We don’t expect to see a big bolus of joint replacement or spine business due to pent up demand. Companies expect price pressures to continue in joint replacement, trauma and spine, with average selling prices settling in at flat to slightly negative. At the same time, we’ll likely see an uptick in the contribution of mix due to introduction and/or further penetration of products like cups and nails from Zimmer, Synthes’ Angular Stable Locking and Vertebral Body Stent Systems, fracture repair plates and shoulder from Biomet, Exactech’s shoulder, knee and spine products, Stryker’s new Rejuvenate modular hip system, etc. Also look for companies to more frequently use “superior” clinical results as a means to derive premium prices for new products and/or win new business.
All told, 2010 will probably settle in at growth in most segments in upper single digit levels, with spine and biologics outpacing others by a point or two, as has been the case for years. It ain’t great, but again it’s better than some and worse than others. And at least we’re not building bombs.
Shirley A. Engelhardt is President and Founder of ORTHOWORLD Inc. and a founding partner of Knowledge Ventures, LLC, a venture capital firm solely focused on orthopaedic investments. Mrs. Engelhardt is the world’s foremost authority on the global orthopaedic markets and has authored thousands of articles on current and emerging trends, market dynamics and factors affecting the markets. She has accurately predicted nearly every major market trend of the past decade, while developing an international client base of hundreds of public and private entities.
OMTEC 2010 Speaker
Shirley Engelhardt presented the Keynote Breakfast Address on Wednesday, June 16 at OMTEC 2010 in Chicago. Mrs. Engelhardt discussed the dynamics of the global orthopaedic marketplace and their impact on the market’s health in the coming decade.
Attendees received these tools to put to immediate use:
- An understanding of global market dynamics – sales, demographics, procedures, growth, etc.
- An understanding of key market trends and their potential effect on market growth
- An understanding of key players, payers and providers and how they might work together in a challenging environment
A detailed abstract of this Keynote Address and a copy of Mrs. Engelhardt's presentation are available online.