ChronOs tricalcium phosphate DePuy Synthes

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According to a new series of reports on the Australian orthopedic biomaterials market by iData Research, the largest biomaterials market in Australia is for bone graft substitutes (BGS), valued at over $21 million. This market consists of three sub-segments all possessing different market drivers. For example, the allograft sub-segment is largely a not-for-profit driven marketplace with low but stable prices. Limited supply of raw materials restricts the output capability of the allograft sub-segment. Meanwhile, the synthetic sub-segment is a crowded field with more than two dozen products. There is also strong downward pressure on the average selling price (ASP) caused by both market forces and regulatory intervention.

Synthetics is the most frequently used material within the Australian orthopedic bone graft market, comprising over 44% of all procedures in the country. Although the Therapeutic Goods Administration (TGA), the FDA equivalent in Australia, has stringent requirements for all BGSs, it is much easier to register synthetic products compared to human-tissue derived products. This explains the prevalence of synthetic use in Australia. Overall, the total number of procedures is expected to grow by 2022.

Historically, the pricing in Australia has been in decline due to periodic price cuts by regulatory bodies. This is due, in part, to the market starting with significantly higher pricing compared to other countries across the globe. Although the reimbursement amounts for key products were stable in the period of 2012 to 2015, there was significant price reduction in 2012 of over 20% for some products. Meanwhile, future cuts are possible as the prices in 2015 were still relatively high. Also, while pricing is generally stable year-to-year in the private insurance part of the market, which is the major determinant of the overall pricing in Australia, there is additional pricing pressure from public tendering.

There had been an acceleration in the overall growth rate of procedures and average selling prices between 2012 and 2014, driven by the introduction and rapid commercial expansion of the first for-profit demineralized bone matrix (DBM) product. This shows that while the market is mature, there are high-growth opportunities to be found in introducing new product types to Australia.

“The Australian BGS market is almost exclusively occupied by multinational companies, with a few prominent local distributers,” explains Dr. Kamran Zamanian, CEO of iData. “Although the top two players control nearly 50% of the market, there are more than a dozen companies competing in this market, primarily within the synthetic segment.”

DePuy Synthes, the leading competitor in the Australian BGS market, is known for its tricalcium phosphate (β-TCP) based ChronOs® portfolio and Norian®, which serve the synthetic segment. They also introduced the first commercial DBM product in Australia marketed as DBX®. Given the particularly stringent regulatory pathway for human-tissue derived products and size of the Australian market, no other commercial DBM products are expected in the near future. DePuy Synthes was also the only commercial company involved with allograft in Australia, marketing cancellous bone chips and granules.

Stryker, the second leading competitor in the market is known for its β-TCP-based Vitoss® and HAP-based HydroSet® synthetic products, which together make Stryker the largest player in the synthetic segment. According to Stryker, Vitoss® is one of the most popular synthetic bone graft solutions, with 425,000 implantations worldwide. Additional competitors in the Australian bone graft substitute market include publicly owned bone banks, Zimmer Biomet, Global Orthopaedic, Medtronic, Baxter, and Wright Medical among others.

For Further Information
More on the bone graft substitute market in Australia can be found in a series of reports published by iData Research entitled the Australian Market Report Suite for Orthopedic Biomaterials. The suite covers reports on the following markets: Bone Graft Substitutes, Hyaluronic Acid Viscosupplementations, and Orthopedic Growth Factors.

The iData report series on orthopedic biomaterials covers U.S., Japan, South Korea, Australia, India, and 15 countries in Europe including Germany, France, the United Kingdom (U.K.), Italy, Spain, Benelux (Belgium, Netherlands and Luxemburg), Scandinavia (Finland, Denmark, Sweden and Norway), Portugal, Austria and Switzerland. Reports provide a comprehensive analysis including units sold, procedure numbers, market value, forecasts, as well as detailed competitive market shares and analysis of major players’ success strategies in each market and segment. To find out more about Australian bone graft substitute market data or procedure data, register online or email us at [email protected] for a Australian Market Report Suite for Orthopedic Biomaterials brochure and synopsis.

About Procedure Tracker
Procedure number data is available from iData’s Procedure Tracker service, which allows subscribers to define and analyze procedure data segmented by state, region, hospital, surgery centre, and physician. A customizable dashboard sorts procedure data for further analysis and research.

About Reimbursement Tracker
iData Research’s Reimbursement Policy Tracker enables medical device, dental, pharmaceutical and healthcare professionals to receive real-time policy updates from hundreds of insurance companies and 60,000+ policies across all therapeutic areas in the United States.

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