Medtech Startups, 2010-2015

From 2010 to present (Oct 2015), as included in the Medtech Startups Database, MedMarket Diligence identified 442 new (under one year old) medical technology startups whose businesses encompass, alone or in combination, medical devices, diagnostics, biomaterials, and the subset of both biotech and pharma that is in direct competition with medical devices, including tissue engineering and cell therapy. Of these, 74% were founded in the U.S., 5% were founded in Israel, and the rest were founded in 18 other countries.

Companies in the database have been categorized by clinical and/or technology area of focus, with multiple categories possible (e.g., minimally invasive and orthomusculoskeletal and surgery). Below is the composition of the companies identified from Jan. 2010 to Oct. 2015.

Screen Shot 2015-10-06 at 4.50.10 PM

Source: Medtech Startups Database

Below is a graphic on the companies by country. The U.S. (not shown) led with 327 companies.

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Source: Medtech Startups Database

In the U.S., the breakdown by state, other than California and its 466 companies (excluded only to show states with significantly lower numbers), is as follows:

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Source: Medtech Startups Database

 

Coverage in 2015 global spine surgery technology report

The MedMarket Diligence report, “Global Market For Medical Device Technologies in Spine Surgery, 2014-2021” (link), is a detailed market and technology assessment and forecast of the products and technologies in the management of diseases and disorders of the spine. The report describes the diseases and disorders of the spine, characterizing the patient populations, their current clinical management, and trends in clinical management as new techniques and technologies are expected to be developed and emerge. The report details the currently available products and technologies, and the manufacturers offering them. The report details the products and technologies under development and markets for each in spine surgery. The report provides the current and forecast market to 2021, by region/country, of procedures and manufacturer revenues.

Technologies covered:

  • Cervical implants
  • Thoracolumbar implants
  • Minimally invasive implants
  • Non-fusion implants
  • Orthobiologics

Geographic market detail:

  • North America — United States, Canada
  • Europe — Germany, France, Spain, Italy, United Kingdom
  • Asia/Pacific — Japan, India, China
  • Central and Latin America
  • Rest of World

Selected (published report includes over 100 companies) list of companies included in the report:

  • Accel Spine
  • Advanced Spine Fixation Systems Inc
  • Aesculap
  • Alphatec Spine (Scient’x Groupe S.A.)
  • Apollo
  • Argomedical AG
  • Baumer S.A.
  • Beijing Montagne Medical Device Co.
  • Biedermann Motech GmbH & Co. KG
  • Biomatlante
  • Biotech GmbH
  • Biotechni
  • BIOTEK – Chetan Meditech Pvt. Ltd
  • Bonovo Orthopedics Inc
  • coLigne AG
  • DePuy Synthes
  • Dieter Marquardt Medizintechnik GmbH
  • ESKA Implants AG
  • Exactech Spine
  • Gerraspine AG
  • Globus Medical
  • Graftys
  • Integra LifeSciences
  • Japan Medical Dynamic Marketing (MDM) INC
  • K2M
  • Kyocera Medical Corporation
  • LDR Medical
  • Medicrea
  • Medtronic Spinal and Biologics
  • Medyssey Spine Ltd (Zimmer)
  • Nakashima Medical Co. Ltd
  • Norer Medical Group (Xinrong Best Medical Instrument Co. Limited)
  • NuVasive
  • Onur MEDiKAL San. Ve Tic Ltd. Sti.
  • Orthopaedic & Spine Development
  • Osteotech
  • Seohancare co. ltd
  • Solco Biomedical
  • Sozhou Kangli
  • Spineart
  • Spinelab Ltd.
  • Stryker Spine
  • Surgival-Grupo Cosias
  • Ulrich GmbH & Co.KG
  • Wright Medical Technology
  • Zimmer Biomet

For complete details on this report, including ordering online, see link.

The Future (Ours) is in China for Medtech

The importance of China in the global economy became apparent this week, with the ups and downs of its economic state tripping the hair trigger that financial markets have for the huge nation’s growth market.

But in hard terms, what does that mean? As an example, look at spine surgery technology and compare the forecasted growth in sales in China not against the much lower U.S. market but against other high-growth Asia-Pacific markets such as India and Japan. Below is the balance of spine surgery technology sales (encompassing cervical fusion, thoracolumbar implants, minimally invasive spinal fusion, interbody fusion, and orthobiologics) for 2014 and forecasted for 2021 for China, India, and Japan.

Spine Surgery Sales by Country, 2014 & 2021

Screen Shot 2015-09-02 at 2.15.28 PM

Source: MedMarket Diligence, LLC; Report #M540

The relative growth of the market in China is apparent in the change of pie slice sizes, but in hard numbers, Japan’s annual sales in 2021 will be $243 million higher than they were in 2014, but by comparison, China’s 2021 spine surgery sales will be $536 million higher than in 2014.

