This report contains a detailed description about cardiac pacemakers, its working, market potential, growth drivers and an in depth competitor analysis.Government policies and reimbursement have also been covered comprehensively.The report contains a detailed company profile of Cardiac Science Corporation and also throws light on the recent trends and developments related to cardiac pacemakers.
A pacemaker (or artificial pacemaker, so as not to be confused with the heart's natural pacemaker) is a medical device that uses electrical impulses, delivered by electrodes contacting the heart muscles, to regulate the beating of the heart. The primary purpose of a pacemaker is to maintain an adequate heart rate, either because the heart's native pacemaker is not fast enough, or there is a block in the heart's electrical conduction system. Modern pacemakers are externally programmable and allow the cardiologist to select the optimum pacing modes for individual patients. Some combine a pacemaker and defibrillator in a single implantable device. Others have multiple electrodes stimulating differing positions within the heart to improve synchronisation of the lower chambers of the heart.
Process
A pacemaker system consists of a battery, a computerized generator, and wires with sensors called electrodes on one end. The battery powers the generator, and both are surrounded by a thin metal box. The wires connect the generator to the heart.
The evolution of cardiac devices has opened new vistas in the health care industry. Growth rate exhibited by the cardiac devices industry, even during the recession years, confirms the positive growth prospects going ahead.The cardiovascular (CV) device industry is highly competitive and has reached maturity resulting in single digit growth rates of prominent devices such as pacemakers, defibrillators, and drug eluting stents (DES).
Though the death rates from CVD have declined, yet the burden of the disease remains high.
Prevalence rates according to age and gender
Source AHA-journal-report
Disease wise breakup of population
Disease | Affected numbers (in millions) |
High Blood Pressure | 76.4 |
Coronary Heart Disease | 16.3 |
Heart Fail | 5.7 |
Stroke | 7.0 |
Other problems | 1.3 |
Source AHA-journal-report
As per American Heart Association,the 7 metrics of cardiovascular diseases identified are:
The graph below depicts the number of deaths(in thousands) due to cardiac problems.
Source AHA-journal-report
The decline towards the end is due to advancement of medicine and science which has resulted in better healthcare facilities.
Government programs directly cover 27.8% of the population (83 million), including the elderly, disabled, children, veterans, and some of the poor, and federal law mandates public access to emergency services regardless of ability to pay. Public spending accounts for between 45% and 56.1% of U.S. health care spending.As per Per-capita spending on health care by the U.S. government,it is among the top ten highest spenders among United Nations member countries in 2004.
Government funded programs include:
Medicare covers cardiac pacemakers when provided by a hospital, skilled nursing facility, home health agency,comprehensive outpatient rehabilitation facility (CORP), or a rural health clinic.Most insurers provide coverage for device therapy, the insurance plan should be designed accordingly.It will, though, depend on age, medical condition or status, income or employer and where a person lives.
Type of Pacemaker | Cost($) | Reimbursement($) |
Single Chamber | 10,000 | 7748 |
Dual Chamber | 11,000 | 8919 |
Rate Responsive | 12,000 | 10,814(approx) |
Medicare will not fund patients for a MRI scan in case of a MRI-safe pacemaker
Source:MD Buyline Paper
Company | 2004 | 2007 | 2010 |
Medtronic | 1823 | 1937 | 2115 |
St. Jude | 898 | 1056 | 1356 |
Boston Scientific | 720 | 578 | 635 |
Total | 3441 | 3571 | 4106 |
Source Stjudereport
Source Stjudereport
This data tells that the market share of Boston Scientific has fallen in Pacemaker market from 2004 to 2010.
