Sports Medicine Devices – Brace for Impact!

Beulah Devadason, Senior Research Analyst

Healthcare Healthcare

18 August 2011

Today’s Presenter: Beulah Devadason

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Focus Points

Sports Medicine - Origin and overview

• Sports Medicine Product Categories

Sports Medicine Devices

• Surgical and Therapeutic Devices

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• Surgical and Therapeutic Devices

• Challenges and Drivers in the Sports Medicine Industry

• Outlook for Market Participants

About Frost & Sullivan

Sports Medicine – Overview

• Sports medicine is a specialization that mixes both the fitness and medical fields by combining medical principles with sports science to prevent injury and promote rehabilitation.

• Increasing competition in sports and athletic performance has lead to an increased incidence of injury in many sports.

• Sports medicine has the potential to save an

Fitness

Medicine

Sp

ort

s

Me

dic

ine

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Sports medicine has the potential to save an athlete's career, and his/her life.

• Sports medicine is essentially practiced by athletic trainers who monitor athletes for fitness indicators such as heart rate and blood pressure levels.

• Arthroscopic repair is the fastest growing segment in treatment of sports related injuries.

• Highest revenues in sports medicine are seen in the US

Sports Medicine – First Aid

Immediately following an injury, the PRICE method is used for administering first aid.

• P – Protection

• R – Restricted Activity

• I – Ice

• C – Compression

• E – Elevation

Source: Frost & Sullivan

Sports Medicine Product Categories

• Pain Relievers

• Topical Analgesics

• Capsaicin creams

• Counter irritants

• Steroid Injections

• Cortisone

• Prednisone

• Athletic Training

• Wraps

• Tapes

• Taping Supplies

• Athletic Training Kit (ATK)

• Cleaners & Disinfectants

• Disinfectant wipes

• Disinfectant sprays

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• Braces & Supports

• Upper body

• Lower body

• Specialty

• Cold and Heat Therapy

• Cold therapy

• Heat therapy

• Disinfectant sprays

• Surgery

• Arthroscopes

• Implants

• Other Instruments

Source: Frost & Sullivan

Sports Medicine Devices

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Surgical and Therapeutic Devices

Sports Medicine

Surgical Devices

Braces & Supports

The therapeutic or non-surgical sports medicine devices can be broadly classified into four segments. These include braces & supports, wraps & tapes, disinfectant wipes and alcohol based hand rub (ABHR), and finally cold and heat therapy products. Several of these products which were originally developed for use by athletes have now found their way into general medicine in the treatment of active individuals.

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Medicine Devices

Therapeutic Devices

Wraps & Tapes

Disinfectant Wipes & ABHR

Cold & Heat Therapy

Source: Frost & Sullivan

Challenges and Drivers in the Sports Medicine Industry

Increase in sports injury

More active aging

population

Increase in Arthroscopic

Approach

Ongoing Innovation

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Source: Frost & Sullivan

Quality, Safety& Pricing

Evidence-based

research

Market Engineering Measurements

Measurement Name Measurement Trend

Market Age Growth Increasing

Market Revenues (2010) $ 2.93 billion Increasing

Market Forecast (Year = 2017) $ 5.06 billion (9.6%) Increasing

Price sensitivity Medium Stable

Sports Medicine Devices Market: Market Engineering Measurements (World), 2010

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Price sensitivity Medium Stable

Number of competitors (active market competitors in base year) 50+ Increasing

Degree of competition (scale of 1 to 10) 8 Increasing

Degree of technical change Medium Increasing

Customer loyalty (scale of 1 to 10) 7 Stable

Market concentration (% of base year market controlled by top three competitors) 65% Decreasing

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan.

Outlook for Sports Medicine Device Manufacturers – Key Takeaways

� Sports medicine industry will provide a growing source of revenues for orthopedic brace and supports manufacturers.

� Pre-cut kinesiology tapes are gaining popularity in sports medicine devices for athletic training.

� Aging baby boomers, increasingly active elderly, and increased emphasis on sports performance contribute to a higher incidence of

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emphasis on sports performance contribute to a higher incidence of sports injury.

� Rise in minimally invasive procedures will aid the growth of the arthroscopic instruments segment of the sports medicine devices market.

� Sports medicine market will continue to grow at a CAGR of 9.6 percent reaching an estimated market value of $ 5.06 billion in 2017.

Next Steps

� Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (enquiries@frost.com)

� Join us at our annual Growth, Innovation, and Leadership 2012: A Frost & Sullivan Global Congress on Corporate Growthoccurring 15 – 16 May, 2012 (www.gil-global.com)

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� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news)

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