Research report on the U.S. large-joint reconstructive implant market

Decision Resources GroupJun 6 2014

Decision Resources Group finds that the United States large-joint reconstructive implant market will grow to a value of $8.8 billion in 2022, primarily as a result of the aging population because the elderly are most at risk of developing severe osteoarthritis. Market growth will, however, be dampened by the increasing activity of group purchasing organizations, which allow hospitals to buy products such as reconstructive implants in bulk at a discount. As a result, market expansion will be modest through 2022.

Other key findings from Decisions Resources Group's coverage of the U.S. large-joint reconstructive implant market:

• Implementation of ACA: The market, particularly the knee implant segment, experienced an unexpected uptick at the end of 2013 as patients and practitioners who were concerned about effects of the implementation of the Affordable Care Act (ACA) decided to pull procedures that would have been scheduled at the beginning of 2014 into 2013.
• Shift from MOM to COC hip implants: The decline in the popularity of hip resurfacing as well as metal-on-metal (MOM) hip implants will continue, with the strongest decline occurring over the next few years. This shift will facilitate re-adoption of ceramic-on-ceramic (COC) implants as physicians show increasing confidence in new COC designs, which have resolved prior concerns related to audible postoperative implant squeaking.
• Stagnating innovation: Although the launch of premium products can normally help to offset price declines, surgeons continue to show a preference for older-generation implants that have a proven track record. Combined with the recently implemented medical device excise tax and increasing difficulty in obtaining Food and Drug Administration approval, many companies will reduce their operating costs (including R&D budgets) and innovation will suffer as a result.

Comments from Decision Resources Group Senior Analyst Brady Baker:

• "The market has undergone significant consolidation over the past year. First, in 2013, Stryker acquired MAKO Surgical, representing the first investment in robotic surgery technology from a major competitor in the large-joint reconstructive implant market. Robotic assistance was used in approximately 15,000 knee reconstructive implant of procedures in 2013."
• "The most significant news in this market has been Zimmer's recent announcement of intent to acquire rival Biomet. This acquisition is expected to close in 2015 and will solidify Zimmer as the market leader in the large-joint reconstructive implant market, with approximately one-third of total market share."

Additional Resources:

• Brady Baker has written a Medtech 360 report on this subject entitled US Markets for Large-Joint Reconstructive Devices 2014.
• Decision Resources Group's Marketrack, which provides market share data by brand for the large-joint reconstructive implant device market, can be found here.