Brazilian, Indian, and Chinese Markets for Orthopedic Biomaterials 2011

Introduction:

The Brazilian, Indian, and Chinese (BIC) market for orthopedic biomaterials, consisting of bone graft substitutes (BGS) and hyaluronic acid (HA) viscosupplementation, is expanding as procedure volumes and disposable incomes continue to grow in these countries. Procedure growth is being driven primarily by the aging population and the associated increase in age-related ailments, growing awareness of and improved accessibility to treatment, as well as th expanding medical tourism industry. Although improving, accessibility to medical treatment and reimbursement issues continue to inhibit procedure volumes and market potential to some extent; patients in rural areas do not have access to the higher-quality medical care that is focused in urban areas. Procedures involving orthopedic biomaterials are poorly reimbursed, and a large portion of the population still cannot afford these treatments out-of-pocket or through private insurance. The presence of alternative, and more affordable traditional treatments-such as ayurveda, yoga and naturopathy, Unani, Siddha, and homeopathy in India, and traditional Chinese medicine, such as tai chi or acupuncture-will also continue to limit the market's potential, especially in the HA viscosupplementation market. Nevertheless, as the respective governments in these growing economies continue to invest in health care, accessibility and reimbursement issues will become less inhibitive. Moreover, as discretionary income for the average citizen continues to rise, there will be an increasing shift toward BGS surgeries and HA viscosupplementation treatments.

Questions Answered in This Report:

• As accessibility to and awareness of BGS materials increase across the BIC countries, there will be a shift away from autograft toward the use of BGS materials in surgical procedures. In what types of procedural applications will adoption of BGS materials be the strongest? What is driving the uptake of certain BGS materials over others in the BIC region? Which country will show the highest BGS procedural growth and which countries will be slowest to shift away from the use of autograft?
• The economies of the BIC nations continue to exhibit remarkable growth. As the gross domestic product per capita and disposable incomes of the average citizen in these countries grow, procedures involving BGS materials will become more affordable, especially as respective governments continue to invest further in health care. Which country generated the largest BGS revenues in 2010? Which of the materials will undergo the strongest growth through 2015? How will the average selling prices of the various BGS applications be affected by the adoption of particular materials over others? How will cultural influences across the various BIC nations affect revenue growth in the markets for the various BGS materials?
• With the recent introduction of 1-injection HA viscosupplementation products in Brazil and India, the markets for 3- and 5-injection products in these countries will face increased competition given the convenience of newer, premium-priced 1-injection products. Although adoption rates for the 1-injection treatments will vary between the two countries, growth in the number of 1-injection treatments will continue to be extremely high throughout the forecast period. How will the adoption rates of 1-injection products differ in Brazil compared to India? How will this impact the 3- and 5-injection treatment segments over the forecast period? To what effect will the lack of a 1-injection market in China affect its market size compared to Brazil and India?
• In the BIC nations, HA viscosupplementation is still a relatively new method of treatment. Some physicians still look to administer alternative treatments, such as a combination of chondroitin and glucosamine in Brazil, or traditional treatments such as ayurvedic practices in India and traditional Chinese medicine in China. Nonetheless, the recent introduction of well-recognized foreign brands and their strong track records of safety and efficacy will bring about stronger physician awareness of and confidence in HA viscosupplementation products. Which country will show the strongest revenue growth through 2015 and why? What is the outlook for total HA viscosupplementation treatments in each country?