It is evident that China has made great advances in the quality and quantity of research work and in the development of its medical industry and the provision of healthcare in China. According to the International Monetary Fund, the gross domestic product of China was over $8,230 billion in 2012, making China’s economy the second largest economy in the world. China’s life sciences markets have shown particularly aggressive growth in absolute terms, with sales of the country’s reagents and analytical laboratory instruments showing annual growth in the 15% to 20% range. The Chinese pharmaceutical market is growing at 13.1% through 2020 (Source: McKinsey) and projected growth in the in vitro diagnostics market in China is at 10%.

The overall size and growth in China’s medtech market, including spine surgery, demands a business strategy to gain sales there, since no other market worldwide is expected to drive so much new revenue.

 

 

Absolute and Relative Growth in Wound Closure Product Sales Worldwide

(See the 2016 published report #S290, “Sealants, Glues, Hemostats, 2016-2022”.)

Medtech manufacturers interested in “growth” markets need to consider the relative versus absolute. Nascent markets can growth from $1 million sales in year 1 to $2 million in year 2, obviously a 100% increase. But in multi-billion markets, a $1 million increase will elicit a yawn from all but the smallest manufacturers.

Just as an exercise, I ranked the growth rates for sales of wound closure products detailed in our Report #S192 by both the absolute sales growth from 2014 to 2018 and the compound annual growth rate over this period. To reveal the differences even further, I ranked all combinations of geographic area and wound closure product type. Partial results — just the top growth rankings, since the list is too long to show all — are shown side by side below (click on the chart to see a more legible version).

Wound Closure Sales Growth, Absolute and Relative, 2014-2018

Screen Shot 2015-05-25 at 9.40.11 AM

Source: “Worldwide Surgical Sealants, Glues, and Wound Closure Markets, 2013-2018”, Report #S192.

Even though tapes, sutures and staples have very modest growth rates in many geographic markets, their current dollar volume sales make such growth much more significant in absolute terms.

 

(See the 2016 published report #S290, “Sealants, Glues, Hemostats, 2016-2022”.)

Surgical Sealants: Advanced Technologies in Well Developed Markets

Advanced technologies are frequently developed in well developed economies, then migrate to other economies over time. Consequently, relatively new technologies tend to be more dominant in the well developed economies while relatively old technologies tend to be more dominant in the developing economies.

Case in point, surgical sealants for wound management versus surgical tapes, the former relatively new (and advanced) and the latter relatively old.

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Source: MedMarket Diligence, LLC; Report #S192

Surgical Sealants and Glues Sales Growth

Aside from demonstrating clinical utility in wound sealing and closure on their own, sealants and glues are emerging as important adjunctive tools for sealing staple and suture lines, and some of these products also are being employed as general hemostatic agents to control bleeding in the surgical field. Manufacturers have also developed surgical sealants and glues that are designed for specific procedures – particularly those in which staples and sutures are difficult to employ or where additional reinforcement of the internal suture/staple line provides an important safety advantage.

Sales of surgical sealants and glues have become as common in some surgical procedures as sutures and staples in well developed markets (U.S., Europe and Japan), but their use continues to expand in both stand alone and adjunctive use with other wound closure. Emerging markets, especially in Asia will drive nearly double these growth rates. All told, the global surgical sealants and glues market will eclipse $2 billion by 2018 on compound annual growth of 9.4%.

Screen Shot 2015-01-27 at 2.45.11 PMSource: MedMarket Diligence, LLC; Report #S192.

 

Technology Migration in Global Wound Closure Markets

Drawn from our recent report on the global market for wound closure products, Report #S192, the distribution of the technologies on the market now, and in the future, for wound closure encompassing sutures & staples, tapes, hemostats, sealants & glues and vascular closure devices reveals the continued migration of advanced technologies (vascular closure, hemostats, glues & sealants) from western economies to the developing markets. Simultaneously, the more well established technologies (tapes, sutures & staples) are showing modest growth in western economies and robust growth in developing economies.

Below are illustrated the percentage of total worldwide market for each wound closure technology type by country/region.

Screen Shot 2014-11-10 at 10.29.31 AM

Source: MedMarket Diligence, LLC; Report #S192

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Source: MedMarket Diligence, LLC; Report #S192

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Source: MedMarket Diligence, LLC; Report #S192

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Source: MedMarket Diligence, LLC; Report #S192

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Source: MedMarket Diligence, LLC; Report #S192

Country and regional forecasts for surgical sealants and glues, 2013-2018

The largest current and future market for surgical sealants and glues (at least through 2018) remains the U.S. by a fairly wide margin. Second to the U.S. is the aggregate of all Asia/Pacific countries (excluding Japan and Korea), followed by Japan (the second largest single country market for sealants & glues) and then Germany. Below is the 2013 to 2018 forecast of surgical sealants and glues, by country/region, sorted by current market size.
Screen Shot 2014-10-29 at 11.35.10 AM

Source: MedMarket Diligence, LLC; Report #S192

The U.S., Japan and Germany are well developed markets for medtech products like surgical sealants and glues; hence, their large current total sales. However, faster rates of adoption are taking place in markets that have accordingly not been penetrated to the same degree, and this becomes particularly significant for the very large current markets of the Asia/Pacific region (India and China in particular). Below is illustrated the compound annual growth rate (2013-2018) for sales of surgical sealants and glues by country/region, sorted in order of growth.

