The medical device market should see significant growth over the next few years as a result of emerging markets, an aging population, and increased acquisitions. These are the latest findings of Kalorama Information (New York, NY, USA), an independent market research firm.

Medical device companies saw growth in 2010 despite a slow economy and pressure on pricing, and that growth should continue for the next few years, according to report. Bellwether medical device companies grew at an average of 6% in 2010, on the higher side of most growth estimates a year ago, and Kalorama Information predict that the US$305 billion medical device market should see growth continue in that range over the next few years. Many market leaders chose 2010 to make strategic moves, by either divesting unprofitable areas or acquiring areas that were in line with strategic goals, and where cross-selling opportunities were present.

The medical device market, however, was not without challenges during these moves, including regulatory procedures, group-purchasing negotiations, and a new tax that was introduced as part of US healthcare reform. However, the report pointed to a robust amount of merger and acquisition activity in the market as an indication that the medical device industry is optimistic about the future. Among the acquisitions that occurred during 2010 was the acquisition of endovascular company ev3 (Plymouth, MN, USA) by Covidien (Dublin, Ireland) for $2.6 billion. Orthopedic giant Stryker (Kalamazoo, MI, USA) purchased the neurovascular unit of Boston Scientific, and Baxter Healthcare assumed bone graft maker Apatech (Deerfield, IL, USA). Medtronic acquired several companies, including spinal neuromodulation products manufacturer Axon Systems, heart valve maker ATS Medical and Invatec, a producer of stents.

"It's a healthy sign that so many of the top companies chose 2010 to make strategic moves," said report author Bruce Carlson, publisher of Kalorama Information. "In some categories, such as orthopedics or respiratory, it's simple demographics and improved economics in the developed world that led to growth. For most companies, double-digit growth in orders to India, China, Brazil, and other nations fueled revenues."
 

Guangzhou Jia Yu medical equipment Limited