The U.S. neurological device market, which has seen several global manufacturers snapping up smaller companies that make neuromodulation devices, is expected to grow by $5 billion over the next five years, a research firm predicts.
That growth will likely come about as a result of an increase in neurological procedures, wider acceptance of neuromodulation, and the development of more advanced technology, notably in the neuromodulation category, according to a new report from iData Research, a Canadian medical-device research firm.
Neuromodulation devices include spinal cord stimulators and deep brain stimulators. Stimulators can be used to treat neurological disorders such as Parkinson's disease and tremors.
The market leader in three of the five neuromodulation markets is Medtronic, according to iData Research. In August, the Minneapolis-based manufacturer said it would acquire Sapiens Steering Brain Stimulation, a privately held company based in Eindhoven, Netherlands, that is developing deep-brain stimulation technologies.
Neurological devices have traditionally made up smaller revenue segments for large devicemakers. However, as more commonly used implantable products such as pacemakers and hip implants face pricing pressure from hospitals, devicemakers are looking for new ways to buy and develop innovative technologies that can help maintain their margins.
Other devicemakers with neuromodulation portfolios include Boston Scientific, St. Jude Medical and Cyberonics. St. Jude Medical, which is based in St. Paul, Minn., also announced a neuromodulation deal in 2014. It bought NeuroTherm, which makes radiofrequency ablation devices, for $200 million.
Medtronic said that revenue in the neuromodulation segment grew 7% to $972 million in the first half of its fiscal 2015, which ended Oct. 24, 2014, compared to $907 million it reported in the first six months of 2014.
Boston Scientific also reported about 7% growth in neuromodulation revenue in the first half of its fiscal year, while St. Jude saw flat sales of neuromodulation devices in the first nine months of the year.
Follow Jaimy Lee on Twitter: @MHjlee
