European Market for Spinal Implants to Grow Slowly to Value of $755 Million by 2016

TORONTO, Jun 18, 2012 (BUSINESS WIRE) — According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, while demographic factors will increase volumes of spinal implant procedures, strong downward pressures on both selling prices and procedure volumes resulting from Europe’s financial crisis will keep the European spinal implant market from growing as strongly as it otherwise would. This market will reach a value of over $755 million by 2016.
Cost-containment efforts by cash-strapped hospitals will result in price declines in nearly every segment of the spinal implant market. Government health agencies will reduce reimbursements, most severely in Italy and Spain. Hospitals will thus put pressure on manufacturers to reduce prices. There has been an increase in public tenders, where hospitals solicit multiple bids when purchasing spinal implants. Another downward pressure on prices comes from the increasing influence of group purchasing organizations (GPOs). GPOs coordinate the sale of spinal implants through bulk purchases negotiated in long-term contracts, and thus receive substantial discounts.
Constrained budgets will also have an effect on procedures, restricting the intake of patients who are undergoing these largely elective treatments. Again, this effect will be strongest in Italy and Spain. In both countries, hospitals have been forced to reduce staff through attrition and to limit yearly procedures to conserve budgets. In addition, unemployment and growing waiting lists have caused many patients to delay undergoing spinal implant procedures.
“Minimally invasive surgeries have been growing in popularity because of surgeon preference and patient demand,” said MRG Analyst Daniel Brown. “This will increase the number of thoracolumbar fusions performed less invasively, in particular lateral lumbar interbody fusions. Quicker patient recovery times and shorter hospital stays offer the potential for cost savings.”
The market leaders in the European market for spinal implants are Medtronic Spinal & Biologics, as well as DePuy Spine and Synthes Spine, which have recently merged. The saturated market, with mostly commodity products, requires companies to compete on price.
Millennium Research Group’s European Markets for Spinal Implants 2012 report includes, unit, average selling price and revenue information, along with market drivers and limiters and competitive landscape for spinal fusion implants and spinal nonfusion technologies sold in France, Germany, Italy, Spain and the United Kingdom.