Despite A Difficult Competitive Environment, Opportunities Can Still Be Found In The Growing US Trauma Fixation Device Market Creative Marketing and Sales Strategies Have Yielded Success for Some Companies, According to Millennium Research Group
TORONTO, Nov. 14, 2013 /PRNewswire/ -- According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, the US trauma fixation device market will show continued growth over the forecast period despite considerable pricing pressure. Favorable demographics, such as the aging population, a rising number of sports injuries and growing obesity rates will be primary factors supporting procedure volume growth.
Nonetheless, increased bargaining from hospital group purchasing organizations as well as expected cuts in reimbursement will put considerable pressure on prices through 2022. Additionally, innovation may be hampered by proposed changes to the regulatory environment, which would require trauma fixation devices to go through the premarket approval process as opposed to the less rigorous 510(k) approval system. This will slow the release of premium-priced products and, as a result, prices will decline going forward.
Companies are responding to these market pressures by expanding their market presence or altering their sales tactics. For instance, in order to expand its presence in the trauma market, Johnson & Johnson acquired Synthes in 2012. The subsequent spin-off of the former's trauma division to Biomet increased Biomet's portfolio of trauma fixation products. Stryker is focusing on specific segments, leveraging its leading position in the intramedullary (IM) nail market through the provision of innovative devices and by leveraging established relationships with group purchasing organizations in order to bolster its share in the lucrative anatomic plate and screw market. To mitigate difficulties in its extremities division, which includes trauma fixation devices, Smith & Nephew has recently reshuffled its organization to offer bulk purchasing discounts on a more aggressive scale in the hopes of appealing to cost-conscious customers.
"Despite significant challenges, competitors in the US trauma device market have adopted creative strategies to maintain their revenues," said MRG Analyst Giridhar Madhusudhan. "Outside of general portfolio expansions through M&A and changes to sales tactics, companies are also focusing on niche segments of the market, such as deformity corrections and minimally invasive technologies, in order to generate revenues."
Millennium Research Group's US Markets for Trauma Devices 2014 report includes unit, procedure, average selling price and revenue information, along with market drivers and limiters and a competitive landscape for plates and screws, IM nails, cannulated screws, dynamic hip screws, ancillary trauma devices, external fixation devices and long-bone stimulation devices in the United States.
About Millennium Research Group
Millennium Research Group (www.MRG.net), a Decision Resources Group company (www.DecisionResourcesGroup.com), is the global authority on medical technology market intelligence and the leading provider of strategic information to the healthcare sector. The company provides specialized industry expertise through multiclient market research, ongoing Marketrack™ projects, customer loyalty tracking, facility-level procedure forecasting, and customized solutions.
About Decision Resources Group
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SOURCE Millennium Research Group