tutorial contract manufacturing market june 2015
TRANSCRIPT
Ali MADANI
Phone: + 33 1 47 78 46 00
TUTORIAL – Contract Manufacturing Market
June 2015
Ali MADANIPhone: + 33 1 47 78 46 00
2
TUTORIAL Contract Manufacturing
June 2015
Table of contents
OEM Contract Manufacturing strategyContract Manufacturing value chain
OEM contract manufacturing strategy: Stryker, Depuy-Synthes, Zimmer, Biomet, Smith & Nephew and Challengers
Contract Manufacturing market sizing : By products & by customers
Forging, casting, hip machining & finishing, knee machining & finishing, spine & trauma machining & finishing, instruments, cases & trays, coating, ceramics, Marking, Packaging and Sterilization.
Orthopaedic contract manufacturing & home-made in 2014
Heavy trends: Market concentration, OEM facility disinvestments, moving to LLC ?
Contract Manufacturing market Forecasts
I
II
III
Ali MADANIPhone: + 33 1 47 78 46 00
3
TUTORIAL Contract Manufacturing
June 2015
Contract manufacturing market value chain
Hospitals &
Clinics
Orthopaediccompanies
OEM
Revenues in 2014:
37.4 B US$
6 majorsFew 10 big challengersFew 100 little size competitors
Co
ntr
act
Man
ufa
ctu
rers
Implants
Instruments
Cases & Trays
Ali MADANIPhone: + 33 1 47 78 46 00
4
TUTORIAL Contract Manufacturing
June 2015
OEM contract manufacturing strategy: Stryker
Source: Avicenne 2015
Casting: Home-made Mahwah (US), Limerick (Ir)
Forging: No home-made Forge
Machining & other facilities: Mahwah (US), Cork (Ir), Suzhou (China), Limerick (Ir), Kalamazoo (US), Cestas (Fr), Kiel (Ger)
Contract Manufacturing Rate
0% 20% 40% 60% 80% 100%
Packaging
Coating
Sintering (Ceramics)
Cases & Trays
Instruments
Implants Machining & Finishing
Implants Casting
Implants Forging
0% 20% 40% 60% 80% 100%
Locking plate
Trauma LF plate
Hip cup
Hip stem
0% 20% 40% 60% 80% 100%
Spine Lumbar
Spine cervical
Trauma plates & screws
Knee insert
Knee tibial
Knee femoral
Hip liner
Hip head
Hip cup
Hip stem
Ali MADANIPhone: + 33 1 47 78 46 00
5
TUTORIAL Contract Manufacturing
June 2015
OEM contract manufacturing strategy:
Depuy-Synthes
Casting: Home-made Cork (Ir), Leeds (UK), Raynham (US)
Forging: No home-made Forge
Machining & other facilities: Cork (Ir),Warsaw(US),Raynham (US), Leeds (UK), Suzhou (China), & Synthes: 10 in Europe and 4 in US
Source: Avicenne 2015
Contract Manufacturing Rate
0% 20% 40% 60% 80% 100%
Packaging
Coating
Sintering
Cases & Trays
Instruments
Implants Machining & Finishing
Implants Casting
Implants Forging
0% 20% 40% 60% 80% 100%
Locking plate
Trauma LF plate
Tibial knee
Hip stem
0% 20% 40% 60% 80% 100%
Spine Lumbar
Spine cervical
Trauma plates & screws
Knee insert
Knee tibial
Knee femoral
Hip liner
Hip head
Hip cup
Hip stem
Ali MADANIPhone: + 33 1 47 78 46 00
6
TUTORIAL Contract Manufacturing
June 2015
OEM contract manufacturing strategy: Zimmer
Source: Avicenne 2015
Casting: Home-made Warsaw (USA)
Forging: Winterthur (Switzerland)
Machining & other facilities: Warsaw(US), Winterthur (Sw), Ponce (Portorico), Shannon
(Ir), Beijing (China), Etupes (Fr), Dover (US), Carlsbad (US), Parsippany (US)
Contract Manufacturing Rate
0% 20% 40% 60% 80% 100%
Packaging
Coating
Sintering
Cases & Trays
Instruments
Implants Machining & Finishing
Implants Casting
Implants Forging
0% 20% 40% 60% 80% 100%
Locking plate
Trauma LF plate
Hip Cup
Tibial knee
Hip stem
0% 20% 40% 60% 80% 100%
Spine Lumbar
Spine cervical
Trauma plates & screws
Knee insert
Knee tibial
Knee femoral
Hip liner
Hip head
Hip cup
Hip stem
Ali MADANIPhone: + 33 1 47 78 46 00
7
TUTORIAL Contract Manufacturing
June 2015
OEM contract manufacturing strategy: Biomet
Source: Avicenne 2015
Contract Manufacturing Rate
0% 20% 40% 60% 80% 100%
Packaging
Coating
Sintering
Cases & Trays
Instruments
Implants Machining & Finishing
Implants Casting
Implants Forging
0% 20% 40% 60% 80% 100%
Locking plate
Trauma LF plate
Hip Cup
Tibial knee
Hip stem
