Will the U.S. Implantable Defibrillator Market Recover?

Will the Will the U.S. Implantable U.S. Implantable Defibrillator Market Defibrillator Market Recover?Recover?

Brahadeesh Chandrasekaran, Research Analyst

Venkat Rajan, Industry ManagerVenkat Rajan, Industry Manager

Healthcare

13 June 2012

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Today’s Presenters

Brahadeesh Chandrasekaran,

Research Analyst- Healthcare

Europe

2

Venkat Rajan

Industry Manager-

Advanced Medical Technologies

North America

Agenda

� U.S. Market Rebound?

� Market Dynamics

� ICD Market SWOT

� Impact of New Technologies

� Importance of Emerging Markets

3

Key Market Trends

• Market Stabilizing

• Recall Issues Persist

Implantable

Market Stabalizing

Recall Issues Persist Price Pressures

New Product Launches

4

Implantable Defibrilator

Technologies

Recall Issues Persist

Evidence Based Use Considerations

Changing Healthcare Landscape

Price Pressures

Source Frost & Sullivan

U.S. ICD Market Dynamics- Rebound?

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

Implantable Defibrillator Market- Growth Rate: United States, 2008-2016

5

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Source Frost & Sullivan

U.S. ICD Market Dynamics (continued)

Implantable Defibrillator Market- Conventional ICD vs CRT-D Revenue Share: United States, 2007-2016

50%

60%

70%

80%

90%

100%

6

0%

10%

20%

30%

40%

50%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CRT-D Conventional ICD (one and two lead)

Source Frost & Sullivan

ICD Market- Dynamic SWOT

Strengths Weaknesses

pp

ort

un

itie

s

ATTACK Strategies:

• Focus on 3rd Generation

REINFORCE Strategies:

• Disciplined Portfolio

Key Growth Strategies from SWOT Model

• New Technologies

• Patient Demographics

• Last line of Defense

• Pricing Caps• Market Saturation

7

Op

po

rtu

nit

ies

Th

reats

DEVELOP Strategies:

• Tiered Product Portfolio

• Adaptable Design Platform

• Focus on 3rd Generation Capabilities

• Low Cost Devices

• Disciplined Portfolio Management

• Emerging Market Focus

AVOID Strategies:

• Low Value Add Features

• Fast Follower Mentality

• Expansion of Addressable Patient

Population

• Recalls

• Alternate Treatments

Source: Frost & Sullivan.Source Frost & Sullivan

Impact of New Technologies

Quadripolar CRT-D

• Has the potential to expand treatment

options for patients non-responsive to

current CRT therapy

• St.Jude Medical’s Quadra approved

in late 2011 by FDA

• Buzz relatively positive

• Concerns:

• More clinical evidence required

Addressable Patient Population

Quadripolar CRT-D

8

• Satisfaction with bi-polar leadsS-ICD

S-ICD

• Cameron Health acquired by Boston

Scientific in March 2012

• Received a 7-1 FDA advisory panel

approval in March

• Targeting low arrythmia burden

patients

• Reduced lead infection risk

• Concerns: Painless ATP

Emerging Markets Strategy Key to Long Term Growth

Established Markets Slowdown Emerging Markets Underserved

• U.S., Western Europe, and Japan

combine for 89% of total implant volume

• Long term growth rate expectated to be

flat to single digits

• Unique strategies necessary for India,

China, and Latin America

• Medtronic CEO commented that prices

in underserved markets might need to be

five to ten times cheaper than current

high-end products

• Regional competition from local players

a competitive concern (ex: in India Shree

9

a competitive concern (ex: in India Shree

Pacetronix and Medived)

United States

59%

W. Europe

28%

Japan

2%

ROW

11%

Implantable Defibrillator Unit Implant Share: Global, 2011Source Frost & Sullivan

Next Steps

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For Additional Information

Janique Morvan

Corporate Communications

Healthcare

+ 33 (0) 679 22 4142

[email protected]

Venkat Rajan

Industry Manager

Medical Devices

(210) 247-2427

[email protected]

13

Sowmya Rajagopalan

Program Manager

Medical Device Industry

(+91-44) 6681-4196

[email protected]

Brahadeesh Chandrasekaran

Research Associate

Medical Device Industry

(+91-44) 6681-4193

[email protected]