Key dynamics in the urology sector, helping to fuel healthcare M&A activity, include:
Urological Devices Market Expansion
Fueled by increases in sales of urinary catheters and urological endoscopes, the U.S. urological devices market is estimated to reach over $5.4b by 2016. Urinary continence products account for almost 40% of the market – the largest among all product categories. Among other factors, favorable reimbursement, improved diagnosis technology and rates for prostate cancer and benign prostatic hyperplasia (BPH) and the aging population have contributed market growth (Source: iData).

As a backdrop to healthcare M&A actvitiy, leading dynamics in the spine surgery sector include:

• Minimally invasive Spine Surgeries (MISS) – increasingly being used to implant lumbar fusion devices, interspinous fusion systems, spinal non-fusion devices and to perform more simple procedures, such as discectomies. Traditional surgery requires a large incision in the back or abdomen, requiring the expertise of specialized vascular surgeons and risking serious injury.  May involve surgical complications such as excessive blood loss and severe post-operative pain, and significant hospital stays and recovery periods.

As part of our Healthcare M&A and strategic consulting services, we offer the following overview of the Dental market as a context to understand mergers and acquisitions in the sector.

• Changing Demographics. The aging population and increased awareness drive the demand for aesthetic and functional dentistry. Approximately 10% of people over 65 have some form of periodontal disease.According to the U.S. Census Bureau, in 2012 there were > 5 million Americans aged 85 years or older.By 2050, that number is projected to more than triple to ~19 million.The population aged 65 to 84 years is projected to increase > 85% during the same period.

As part of our Healthcare M&A and strategic consulting services, we offer the following overview of the Diagnostic Imaging market as a context to understand mergers and acquisitions in the sector.

• Growth in Diagnostic Imaging Procedures Slowing Down.  Recent data shows that the number of physician visits by patients 65 or older resulting in an imaging exam is consistently trending downward, from 12.8%in 2003 to 10.6% in 2011. Similarly, Medicare spending per enrollee for imaging has declined from $418 in 2006 to $390 in 2011.Maturation of technological advances, over-saturation of imaging centers, radiation awareness, new guidelines from the American College of Radiology reducing duplicative studies and new healthcare reimbursement policies have all led to the slowdown.

Vascular Access Industry Trends

The Walden Group’s assessment of vascular access market dynamics:

Growing Market and Changing Demographics. In 2012, the U.S. market for vascular access devices was worth an estimated $4 billion –  a 6.1% increase over the previous year.  The market is expected to continue to grow at a high-single-digit rate and exceed $6 billion by 2019 in the U.S. alone*. The aging population and increased prevalence of diabetes and obesity has put more Americans at risk for renal disease, among other illnesses, contributing to the growing market.

The Walden Group’s assessment of aesthetic market dynamics:

• Large and Growing Market – Since 2000, U.S. aesthetic procedures have grown from 5.7 million to 11.5 million (CAGR 12%), representing a total market opportunity of $12.2b (source: Global Data). Americans spent almost $11 billion on cosmetic procedures in 2012 of which $6.7 billion was spent on surgical procedures; $2 billion on injectables; $1.8 billion on skin rejuvenation procedures; and over $483 million on other nonsurgical procedures, including laser hair removal and laser treatment of leg veins.

As part of our Healthcare M&A and strategic consulting services, we offer the following overview of the ophthalmic surgery market as a context to understand mergers and acquisitions in the sector.

• Continuing market growthDiagnostic and treatment volumes are expected to increase as the population ages. The number of Medicare patients is expected to double in number of the next two decades. Surgical volumes for ophthalmology are expected to increase 30-50% over those years…