SOURCE: Q2 Metrics

Q2 Metrics

July 20, 2015 10:33 ET

The US Spinal Implant Market to Reach $6.4 Billion by 2024

Shifts in Procedure and Product Mix to Offset Pricing Pressures Through 2024, According to Q2 Metrics

TORONTO, ON--(Marketwired - July 20, 2015) - According to Q2 Metrics, the leader in spine market insight and analysis, the US spinal implant market has rebounded nicely since growth bottomed out in 2012. Valued at over $5 billion in 2015, the US spinal implant market will grow to $6.4 billion over the next ten years, representing a compound annual growth rate of 2.4%.

The US spinal implant market is a mature market with its largest product segments -- traditional anterior cervical plating and posterior thoracolumbar pedicle screw fixation -- featuring largely commoditized products and a lack of product innovation. Combined with ever-mounting pricing pressure from multiple points along the supply chain, steady pricing decreases are expected in most segments of the spinal implant market through 2024. Fortunately, shifts in procedure and product mix to premium-priced artificial discs, plate/cage hybrid devices with integrated screw fixation, and minimally invasive alternatives will help offset declining unit prices. The main beneficiaries of these shifts in the short term are the legacy leaders in artificial discs -- Medtronic Spinal and Biologics (MDT) and DePuy Synthes Spine (JNJ) -- and pure-play spine companies with a noted focus and strength in these growing segments, including Nuvasive (NUVA), Globus (GMED), and LDR Medical (LDRH).

"We're seeing strong momentum in both hospital and physician reimbursement for artificial discs, which will help drive double-digit growth in this segment over the next ten years," said Q2 Metrics President Aaron Dickson. "And while the thoracolumbar market has been hardest hit by pricing pressures, premium-priced LLIF and TLIF devices continue to cannibalize their ALIF and PLIF counterparts, helping drive a greater than $1 billion growth in this segment by 2024."

Q2 Metrics' new US Spinal Implant Market Insights: Segmentation & Forecast Study 2015 combines a full quantitative segmentation and forecast for all procedure/unit volumes, device utilization ratios, average selling prices and revenues with insightful, qualitative graphics and analysis to provide a holistic view of the spine markets and segments that matter most.

Moreover, the Study is the first to leverage Q2 Metrics' new segmentation and reporting methodology, developed with industry to overcome the limitations presented by traditional, crowd-sourced "report-based" methodologies, including circular data bias, industry non-participation, strategic reporting on the part of participants. The result is a methodology that maximizes data objectivity by leveraging the nation's largest private claims database and pricing data that comes direct from hospital purchase registers, setting the new standard in spine market segmentation and forecasting.

About Q2 Metrics
Q2 Metrics (www.Q2Metrics.com) is the leading provider of market intelligence and insight to the global healthcare sector. The company provides its specialized market expertise through physician profiling metrics and tools, physician and facility volumetric data, market segmentation and forecast studies, and real-time facility audits.

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