02/07/2012 -- TORONTO--(BUSINESS WIRE)-- According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, the highly fragmented European orthopedic biomaterials market will see fierce competition in an environment of reduced reimbursement and limited hospital budgets. More than 70 companies offer orthopedic biomaterials products in the $350 million European market.

All segments of the European orthopedic biomaterials market have many local and multinational companies vying for market share. In 2011, not a single competitor held more than 25 percent of the European market in any category. As a result, companies have put significant efforts into maintaining or gaining market share, including marketing efforts to increase brand awareness among patients and physicians, conducting clinical trials to demonstrate product efficacy and safety and increasing the range of products offered in order to cater to varied physician preferences. They have also been providing product bundling and volume discounts to appeal to cost-conscious physicians, facilities and patients.

The effect of the European debt crisis places an additional burden on this market. The resulting reduced reimbursement and more limited hospital spending will increase the downward pricing pressure resulting from strong competition. As a result of the cuts, many public hospitals across Europe will be limiting access to elective and nonessential procedures to save money, including hyaluronic acid (HA) viscosupplementation and knee cartilage repair procedures, and cutting the use of premium-priced products, such as bone morphogenetic proteins (BMPs) in the bone graft substitute market. In response, suppliers are becoming increasingly effective at directing their sales strategies to the private healthcare market by working closely with individual physicians, providing incentives through bundling options and discounts and working to raise patient awareness and demand.

“Despite the economic constraints, we will still see continued marketing efforts by companies, as well as the launch of some new products,” said MRG Analyst Jennifer Smith. “In the bone graft substitute segment, Medtronic Spinal & Biologics will continue to strongly promote their BMP product, INFUSE, due to its high success rate, while Olympus Biotech’s Opgenra (formerly Stryker’s product), Cerapedics’ i-FACTOR Flex and BioMimetic Therapeutics’ Augment growth factor have either launched or will soon.”

In reference to the HA viscosupplementation market, MRG Analyst Lexie Code said that “the adoption of premium-priced 1-injection products will continue to be a key market driver through 2016.”

Competitors in the European orthopedic biomaterials market include Biomet, Fidia Farmaceutici, Genzyme Biosurgery (acquired by Sanofi), Stryker, TRB Chemedica, Q-Med, Rottapharm|Madaus, Medtronic Spinal & Biologics, Laboratoires Genévrier, RTI Biologics, Synthes, Geistlich, Olympus, and Bioniche Pharma, among many others.

Millennium Research Group’s European Markets for Orthopedic Biomaterials 2012 report includes procedure, unit, average selling price and revenue information, along with market drivers and limiters and competitive landscape for bone graft substitutes, HA viscosupplementation and knee cartilage repair in France, Germany, Italy, Spain and the United Kingdom.

About Millennium Research Group

Millennium Research Group (www.MRG.net), a Decision Resources Group company (www.DecisionResourcesGroup.com), is the global authority on medical technology market intelligence and the leading provider of strategic information to the healthcare sector. The company provides specialized industry expertise through multiclient market research, ongoing Marketrack™ projects, customer loyalty tracking, facility-level procedure forecasting, and customized solutions.

About Decision Resources Group

Decision Resources Group is a cohesive portfolio of companies that offers best-in-class, high-value information, and insights on important sectors of the healthcare industry. Clients rely on this analysis and data to make informed decisions. Please visit Decision Resources Group at www.DecisionResourcesGroup.com.

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Source: Millennium Research Group

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