SOURCE: Kalorama Information

Kalorama Information

April 08, 2011 11:11 ET

Acquisitions, Emerging Markets Key to Medical Device Industry Growth

NEW YORK, NY--(Marketwire - Apr 8, 2011) - Medical device companies saw growth in 2010 despite a slow economy and pressure on pricing, and that growth should continue for the next few years, according to Kalorama Information. In its report, "The Global Market for Medical Devices, 2ndEdition," the healthcare market research publisher indicated that the bellwether medical device companies it observed grew at an average of six percent in 2010, on the higher side of most growth estimates a year ago. The report noted that the $305 billion medical device market should see growth in that range over the next few years as a result of emerging markets, an aging population and increased acquisitions.

"In some categories, such as orthopedics or respiratory, it's simple demographics and improved economics in the developed world that led to growth," said Bruce Carlson, publisher of Kalorama Information and the author of Kalorama's yearly roundup of medical devices. "For most companies, double-digit growth in orders to India, China, Brazil and other nations fueled revenues."

Carlson noted that overall, about one percent more sales shifted outside the US between 2009 and 2010, consistent with the long-term trend of companies seeking international sales.

The medical device market is not without its challenges including regulatory procedures, group purchasing negotiations and a new tax as part of US health care reform. However, the report pointed to a robust amount of merger and acquisition activity in the market as an indication that the medical device industry is optimistic about the future. Among the acquisitions that occurred last year was Covidien's $2.6 billion acquisition of endovascular company ev3 Inc. Orthopedic giant Stryker purchased the neurovascular unit of Boston Scientific and Baxter Healthcare assumed bone graft maker Apatech. Medtronic acquired several companies, including spinal neuromodulation products company Axon Systems, heart valve maker ATS Medical and Invatec S.p.a, a producer of stents.

"It's a healthy sign that so many of the top companies chose 2010 to make strategic moves, either to divest unprofitable areas or to acquire areas that are in line with strategic goals and where cross-selling opportunities were present," Carlson said.

Kalorama Information's "The Global Market for Medical Devices, 2ndEdition" contains profiles of top device companies, a review of 2010 revenue performance, specific market sizes for categories of devices, and important trends in the industry. It is available at: http://www.kaloramainformation.com/redirect.asp?progid=81380&productid=6211502.

About Kalorama Information
Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter (http://www.twitter.com/KaloramaInfo) and LinkedIn (http://www.linkedin.com/groups?gid=2177845&trk=hb_side_g).

Contact Information