will the u.s. implantable defibrillator market recover?
TRANSCRIPT
Will the Will the U.S. Implantable U.S. Implantable Defibrillator Market Defibrillator Market Recover?Recover?
Brahadeesh Chandrasekaran, Research Analyst
Venkat Rajan, Industry ManagerVenkat Rajan, Industry Manager
Healthcare
13 June 2012
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Today’s Presenters
Brahadeesh Chandrasekaran,
Research Analyst- Healthcare
Europe
2
Venkat Rajan
Industry Manager-
Advanced Medical Technologies
North America
Agenda
� U.S. Market Rebound?
� Market Dynamics
� ICD Market SWOT
� Impact of New Technologies
� Importance of Emerging Markets
3
Key Market Trends
• Market Stabilizing
• Recall Issues Persist
Implantable
Market Stabalizing
Recall Issues Persist Price Pressures
New Product Launches
4
Implantable Defibrilator
Technologies
Recall Issues Persist
Evidence Based Use Considerations
Changing Healthcare Landscape
Price Pressures
Source Frost & Sullivan
U.S. ICD Market Dynamics- Rebound?
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
Implantable Defibrillator Market- Growth Rate: United States, 2008-2016
5
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
Source Frost & Sullivan
U.S. ICD Market Dynamics (continued)
Implantable Defibrillator Market- Conventional ICD vs CRT-D Revenue Share: United States, 2007-2016
50%
60%
70%
80%
90%
100%
6
0%
10%
20%
30%
40%
50%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
CRT-D Conventional ICD (one and two lead)
Source Frost & Sullivan
ICD Market- Dynamic SWOT
Strengths Weaknesses
pp
ort
un
itie
s
ATTACK Strategies:
• Focus on 3rd Generation
REINFORCE Strategies:
• Disciplined Portfolio
Key Growth Strategies from SWOT Model
• New Technologies
• Patient Demographics
• Last line of Defense
• Pricing Caps• Market Saturation
7
Op
po
rtu
nit
ies
Th
reats
DEVELOP Strategies:
• Tiered Product Portfolio
• Adaptable Design Platform
• Focus on 3rd Generation Capabilities
• Low Cost Devices
• Disciplined Portfolio Management
• Emerging Market Focus
AVOID Strategies:
• Low Value Add Features
• Fast Follower Mentality
• Expansion of Addressable Patient
Population
• Recalls
• Alternate Treatments
Source: Frost & Sullivan.Source Frost & Sullivan
Impact of New Technologies
Quadripolar CRT-D
• Has the potential to expand treatment
options for patients non-responsive to
current CRT therapy
• St.Jude Medical’s Quadra approved
in late 2011 by FDA
• Buzz relatively positive
• Concerns:
• More clinical evidence required
Addressable Patient Population
Quadripolar CRT-D
8
• Satisfaction with bi-polar leadsS-ICD
S-ICD
• Cameron Health acquired by Boston
Scientific in March 2012
• Received a 7-1 FDA advisory panel
approval in March
• Targeting low arrythmia burden
patients
• Reduced lead infection risk
• Concerns: Painless ATP
Emerging Markets Strategy Key to Long Term Growth
Established Markets Slowdown Emerging Markets Underserved
• U.S., Western Europe, and Japan
combine for 89% of total implant volume
• Long term growth rate expectated to be
flat to single digits
• Unique strategies necessary for India,
China, and Latin America
• Medtronic CEO commented that prices
in underserved markets might need to be
five to ten times cheaper than current
high-end products
• Regional competition from local players
a competitive concern (ex: in India Shree
9
a competitive concern (ex: in India Shree
Pacetronix and Medived)
United States
59%
W. Europe
28%
Japan
2%
ROW
11%
Implantable Defibrillator Unit Implant Share: Global, 2011Source Frost & Sullivan
Next Steps
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For Additional Information
Janique Morvan
Corporate Communications
Healthcare
+ 33 (0) 679 22 4142
Venkat Rajan
Industry Manager
Medical Devices
(210) 247-2427
13
Sowmya Rajagopalan
Program Manager
Medical Device Industry
(+91-44) 6681-4196
Brahadeesh Chandrasekaran
Research Associate
Medical Device Industry
(+91-44) 6681-4193