New York, New York (PRWEB) May 09, 2013
The global medical device market reached 331 billion dollars in 2012, according to Kalorama Information, just 3% higher than 2011. The healthcare market research firm says reduced growth rate is the result of a challenged healthcare market in Europe and slow funding increases in the United States. The finding was lower than the firm had projected in 2012, and was made in its latest report on the industry, "The Global Market for Medical Devices, 4th Edition".
“Growth in the overall market was challenged as European and US healthcare systems reducing costs,” said Bruce Carlson, Publisher of Kalorama Information. “Those that did launched new products or acquired companies with novel products.”
In the U.S. Medicare, Medicaid, as well as state governments implemented anemic spending increases to hospitals, the key buyer of medical device products. The cuts took the form of non payment for patients for infections acquired at the hospital, or code recovery fees. In Europe, the extreme economic downturn in Spain, Ireland, Greece and Portugal led to layoffs and proposed reforms to the health care systems. Even emerging markets have grown spending less quickly than had been expected. Hospitals continued to purchase through group organizations and insist on transparent prices.
The beginning of 2013 saw the medical device industry make the first payments to the IRS for a new 2.3% excise tax on all classes of medical devices, as part of the 2009 Patient Protection and Affordable Care Act (referred to in this report as US healthcare reform). Many companies attributed layoffs to the tax in widely-publicized announcements, or said that they would not build additional U.S. facilities. Kalorama didn’t think the device tax factored into slow growth in 2012, but the report does predict long-term effects on venture capital investment and research spending in the industry.
In a slower-growing device market, there was little room for new entrants and giants dominated. Johnson & Johnson is the world’s largest medical device company, followed by imaging giants GE Healthcare and Siemens and cardiology and spinal device expert Medtronic. Other leading companies were Stryker, Covidien and Philips.
Emerging markets were a key strategy for leaders and the report notes a new trend last year: the acquisition of Chinese local companies by device giants. Johnson & Johnson acquired local Chinese company Guangzhou Bioseal Biotechnology Co. Ltd, while Medtronic announced it would acquire China Kanghui Holdings, a developer and producer of trauma and spine orthopedic transplants.
The full report, "The Global Market for Medical Devices, 4th Edition" covers these trends, lists company revenues and provides estimates of specific device markets. The report is available from Kalorama Information at http://www.kaloramainformation.com/Global-Medical-Devices-7546398/.