joint, trauma and softtissue surgeries, synthetic bone graft substitutes and resorbables are beginning to replace traditional autografts and allografts (bone bank grafts), which account for more than 75% of today's bone graft procedures, according to the report.
“Growth in the orthopedics sector as a whole will outstrip average medical device sector growth, as innovative spinal and orthobiological products reach the market, supported by solid growth in trauma devices and the more mature reconstruction implant markets,” said Ian Taylor, Espicom’s research director.
To mess a bit with Mark Twain’s quote about the weather in New England: If you thought you understood all the intricacies of orthopedic technology and its markets, wait a minute—it’ll change.
Christopher Delporte
Group Editor