Screen Shot 2014-10-29 at 11.52.53 AM

Source: MedMarket Diligence, LLC; Report #S192

Growth and Change in $14 Billion 2018 Global Market for Sealants, Glues, and Wound Closure – New MedMarket Diligence Report

The market for products to stop bleeding, close wounds, seal wounds and ultimately optimize wound healing is a diverse and dynamic arena filled with over a hundred companies — from startups to multinational powerhouses – vying for a large caseload of acute surgical wounds. MedMarket Diligence has completed a global analysis of the products, technologies markets for surgical sealants, high strength and other glues, hemostats, tapes, vascular closure devices and other wound closure products.

The global market for sutures & staples, vascular closure devices, surgical tapes, medical and surgical hemostats and surgical sealants and glues will grow to $14 billion by 2018. Traditional methods to close and secure wounds via suture are under a steady barrage of new technologies that have gained credibility among clinicians, widespread acceptance by third party payers and a resulting caseload that is poised to gain over half the global market, according to a new report from MedMarket Diligence.

“Traditional wound closure via suture represents a fundamental skill in clinical practice, and the ease of its performance, strength of the closed wound and long presence in wound management make it a tough market to penetrate, but that is just what has happened over the past couple decades,” says Patrick Driscoll, President of MedMarket Diligence, LLC.

Fibrin sealants came on the scene, mostly outside the U.S. in the early 1990s, demonstrating the ability to effect better closure and minimize blood loss. With protocols and other reassurances that these blood-derived products would not risk HIV transmission, the U.S. market opened up as well. Subsequently, an enormous array of biologically- and chemically-based products began seriously disrupting the hundreds of years of dominance by surgical sutures. Adding to wound closure were the products demonstrating rapid hemostasis, hitting suture limitations head-on. With low hurdles to enter the market, companies proliferated and began carving up large swaths of the wound closure market. However, surgery evolved, with laparoscopic and other endoscopic procedures giving impetus to advanced sutures, clips and staples delivered endoscopically. Moreover, suture technologies also evolved, with the development of different resorbable sutures adding a level of utility and value to sutures, further buttressing their defense against the emerging novel wound closure products.

Technologies in wound closure continue to evolve and be adopted globally. The end result is that there is steady emergence and turnover (via acquisition and exits) of companies in the market.

The 2014 MedMarket Diligence report, “Worldwide Surgical Sealants, Glues, and Wound Closure Markets, 2013-2018”, covers the markets for Surgical Wound Closure products, including Sutures and Staples, Vascular Closure Devices, Medical Tape, Surgical Hemostats, and Surgical Sealants and Glues. It takes into consideration those products which are used in hospitals, medical clinics and physicians’ offices. It does not address consumer, dental or veterinary markets, nor does it include medical adhesives used in manufacturing devices intended to be used for medical applications.

The report provides specific forecasts and shares of the worldwide market by segment for Americas (detail for U.S., Rest of North America and Latin America), Europe (detail for United Kingdom, German, France, Italy, Spain, Rest of Europe), Asia/Pacific (detail for Japan, Korea, Rest of Asia/Pacific) and Rest of World.

The report also provides background data on the surgical, disease and traumatic wound patient populations targeted by current technologies and those under development, and the current clinical practices in the management of these patients, including the dynamics among the various clinical specialties or subspecialties vying for patient population and facilitating or limiting the growth of technologies.

The report establishes the current worldwide market size for major technology segments as a baseline for and projecting growth in the market through 2018. The report also assesses and projects the composition of the market as technologies gain or lose relative market performance over this period.

The report profiles the top companies by revenue and a reasonable selection of the most promising or otherwise noteworthy companies in the markets covered in this report, providing data on their current products, current market position and products under development.

The report is described in detail at link and may be ordered for immediate download from link.

Rising and fading technologies in the global market for wound closure

Technologies emerge, gain clinical acceptance, grow in caseload and become the standard of care. Then new technologies emerge, developed to improve on or eclipse established technologies. They gain acceptance and the cycle continues.

The pace of technology and market development in the products used in wound closure — sealants, glues, hemostats, sutures/staples, tape, and vascular closure devices — follow this path as characteristically as any medtech market. However, the pace of adoption varies both by technology type and geographic location. Consequently, there is a pretty wide range of compound annual growth rates in the sales of these product globally, regionally and by country.

Below illustrates the highest growth segment-geography combinations in the wound closure market. This frequently illustrates that novel technologies more rapidly penetrate well developed economies, which can sustain the initial high premium pricing of novel technologies, then progressively migrate to less well developed economies.  (For the sake of direct comparison, the high and low growth graphics are shown on the same scale.)

High Growth Segment-Geographies in Wound Closure

Screen Shot 2014-10-23 at 2.07.43 PMSource: MedMarket Diligence, LLC; Report #S192.

Low Growth Segment-Geographies in Wound Closure

Screen Shot 2014-10-23 at 2.07.52 PMSource: MedMarket Diligence, LLC; Report #S192.