04.21.15
The U.S. neurological device market, which has seen several global manufacturers snapping up smaller companies that make neuromodulation devices, is expected to grow by $5 billion over the next five years, a research firm predicts.
That growth likely will come about as a result of an increase in neurological procedures, wider acceptance of neuromodulation, and the development of more advanced technology, notably in the neuromodulation category, according to a new report from iData Research, a Canadian medical device research firm.
Neuromodulation devices include spinal cord stimulators and deep brain stimulators. Stimulators can be used to treat neurological disorders such as Parkinson's disease and tremors.
The market leader in three of the five neuromodulation markets is Medtronic plc, according to iData Research. Last August, the Minneapolis, Minn.-based device behemoth said it would acquire Sapiens Steering Brain Stimulation, a privately held company based in Eindhoven, Netherlands, that is developing deep-brain stimulation technologies.
Neurological products traditionally have made up smaller revenue segments for large devicemakers. However, as more commonly used implantable products such as pacemakers and hip implants face pricing pressure from hospitals, devicemakers are looking for new ways to buy and develop innovative technologies that can help maintain their margins.
Other companies with neuromodulation portfolios include Boston Scientific Corp., St. Jude Medical Inc. and Cyberonics Inc. St. Jude Medical, based in St. Paul, Minn., also announced a neuromodulation deal last year, scooping up radiofrequency ablation device manufacturer NeuroTherm for $200 million.
Medtronic said revenue in the neuromodulation segment grew 7 percent to $972 million in the first half of its fiscal 2015, which ended Oct. 24, 2014, compared with the $907 million it reported in the first six months of fiscal 2014.
Boston Scientific also reported about 7 percent growth in neuromodulation revenue in the first half of its fiscal year, while St. Jude saw flat sales of neuromodulation devices in the first nine months of 2014.
That growth likely will come about as a result of an increase in neurological procedures, wider acceptance of neuromodulation, and the development of more advanced technology, notably in the neuromodulation category, according to a new report from iData Research, a Canadian medical device research firm.
Neuromodulation devices include spinal cord stimulators and deep brain stimulators. Stimulators can be used to treat neurological disorders such as Parkinson's disease and tremors.
The market leader in three of the five neuromodulation markets is Medtronic plc, according to iData Research. Last August, the Minneapolis, Minn.-based device behemoth said it would acquire Sapiens Steering Brain Stimulation, a privately held company based in Eindhoven, Netherlands, that is developing deep-brain stimulation technologies.
Neurological products traditionally have made up smaller revenue segments for large devicemakers. However, as more commonly used implantable products such as pacemakers and hip implants face pricing pressure from hospitals, devicemakers are looking for new ways to buy and develop innovative technologies that can help maintain their margins.
Other companies with neuromodulation portfolios include Boston Scientific Corp., St. Jude Medical Inc. and Cyberonics Inc. St. Jude Medical, based in St. Paul, Minn., also announced a neuromodulation deal last year, scooping up radiofrequency ablation device manufacturer NeuroTherm for $200 million.
Medtronic said revenue in the neuromodulation segment grew 7 percent to $972 million in the first half of its fiscal 2015, which ended Oct. 24, 2014, compared with the $907 million it reported in the first six months of fiscal 2014.
Boston Scientific also reported about 7 percent growth in neuromodulation revenue in the first half of its fiscal year, while St. Jude saw flat sales of neuromodulation devices in the first nine months of 2014.