Source Stjudereport
Manufacturers | Products |
BIOTRONIK Pacemaker | Cylos DR-T |
CCC Pacemaker | |
Sorin Group | Reply DR |
Symphony DR 2550 | |
Boston Scientific(Guidant Medical) | ALTURA pacemaker family |
Medico Pacemakers | EASY |
MILLENNIUM | |
Medtronic Pacemekers | Adapta |
EnRhythm | |
St. Jude Medical Pacemakers | Affinity |
Victory | |
Shree Pacetronix Pacemakers | Ventralite |
Pinnacle | |
Vitatron Pacemakers | Vitatron T-series |
Vitatron C-series |
For exhaustive list visit: Healthbase
Medtronic found that the doctors in Inda and China saw some of the current state of art features as unecessary and too expensive.Instead, they wanted an affordable pace maker which was cheap and easy to implant.This led medtronic to develop a new pace maker, Champion aimed towards asian market segment.
For the five-year marketing plan of Medtronic,marketing mix activities include the following:
Source:Medtronic's market segmentation strategy
In 2004, St. Jude invited companies to be a part of the Thanks and GivingŪ campaign, an unprecedented union of celebrities, media retail and corporate partners that asked consumers to ?Give thanks for the healthy kids in your life, and give to those who are not.
In 2008, St. Jude Children?s Research Hospital received the Cause Marketing Forum?s Golden Halo Award, the industry?s top award.
Source:St Jude Cause related marketing
Activity | Objectives |
OPTO circuits purchased 77% of Cardiac Science?s shares | * This transaction is expected to open many new global markets for Cardiac Science?s products and will greatly enhance Opto Circuits? product offering and presence in the United States. * Cardiac science business will benefit greatly from Opto Circuits? financial resources, operational capabilities and global scale. |
St. Jude Medical Inc. (STJ) bought 19% of CardioMEMS through a $60 million equity investment last year and has an exclusive right to buy the rest for $375 million | * The deal could allow St. Jude access to CardioMEMS? wireless sensing and communication technology, used to assess cardiac performance. * CardioMEMS? monitoring system involves a sensor being placed in a patient?s pulmonary artery and transmitting real-time data for clinicians to analyze. * It can transmit from the patient?s home, reducing the burden on hospitals. * A trial presented earlier this year found the device reduced the rate of heart failure-related hospitalizations by 30% at six months and 38% after a year. St. Jude has benefited from selling mostly life-saving devices. |
CEA-Leti and five partners( :Heart-Beat Scavenger (HBS) Consortium) are combining their expertise to develop a self-powered cardiac pacemaker eight times smaller than current models | The HBS Consortium project goals include: * Developing a self-powering pacemaker by harvesting the mechanical energy produced by the movements of the heart and eliminating the need for batteries that must be replaced every six to 10 years. * Reducing the size of a cardiac pacemaker by a factor of eight, from 8 cm3 to 1 cm3. This reduction will make it possible to attach the pacemaker directly to the epicardium, eliminating the need for intravenous introduction of cardiac probes. |
Cardiac Science is a global medical device company and a subsidiary of Opto Circuits (India) Ltd. Company employ more than 550 people worldwide. Global capabilities include direct and indirect sales personnel and distribution in more than 100 countries and an extensive worldwide service network. Cardiac Science Corporation was formerly known as Quinton Cardiology Systems, Inc., and changed its name in September 2005. The company was founded in 1913 and has operations in California, Wisconsin, China, Central Europe, Denmark, France, and the United Kingdom.
Name | Designation |
David L. Marver | Chief Executive Officer and President |
Michael K. Matysik | Chief Financial Officer |
Robert W. Odell | Senior Vice President of Strategy Design & Operations |
Todd T. Alberstone | Vice President and General Counsel |
Barbara J. Thompson | Vice President of Human Resources |
Cardiac Science is a global leader in the development, manufacture, and marketing of diagnostic and therapeutic cardiology products and services. Company provides a full spectrum of cardiology products and services that help protect hearts and save lives, including:
? Devices designed to identify the early stages of heart disease ? such as electrocardiographs,cardiac stress testing systems,diagnostic workstations and Holter monitors.
