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October 30, 2003

US Implantable Medical Device Demand to Exceed $24 Billion in 2007

From: Market Wire (press release) - Oct 30, 2003

CLEVELAND, OH -- (MARKET WIRE) -- 10/30/2003 -- Demand for implantable medical devices will increase nearly eleven percent annually to over $24 billion in 2007. An expanding incidence of heart, orthopedic and visual disorders attributable to aging demographic trends, coupled with product advances and changing patient care strategies, will account for most growth. The strongest gains in demand are anticipated for cardiac resynchronization devices, implantable cardioverter defibrillators (ICDs), drug-eluting stents, bioengineered tissue implants, implantable drug pumps and inserts, neurological stimulators, cochlear implants and retinal implants. These and other trends are presented in Implantable Medical Devices, a new study from The Freedonia Group, Inc., a Cleveland-based industrial research firm.

Efforts to improve the treatment and reduce the mortality risk of heart conditions will promote rapid sales growth for cardiac implants. Gains will reflect demographic patterns, changing health care reimbursement policies and product improvements. Third-party insurance concerns are covering more heart patients for pacemakers, ICDs and coronary stents. Advances in pacemakers, ICDs, cardiac resynchronization devices and drug-eluting stents are enabling persons with cardiac rhythm disorders and heart failure to live normal lives without dependence on complex drug regimens.

Although highly competitive and subject to stringent health insurance cost controls, orthopedic implants will continue to generate large US demand based on new product introductions and evolving trends in the external market environment. Spinal implants will see the fastest sales gains as advances in fusion, fixation and neurological stimulators improve the success rate and cost-effectiveness of related surgical procedures. Demand for reconstructive implants and trauma fixation products will expand at a moderate pace as the incidence of deteriorated joint conditions and fracture injuries rises with demographic and lifestyle trends.

Other implantable medical devices will account for demand of $1.9 billion in 2007, up nearly eleven percent annually from 2002. Implantable drug pumps and inserts, neurological stimulators and cochlear implants will lead growth. The vulnerability of elderly individuals to visual impairments will continue to underlie a large, expanding market for intraocular lenses. Specialized retinal implants are expected to derive strong growth opportunities in the treatment of macular degeneration. Lastly, the expected return of higher value-added silicone gel varieties will keep demand for breast implants advancing at a favorable pace.

Corinne Gangloff

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