[Insight: One of the more fascinating aspects of medical technology development is the penchant in the industry for finding different ways to accomplish traditional tasks in medical and surgical care. While certainly some technologies can be oversold for their putative clinical benefits --- driving up healthcare costs and giving the industry a bad rap --- some medtech advances indeed provide clinically better outcomes that few can legitimately argue, IMHO, as not being cost effective. These include major technology paradigm shifts like laparoscopic surgery. Another area that has shown a progressive set of changes to medical and, especially, surgical care, has been ablation technologies, the use of energy-based and other technologies to accomplish the dissection of tissue, the destruction of cancerous and other lesions and other functional alternation of tissue (e.g., in arrhythmia ablation) that was in most cases previously accomplished by, for the most part, a scalpel only (OK, a little simplified, but you get the idea). These ablation technologies now represent a pretty strong market or collection of market segments that are changing the way surgeons manipulate tissue. Below are some highlights of how the market breaks down by different modality. We also present some of the recent M&A activity in this industry. For additional details on ablation technologies, see the tag or category of "ablation" (or any of the separate modalities) in this blog. - Patrick Driscoll, Founder, MedMarket Diligence]
The worldwide high energy therapies market represents a $25 billion opportunity in 2008. The category consists of therapeutic devices and equipment that deliver the controlled application of one or more modalities of energy to tissue.
Global Ablation and Other Energy-Based Therapies
Market Share and Compound Annual Growth Rate by Modality
|
Energy Modality
|
% Total Market
|
CAGR
2003-2013 |
|
Electrical
|
42%
|
12%
|
|
Radiation
|
24%
|
7%
|
|
Light
|
10%
|
11%
|
|
RadioFrequency
|
9%
|
18%
|
|
Ultrasonic
|
7.5%
|
16%
|
|
Cryogenic
|
5%
|
18%
|
|
Thermal
|
1.25%
|
18%
|
|
Microwave
|
0.75%
|
22%
|
|
Hydromechanical
|
0.5%
|
12%
|
|
Total
|
100%
|
11%
|
Source: MedMarket Diligence report #A125, "Worldwide Ablation Technologies
The field of energy-based companies is well populated, partly because there are several different categories of energy application in clincial medicine, and because companies tend to be focused on single or tightly-focused energy applications. Thus there are companies specialising in cryoablation, thermal ablation, electrosurgery, brachytherapy and so on. Many companies have entered this field offering a new technology in one particular form of energy application.
A growing tendency in recent years has been the acquisition by larger, multifunctional medical device companies of smaller and often newer energy-based companies, as a means of adding a new technology to their portfolio. The past five years have seen many mergers and acquisitions of this kind involving energy-based companies. Exhibit 4-1 shows some examples of M&A activity from the past three years.
|
Acquirer
|
Target
|
Year
|
Technology
|
|
Cytyc
|
Proxima Therapeutics
|
2005
|
Radiation Therapy
|
|
Angiodynamics
|
RITA
|
2007
|
RFA
|
|
Hologic
|
Cytyc
|
2007
|
Endometrial ablation
|
|
St Jude
|
EP Medical Systems
|
2008
|
Cardiac electrophysiology
|
|
Boston Scientific
|
Guidant
|
2006
|
Pacemakers, defibrillators, etc
|
|
Olympus
|
Gyrus
|
2007
|
Radiofrequency
|
|
HealthTronics
|
Advanced Medical
Partners
|
2008
|
Cryotherapy
|
|
American Medical Systems
|
Laserscope
|
2006
|
Laser therapy
|
|
Galil Medical
|
Oncura
|
2006
|
Cryoablation
|
|
Guidant
|
AFx
|
2004
|
Microwave
|
|
Warburg Pincus
|
Bausch & Lomb
|
2007
|
Excimer laser
|
|
Valleylab (Covidien)
|
Vivant
|
2005
|
Microwave
|
|
Olympus
|
Celon
|
2004
|
Radiofrequency thermotherapy
|
|
TheraGenics
|
Galt Medical
|
2006
|
|
|
Gyrus
|
ACMI
|
2005
|
Thermal therapy
|
|
Guidant
|
AFx
|
2004
|
Microwave
|
|
Boston Scientific
|
Cryocor
|
2008
|
Cryoablation
|
|
HealthTronics
|
Endocare
|
2008 (pending)
|
Cryoablation
|
Source: MedMarket Diligence report #A125, "Worldwide Ablation Technologies












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