Frost & Sullivan: Minimally Invasive Surgery Products for General Surgery Continue to Provide Opportunities for Innovative Manufacturers

April 22, 1998

MOUNTAIN VIEW, Calif., April 21 /PRNewswire/ via NewsEdge Corporation -- Hope for a wide-spread conversion from open general surgeries to minimally invasive surgeries (MIS) was ignited when surgeons performed the first cholecystectomylaparoscopically in 1987. Manufacturers' optimism soared as demand for these products exploded.

U.S. General Surgery MIS Product Markets, strategic research from Frost & Sullivan (www.frost.com), investigates the devices that aid physicians in these revolutionary techniques. These markets combined to produce revenues of $820 million 1997 and are forecast to produce $1.4 billion by 2004.

With the onset of managed care, price has become the distinguishing factor, leading to intense price competition, product bundling and group purchasing. This increased competition is forcing out many smaller competitors that do not offer unique products against large manufacturers that secured contracts by giving discounts on diversified product offerings.

According to the study, however, the pendulum has swung from one extreme -- too many companies offering too many different types of products and services -- to another -- too few companies offering too similar products and services.

"Customers are diverse with varying needs that are often overlooked by large companies," said Laura Wilkes, medical analyst for Frost & Sullivan. "There is potential room for niche-focused companies that can meet these specific needs.

"Rather than focusing on innovation to differentiate themselves however, most device companies in this market are focusing on modifications of existing designs," added Wilkes. "Specifically by improving ergonomics, making the product easier to take apart and sterilize, improving quality, and cutting costs."

Companies that can provide enabling technology to make minimally invasive procedures easier for surgeons to perform will have significant market opportunity as open procedures continue to be converted to MIS procedures, albeit at a slower rate than originally anticipated. The key for manufacturers is not to just prove the convenience or innovation of their products, but the cost-effectiveness of these innovations backed by data from outcome studies.

Increasingly competitors are crossing over traditional boundaries to gain a competitive advantage. Device companies are partnering with pharmaceuticals and diagnostics companies to provide innovative patient solutions.

The report evaluates emerging technologies including laparoscopic cholecystectomy, appendectomy, hernia repair, TAPP, TEP, diagnostic laparoscopy, colon resection, general surgery laparoscopes, operative laparoscopy, microlaparoscopes, trocars, dilators, balloon disectors, endoscopic staplers, endoscopic clip appliers, endosutures, disposable sutures, autosutures, needle holders, knot pushers, general surgery laparoscopy diagnostic and therapeutic instruments, general surgery laparoscopic equipment, minimally invasive breast biopsy systems, intraoperative ultrasound, RF ablation, adhesion barriers, sealants, radioimmuno-guided surgery, and robotics.

Key participants in this market include 3M, Aesculap, Allegiance Healthcare, V. Mueller, Apple Medical Corporation, Applied Medical Resources, Aslan Medical Technologies, Biopsys Medical, Boss Instruments, Bryan Corp., Carl Zeiss, Chiu Technical Corporation, CIRCON Corporation, Cogent Light Technologies, ConMed Corporation, CooperSurgical, CORE Dynamics Inc., Cuda Products Corporation, Davol, Dexide, ElectroScope, Elmed, EndoVentions International, Ethicon, Ethicon Endo-Surgery, Everest Medical, General Surgical Innovations, Genzyme Surgical Products, Imagyn Medical Technologies, Inlet Medical Inc., InnerDyne Medical, Jarit Instruments, Karl Storz Endoscopy-America, Laurus Medical Corporation, Leisegang Medical, Linvatec/Hall Surgical Corporation, Mectra Labs, Medovations, Olympus America, Origin Medsystems, Pentax Precision Instruments Corporation, Pilling Weck Company, Reznik Instrument, Richard Wolf Medical Instruments Corporation, Scion International, Smith & Nephew, Solos Endoscopy, Stryker Corporation, Tahoe Surgical Instruments, TTI Medical / ACCU-Surg., United States Surgical Corporation, Valleylab, Weck Closure Systems, WISAP / Market-Tiers Inc., W.J. Surgical Instruments, and Zenith Medical Inc. Companies related to Acuson Corporation, Aloka of America, Anika Therapeutics, B & K Medical Systems, Bard Radiology Division, Biomatrix, B. Braun McGaw, CLOSURE Medical Corporation, Computer Motion, Cryolife Incorporated Ideas for Medicine, DeRoyal Industries Inc., Enable Medical Corporation, Focal, Genzyme Tissue Repair, Gliatech, W.L. Gore & Associates, Immunomedics, Intuitive Surgical, Lifecore Biomedical, Neoprobe Corporation, Radionics Inc., RadioTherapeutics Corporation, RITA Medical Systems, Taut Inc., and Tetrad.

This medical industry research has integrated the proven Frost & Sullivan Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the general surgery MIS product markets. A PowerPoint presentation is also included with the study, outlining the major points and displaying key charts and information.

Frost & Sullivan is an international marketing consulting company that monitors the medical industry for market trends, market measurements, and strategies. The ongoing research is utilized to update a series of research publications such as #5673-57, U.S. Arthroscopy System Markets, and #5235-57, U.S. Gynecologic Endoscopy System Markets, to support industry participants with customized consulting needs.

SOURCE Frost & Sullivan

CONTACT: Keith Hammond of Frost & Sullivan, 650-237-4384, or fax, 650-903-0915, or khammond@frost.com
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