Neurotech Reports Revises Market Projections Downward
Neurotech Reports, the publisher of this newsletter, has released an updated version of its market research report on the neurotechnology industry that projects lower worldwide device sales than were projected in the previous version of the report. The Market for Neurotechnology: 2010-2014 was revised in part to reflect the impact of recent economic conditions.
The report projects that worldwide sales of neurotechnology products will be $4.3 billion in 2010, considerably less than the $5.9 billion projected in the previous version of the report, which was published in 2007. While the economic downturn of 2008-2009 is a large factor in this reassessment, continuing uncertainty concerning reimbursement of new neurotechnology devices is exerting a negative influence on market growth.
Among the companies who have been impacted by reimbursement decisions are Cyberonics, who was forced to abandon the depression market for its VNS therapy despite FDA approval, NeuroMetrix, which is awaiting a CMS national coverage decision related to nerve conduction studies, and Zynex Medical, a manufacturer of stroke rehabilitation devices. Failed clinical trials, such as the Northstar EVEREST stroke trial, and delayed FDA approval decisions were also factors in the reduced sales projections.
Despite the reductions, the report is still projecting double-digit growth rates in many categories. Neuromodulation device sales will grow from $2.3 billion in 2010 to $6.0 billion in 2014, the report projects. Cochlear implants are projected to grow from $768 million in 2010 to $1.7 billion in 2014.