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According to a new series of reports on the Asia-Pacific orthopedic biomaterials markets of Japan, China, India, Australia and South Korea by iData Research, government efforts to control ballooning healthcare costs in the region have led to declining prices as a result of intense tendering, reimbursement cuts and stricter manufacturing registration requirements. However, due to an increase in the standards of living in the region, these low prices have resulted in market growth.
The income per capita has increased significantly in China and India since the year 2000, allowing for better healthcare budgets. In fact, India has the highest number of people suffering from diabetes in the world, which could be related to osteoarthritis, and would therefore require treatment with orthopedic biologics in some cases. Using bone graft substitutes (BGS) adds to the cost of the procedure, especially if more expensive options such as growth factors are used.
“The high level of general wealth in Australia, Japan and South Korea has allowed for such premium products to remain affordable,” explains Dr. Kamran Zamanian, CEO of iData. “This makes it more likely for an average patient to afford treatment such as bone grafting, which involves extra charges to the primary therapy.”
In 2015, the Chinese market saw declines in both procedural growth rates and the average selling prices of orthopedic biomaterial products across all market segments. Japan is currently undergoing a biennial pricing review conducted by the country’s National Healthcare Insurance. As of 2015, seven reviews were completed with initial rounds reducing pricing by over 20%.
In India, while regulations are getting stricter as the size of the market increases, the registration and compliance in the country has remained accessible to manufacturers. However, the market potential in India is limited because the average patient is unable to afford treatments. Biologics are viewed as a non-essential/add-on cost in the case of bone graft substitutes where the primary therapy is already costly for an average patient.
The Australia and South Korea biologics markets are both in the mature stages of development. Both countries foresee rapid expansion of recently introduced high growth products such as single-shot products in the hyaluronic acid (HA) segment and enhanced synthetic and bone morphogenetic protein (BMP) products in the BGS segment. However, intensifying tendering as well as downward price revisions caused by regulatory mandates in certain parts of the market has resulted in a very low growth environment.
Medtronic was the largest competitor in the Australian biologics market in 2015 with its synthetic grafts MasterGraft® and Nanostim®, as well as its BMP-2 based INFUSE® product. However, DePuy Synthes led the demineralized bone matrix (DBM) market due to its new DBX® line of DBM products. Genzyme was the largest player in the Indian biologics market in 2015 with its Synvisc® and SynviscOne® HA products. Within the Indian BGS market specifically, DePuy Synthes was the clear leader in terms of sales with its synthetic-based ChronosOn® product portfolio.
The China, Japan and South Korea biologics markets are led by local companies due to higher barriers of entry for foreign competitors and significant financial and regulatory support from their respective governments. Foreign companies accounted for less than 3% of the biologics market in Japan and less than 15% in South Korea. The advancement in local technologies has also allowed room for exporting, with several local manufacturers clearing international standards such as the FDA in the United States. Two notable foreign players in China are Seikagaku from Japan and Wright Medical from the U.S., whose products occupy leads in the HA and DBM markets. Shin Poong was the largest player in the South Korean biologics market in 2015.
For Further Information
More on the Asia-Pacific orthopedic biomaterials market can be found in a report suite published by iData Research entitled the Asia-Pacific Market Report Suite for Orthopedic Biomaterials. The suite covers reports on the following markets: Bone Graft Substitutes, Hyaluronic Acid Viscosupplementation, and Orthopedic Growth Factors.
The global iData suite of reports on orthopedic biomaterials cover the U.S., China, India, Japan, South Korea, Australia, and 15 countries in Europe. 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 orthopedic biomaterials market data or procedure data, register online or email us at [email protected] for an Asia-Pacific 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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