Falling Revenues Seen for Heart Valve Market

Around 80,000 heart valve repair procedures were performed in Europe last year, a figure estimated to grow to almost 87,000 procedures by 2007. However, a new report from healthcare analysts Frost & Sullivan (Report 3824) predicts that the revenue generated by the sale of heart valves will decrease over that period of time because of price erosion. Frost & Sullivan valued the European heart valve market in 2000 at US$162.6 million.

Repair procedures last year used either mechanical or tissue replacement valves in 88% of cases and annuloplasty rings in the remaining 12%. According to research analyst Kate Lawrence, "Cost containment in the European healthcare system has put pressure on hospitals' spending budgets. Since heart valves are primarily purchased through public tenders, intensifying competition between manufacturers to win these tenders has resulted in a general fall in prices over the years.” As a result, there is a negligible difference in price today between tissue valves, once more expensive, and mechanical valves.

Another factor limiting the market is the small increase in the number of patients with valve disease. The threshold implant age for valve replacement is now as low as 60 years, yet roughly 21% of the European population is over 60. The annuloplasty ring is continuing to grow in favor, because it is a cheaper alternative to total valve replacement, preserves existing valve structure, and is less traumatic for the patient. This market, worth $8 million in 2000, is forecast to reach $11.1 million in 2007.

The tissue valves market generated $58.9 million in 2000, while the mechanical valves market was valued at $95.3 million that year. The tissue valve sector is growing faster than the mechanical valve sector because improvements have increased the durability of tissue valves and boosted sales. Frost & Sullivan predicts that mechanical heart valves will continue to fall over the forecast period.




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