Cardiovascular Research
By: Eric J. Oden, Vice President
The Cardiovascular Equipment space represents a select set of companies focused on developing, designing, and marketing devices, implants, instruments, and supplies related to the cardiovascular system. This includes stents, artificial hearts, catheters, pumps, and a spectrum of other products. With cardiovascular disease being the leading cause of death worldwide and a rapidly aging baby boomer population, it is one of the fastest growing sectors within the general life science industry. Cardiovascular disease is influenced by poor diet and nutrition, an inactive lifestyle, increased stress levels, genetics, and a number of other factors. As with all medical device markets, the Cardiovascular Equipment market is driven by the need for innovation tha is highly effective and less invasive while also being low cost. The market is dominated by large, multi-national corporations but also consists of numerous smaller, privately-held companies. Often times, it is these smaller companies that help fill the pipeline of the larger companies which, in turn, have the deeper pockets needed to bring the technologies to market. The American Heart Association estimates the cost of cardiovascular disease to be $448.5 billion for 2008.
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Orthopedic Device Industry
By: Daniel J. Rak Jr., Senior Associate
The Orthopedic Device industry encompasses a group of companies engaged in the research, design, production, and marketing of implantable devices, biologics, instruments, and equipment related to the treatment of orthopedic conditions. The four main product categories include: reconstructive joint replacements, spinal implants, orthobiologics, and trauma implants. With an aging U.S. population maintaining a more active lifestyle into their later years of life, orthopedic conditions are becoming more prevalent. Industry experts speculate that the demand for orthopedic devices is projected to increase at a rate of 8.9% annually through 2012, creating a $22 billion market.
The hallmark of companies in the orthopedic device industry is innovation, and with the industry in a growth phase, companies must continue to focus on product innovation in order to remain competitive. Drivers of successful product innovation include design, technology, and cost effectiveness. This can be seen with the evolving incorporation of biologics into orthopedic devices, the utilization of biologic and biocompatible materials, the creation of less invasive device implantation procedures, and the use of more durable materials leading to reduced long-term patient complications and effectively lowering costs for both patient and insurer.
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Drug Delivery
By: Sheri L. Trinchero, Vice President
The drug delivery segment of the pharmaceutical preparations industry is comprised of firms that research, develop, and process formulations or devices to deliver drugs or therapeutic agents. A drug delivery system manipulates the method by which a drug is administered but is not an actual drug or therapy on its own. The demand for innovative, cost-effective, and safe next generation compounds is growing. As the demand for new technology grows, drug delivery companies are well poised for growth because drug delivery technologies can improve the safety and efficacy of an existing commercialized product, extend the life of intellectual property through reformulation, lead to new indications for a therapeutic compound, and assist in other product portfolio development.
The drug delivery segment of the pharmaceutical preparations industry has grown rapidly in the United States over the past decade, with total revenue increasing from approximately $24 billion in 1997 to $80 billion at the end of 2007. Industry experts predict that over the next five years, demand for drug delivery systems in the United States will continue to increase by approximately 10% annually, reaching revenue of approximately $130 billion by the end of 2012.
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