? Sophisticated systems for cardiac rehabilitation and cardiology data management
? Innovative and patented automated external defibrillators(AEDs) that provide assistance to victims of sudden cardiac arrest for both medical and public markets.
Brand Name | Product & Services |
Burdick | ECG Machines, Stress Testing, Holter System |
HeartCentrix | Data Management & Connectivity |
Powerheart | Defibrillators/AED Program |
Quinton | Cardiac Rehab, ECG Machines, Stress Testing |
Product | Services and Support |
Defibrillator/AED (Automated External Defibrillator )Programs | Professional Services |
ECG Machines | Technical Support |
Stress Testing | Education and training |
Diagnostic Workstation | Service Contracts |
Holter Systems | Announcement & Upgrades |
Cardiac Rehab | Product Registration |
Data Management & Connectivity |
The Company was very active in Corporate Development during 2009, forging a host of new partnerships and alliances that will contribute to future growth and profitability.
All figures in US$ (thousands)
This shows that other than USA, Japan is a big potential market for cardiac pace makers. Also it shows dependence of Cardiac science corporation on few markets like USA and Japan.
The National Institute on Aging?s Cellular Biophysics Section is seeking statements of capability or interest from parties interested in collaborative research to further develop, evaluate, or commercialize biological pacemakers.
Technology:
A common symptom of many heart diseases is an abnormal heart rhythm or arrhythmia. While effectively improving the lives of many patients, implantable pacemakers have significant limitations such as limited power sources, risk of infections, potential for interference from other devices, and absence of autonomic rate modulation.
The technology consists of biological pacemakers engineered to generate normal heart rhythm. The biological pacemakers include cardiac cells or cardiac-like cells derived from embryonic stem cells or mesenchymal stem cells. The biological pacemakers naturally integrate into the heart. Their generation of rhythmic electric impulses involves coupling factors, such as cAMP-dependent PKA and Ca2+-dependent CaMK II, which are regulatory proteins capable of modulating/enhancing interactions (i.e. coupling) of the sarcoplasmic reticulum-based, intracellular Ca2+ clock and the surface membrane voltage clock, thereby converting irregularly or rarely spontaneously active cells into pacemakers generating rhythmic excitations.
Applications:
This technology can be utilized in heart disease characterized by arrhythmia or situations requiring an implantable cardiac pacemaker.
Advantages:
In contrast to current implantable cardiac pacemaker technology, this technology is not externally powered, has a lower risk of infection, has decreased potential for interference from other devices, and has full autonomic rate modulation.
Development Status:
Early stage.
Patent Status:
U.S. Provisional Application No. 61/180,491 filed 22 May 2009
Name of the Patient | Experience | Link | |
Patrick R. | After the surgery, with his doctors approval Pat started playing tennis within weeks."I ended up playing competitive tennis." But, he struggled to walk up a hill?particularly a steep hill. It was also difficult to ride a bike,again especially uphill.He learned that his 1990s-era pacemaker did not yet have the technology to sense the subtle physical, muscular activity exerted when going up a hill. However, if he were to walk down a hill where his legs were pounding the pavement a little bit more, the pacemaker would be able to sense more measurable physical muscular activity. He went in for a new pace maker in 2002 with sensor technology.It would do a better job of adjusting his heart rate while going uphill or doing other activities by sensing the associated increase in his breathing. Two days after when patrick, tried climbing up the hill, he could do that without any difficulty. | http://www.bostonscientific.com/lifebeat-online/assets/pdfs/resources/CRM9R-1080-0609_PacemakerBrochure.pdf | |
Sharon S. | In fact, I was astonished at how much better I felt in the hospital. I really didnt know how sick I was until after getting the pacemaker, when I felt well again."For a while the pacemaker felt heavy, but that feeling went away in a matter of days | http://www.bostonscientific.com/lifebeat-online/assets/pdfs/resources/CRM9R-1080-0609_PacemakerBrochure.pdf |