The Medical Device Industry Stays The Course In 2012
The prospective medical device tax, the continuing decline of venture investing, pricing challenges, austerity measures in Europe, and other headwinds continued to push against the medtech industry in 2012. But emerging clinical and geographic markets, along with an active M&A market, provided the industry with some momentum.
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With a total market potential estimated in the multibillion-dollar range, the drug-coated balloon opportunity is attracting a growing list of competitors, including several leading multinational cardiovascular device companies that have entered the space via recent acquisitions. DCBs still need to prove their worth in large, long-term clinical trials, but the ultimate proving point for DCBs could center on cost: if they can offer an effective treatment option that is significantly less expensive than existing devices, DCBs may provide a compelling economic argument.
In late December 2012, Covidien announced a definitive agreement to acquire drug-coated balloon company CV Ingenuity for an undisclosed amount. Covidien joins large cardiovascular device players such as Medtronic, which gained a drug-coated balloon when it acquired Invatec in 2010, and CR Bard, which has the lead in the US market as a result of its acquisition last year of Lutonix Inc. as well as a large number of DCB companies based in Europe.
CMS To Pay Co-Surgeons For Transcatheter Valve Procedures, But At Lower Value Than Sought By Physicians
Surgeons and cardiologists who perform transcatheter aortic valve replacement procedures will be paid for the total amount of their work in 2013, but CMS’ adoption of a lower relative value unit for TAVR will result in a lower payment amount.