Global Market for Spinal Nonfusion Technology Devices to Reach over $800 Million by 2016

TORONTO–(EON: Enhanced Online News)–According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, the global market for spinal nonfusion technology devices will show significant growth to $814 million by 2016. This growth is based on an expanding elderly population worldwide, increased surgeon training on nonfusion technologies and techniques, and economic growth in emerging markets. Downward pressures from reimbursement cuts will somewhat limit growth through 2013. After 2013, the introduction of new devices will accelerate growth. Limited long-term clinical data has led to a lack of reimbursement for spinal nonfusion technologies worldwide. In the United States the majority of spinal nonfusion technologies are reimbursed on a case-by-case basis, with only cervical and lumbar artificial discs qualifying for full reimbursement from a national insurance provider. European interspinous process decompression devices will decline slightly through 2016 in light of stricter reimbursement rulings based on poor clinical outcomes. Under Japan’s stringent regulatory and reimbursement system, interspinous process decompression devices are the only spinal nonfusion technology device available.
“In the US, Europe, and Asia Pacific markets, new technologies such as nuclear disc prostheses and facet arthroplasty devices are expected to enter the market in the next five years, increasing revenues,” said MRG Analyst René Azeez. “Spinal nonfusion technology is relatively new in Brazil, India and China, and will show strong growth of about 13 percent per year in those countries. The fast-growing Chinese market will reach a value of over $60 million by 2016.” Many spinal nonfusion technology segments are controlled by small niche competitors that have devoted their resources to developing one type of technology. Examples include Intrinsic Therapeutics’ Barricaid, along with Gentis’ DiscCell and Facet Solutions’ (acquired by Globus Medical) ACADIA. Without larger companies competing in the nuclear disc prosthesis, annulus repair device and facet arthroplasty device segments, these smaller competitors are well positioned to thrive over the next five years, pending the accumulation of favorable clinical data.