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Medical Device Makers Battle
Out In Implantable Systems Market
Medical device makers are
battling in the fast-growing market for implantable systems that manage
debilitating pain in patients for whom medical alternatives, such as drugs or
spine surgery have failed.
The devices, about the size of a
pager, are typically, implanted in the abdomen or buttocks and block the
sensation of pain by sending electricity via an insulated wire to the spinal
cord.
Medtronic, Boston Scientific and
Advanced Neuromodulation Systems all have recently launched products that
improve on earlier models because their rechargeable batteries mean that a
patient can go longer before replacement surgery is needed, in some cases as
long as seven to nine years.
The latest generation of devices
also allow patients, using a remote control programmed by the physician, to have
more control over how much and when the pain-blocking electrical pulses are
delivered.
Medtronic, which pioneered pain
management technology a decade ago, remains the largest competitor in the sector
but has conceded some ground as rivals stepped up production of rechargeable
devices in recent quarters.
"We continue to be the market
leader, but we didn't have competition before, so obviously we have lost some
(share)," said Jake Vander Zanden, Medtronic's General Manager of pain
management.
The stakes are high. Sales of the
stimulation devices now top $500 million and could exceed $ one billion in a few
years, company executives said.
The segment's smallest player,
Advanced Neuromodulation products, saw sales of its neuromodulation products,
including spinal cord stimulation systems, leap 26 percent in the second quarter
when it rolled out its rechargeable Eon pain device.
The Dallas based company said it
would boost manufacturing capacity after early sales of the product
significantly exceeded expectations.
Boston Scientific believes its
rechargeable spinal cord stimulation device, called Precision, launched in
April, is also taking market share from Medtronic, said Jeff Greiner, President
and Co-Chief executive officer of the company's Advanced Bionics unit.
"When you have a monopolist that
dominates the field for many years, there is an underlying feeling that
competition is good for patients," Greiner said.
Analysts said that a shortcoming
of Medtronic's Restore product is that it lacks technology that would allow it
to be used as a replacement device for patients who need an older model removed,
but the wires leading to the spine kept in place.
"I think Boston Scientific and
ANSI have the better technology now, especially with the rechargeable," said
Jeff Jonas, analyst with Gabelli Asset Management, which owns less than one
percent of Medtronic's shares.
Vander Zanden said that Medtronic
offers the widest range of pain management devices on the market and said the
company is working on two products, and extension and an adapter, that will help
solve the replacement issue.
The extension product is expected
to receive regulatory approval any day allowing the company to batter compete in
the replacement market, which he estimated at 10 to 30 percent of all
procedures. He said that the adapter is in the design phase.
The three rivals also are
studying a host of potential new applications for devices in hopes of eventually
adapting the technology to treat conditions such as migraine headache.
(Ref : Express Pharma Pulse
September 22, 2005)
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