Leading Companies Resort to Strategic Alliances to Cement Positions in Global Implantable Drug Delivery Devices Market
Transparency Market Research’s new report says that the global market for implantable drug delivery devices stood at US$11.6 bn in 2011 and is likely to reach a valuation of US$21.1 bn by 2018. The market is expected to register a progressive 8.8% CAGR between 2012 and 2018. In this blog post, several questions that are important for understanding the growth of the implantable drug delivery devices are discussed:
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Q. How are technological advancements stoking the growth of the market?
A. The development of biodegradable medical devices such as biodegradable intraocular devices and bio-absorbable stents will give impetus to the progress of this market. In addition, these biodegradable products will substitute currently available implants such as coronary drug eluting stents and intraocular drug delivery devices that are non-biodegradable.
Q. What are the factors holding back the market’s growth?
A. The availability of external drug delivery devices and technological advancement of these devices will hold back the market’s growth. For example, the market for brachytherapy seeds is displaying slow growth due to the introduction of newer technologies as well as enhancement of pre-existing alternate technologies such as image guided brachytherapy, HDR devices, and pulse dose rate therapies.
The increasing number of product recalls and the increasing number of lawsuits will impede the growth of this market. The stringent approval process in place for the use of medical devices is likely to play a significant role in the market’s growth. This is because implantable drug delivery products are classified as high-risk medical devices (Class I), and thus it involves a lengthy and expensive procedure to meet FDA regulations or receive CE marking. The introduction of the Affordable Healthcare for America Act in 2010 is also restraining the growth of this market.
Q. What are the growth strategies that players in the market are adopting?
A. Strategic alliances and partnerships are what key players in the market are venturing into to attain growth objectives. For example, Merck and Bayer have ventured into strategic alliances with DFID, UN, and Marie Stopes International for marketing their products in developing economies and reducing the prices of products as much as 50%.
The development of biodegradable implants is one of the major growth strategies that leading market players are adopting. A case in point is Allergan Inc. The introduction of Ozurdex, which is the biodegradable implant of Allergan is expected to support Allergan Inc. to dominate in the global drug delivery devices market over the next few years.