According to the National Library of Medicine, back pain is one of the most prevalent medical conditions suffered by Americans. At any point in time, almost 30 million Americans are afflicted by lower back pain, while an estimated 85% of the population will experience back problems at some point in their life. While these numbers are staggering, approximately 90% of patients experience relief from most symptoms within 3 months through exercise, pain management, external support and other non-invasive therapies. The remaining 5-10% of individuals suffer from disabling conditions which may ultimately lead to surgery; estimates place the number of Americans suffering from disabling back pain at any given time at approximately 3 million. The direct medical costs associated with these conditions exceed $60 billion annually.
Spine treatments have historically focused on reducing pain and/or fixing structural damage. Fusion has long remained the standard of care for back/neck pain, representing 85% of procedures, and 78% of implant sales in 2006. In an effort to expand the marketplace and improve patient care, companies are focusing on new non-traditional treatments, including non-fusion therapies, minimally invasive, and percutaneous procedures. These new treatments address back pain earlier in the continuum of care, expanding the overall patient base that may consider surgery as a pain relief alternative.
The orthopedic market, especially the spine segment, is currently experiencing several favorable trends that are driving the demand for innovative product offerings and will continue to fuel future growth.
Advances in Technology – New products and materials are being developed that are improving the rate of surgical success and expanding the patient population.
Percutaneous Surgery – Percutaneous Surgery utilizes special instruments that make smaller incisions, consequently resulting in less tissue damage compared to “open” or minimally invasive procedures. Percutaneous procedures result in far shorter hospital stays, quicker recovery times, lower costs and improved patient satisfaction. These advantages over “open” and minimally invasive surgery will spur surgeons to recommend surgery where, in the past, conservative therapy may have been advised or traditional procedures pursued.
Return to Work Requirements – As workers and employers share the cost of family health insurance the need to work and the terms of policies written will continue to underwrite treatment for disabilities that enable a rapid return to a productive life, with the least amount of rehabilitation time and expense possible. Chronic back pain is one of the most often cited reasons for work related disability claims and the payment of workman's compensation benefits. As a result, new approaches to back surgery to treat chronic pain earlier in the continuum of care in least invasive ways will be desired by patients and adopted by surgeons and institutions.
Active Lifestyles & Obesity – Paradoxically, the US and many other industrialized nations are experiencing an increase in the number of its society that are living active lifestyles later in life and also experiencing an epidemic of obesity. Both populations are contributing to the increase in the number of spine related doctor visits that has resulted in an increase in the number of spinal surgeries.
Same Day Surgery/Shortened Hospital Stay – Two improvements in patient care are related to percutaneous interventions: 1. Anesthesia can be localized for some surgery patients eliminating the need for general anesthesia, and 2. post procedure patient ambulation can be almost immediate in some cases. Both support same day surgery or limited stays in hospital, with associated cost reductions and lowered rates of infection for patients. These market drivers will spur surgeon training in percutaneous techniques and the numbers of centers offering these advances.
Aging Industrial Populations – According to U.S. Census data, the U.S. population is expected to grow approximately 5% from 2006 to 2010, while the number of people over the age of 55 is projected to grow approximately 14% during the same period. As this segment is particularly susceptible to osteoporosis, the aging of the U.S. population will have a real impact on demand for improved spinal treatment. The aging European and Japanese populations should increase both their adoption and consumption of medical devices. Being the major global supplier of medical devices, U.S. medical device companies should greatly benefit from this expanding marketplace.
As surgeons continue efforts to treat back pain and increase patient satisfaction, the market for spinal implants has evolved to become the fastest growing and most profitable segment of the orthopedic device industry. In 2007, experts predict the spinal implant market will generate worldwide revenue in excess of $6.6 billion, representing growth of 12.0% over 2006. As a result of the aforementioned growth drivers, the market is expected to expand to over $15.6 billion by 2015, representing a compound annual growth rate (“CAGR”) of 11.5% over the 10-year period.