0% 20% 40% 60% 80% 100%
Spine Lumbar
Spine cervical
Trauma plates & screws
Knee insert
Knee tibial
Knee femoral
Hip liner
Hip head
Hip cup
Hip stem
Casting: Home-made Fair-Lawn(USA)
Forging: Berlin (Germany)
Machining & other facilities: Warsaw(US), Berlin (Gr), Darmstadt (Gr), Bridgend &
Swindon (UK), Valence (Fr), Valencia (Spain), Zhejiang & Changzhou (China), Irvine
(US), Miami (US)
Ali MADANIPhone: + 33 1 47 78 46 00
8
TUTORIAL Contract Manufacturing
June 2015
OEM contract manufacturing strategy:
Smith & Nephew
Source: Avicenne 2015
Contract Manufacturing Rate
0% 20% 40% 60% 80% 100%
Packaging
Coating
Sintering
Cases & Trays
Instruments
Implants Machining & Finishing
Implants Casting
Implants Forging
0% 20% 40% 60% 80% 100%
Locking plate
Trauma LF plate
Hip Cup
Femoral knee Oximium
Tibial knee
Hip stem
0% 20% 40% 60% 80% 100%
Trauma plates & screws
Knee insert
Knee tibial
Knee femoral
Hip liner
Hip head
Hip cup
Hip stem
Casting: No home-made casting
Forging: No home-made forging
Machining & other facilities: Memphis(US), Aarau (Sw), Beijing (China), Warwick (UK),
Tuttlingen (Gr), Mansfield (US), Oklahoma City (US), Calgary (Canada)
Ali MADANIPhone: + 33 1 47 78 46 00
9
TUTORIAL Contract Manufacturing
June 2015
OEM contract manufacturing strategy:
Medtronic
Source: Avicenne 2015
Home-madeContract
manufacturing
17 700
0 5 000 10 000 15 000 20 000
Spine instruments
Spine & Traumamachining
Instruments
Coating
Nb of components in 2014
247 900
198 300
460 400
0 200 000 400 000
Screws & cages 2
Spine plates 1
Lumbar Univ.sys.
Nb of sets in 2014
43 700
35 000
81 200
0 40 000 80 000
Screws & cages 2
Spine plates 1
Lumbar Univ.sys.
3 100
0 1 000 2 000 3 000 4 000
Spine instruments
Ali MADANIPhone: + 33 1 47 78 46 00
10
TUTORIAL Contract Manufacturing
June 2015
OEM contract manufacturing needs: Challengers
Source: Avicenne 2015
Home-madeContract
manufacturing
23 000
204 500
64 000
107 500
654 000
0 400 000 800 000
Trauma LC plates
Trauma LF plates
Knee tibial
Hip cups
Hip stems
362 000
788 000
119 600
115 500
0 400 000 800 000
Knee tibial
Knee femoral
Hip cups
Hip stems
40 500
16 000
12 900
0 10 000 20 000 30 000 40 000 50 000
Knee tibial
Knee femoral
Hip stems
362 000
145 000
242 000
239 000
126 000
0 100 000 200 000 300 000 400 000
Knee insert
Knee tibial
Hip Liner
Hip head
Hip cup
Forging
Casting
Wholly machined
Nb of components in 2014
22 800
16 000
12 000
73 000
0 20 000 40 000 60 000 80 000
Trauma LF plates
Knee tibial
Hip cups
Hip stems
442 000
177 000
296 000
444 000
233 000
0 200 000 400 000
Knee insert
Knee tibial
Hip Liner
Hip head
Hip cup
Ali MADANIPhone: + 33 1 47 78 46 00
11
TUTORIAL Contract Manufacturing
June 2015
Contract manufacturing product segmentation:
11 segments & 40 sub-segments
Contract Manufacturing
product
segmentation
Forging
Hip stem
Hip cup
Tibial Knee
LF Plates
LC Plates
Casting
Femoral Knee
Tibial Knee
Hip cup, stem
Hip machining
Stem
Cup
Head
Liner
Monobloc
Knee machining
Femoral
Tibial
Insert
Contract Manufacturing
product
segmentation
Spine& Trauma
Spine Lumbar plates
Spine cervical Plates
Spine cervical screws & cages
Trauma internal plates
Trauma screws & Others
Instruments
Hip
Knee
Spine
Trauma
Cases & Trays
Hip
Knee
Spine
Trauma
Coating
Stem
Cup
Femoral
Tibial
Ceramics
Head
Liner
MPS
Others
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
12
TUTORIAL Contract Manufacturing
June 2015
Forging 2014: Home-made & Contract Manufacturing
Contract Manufacturing
402 M US$
Source: Avicenne 2015
Home-made
75 M US$
52 49
33
3
2942
18
20
7
5
-
-
-
-
14,7 -
33 023
2
17 27
3
13
1
1
0
10
20
30
40
50
60
70
80
90
100
De
pu
y-Sy
nth
es
Stry
ker
Zim
me
r
Bio
met
Smit
h &
Nep
he
w
Ch
alle
nge
rs
Stem Cup Femoral Knee
Tibial knee LF plates LC plates
Depuy-Synthes, Stryker &
Smith outsource totally.
Biomet forging home-made
almost all.
Zimmer30%
Biomet62%
Challengers8%
Ali MADANIPhone: + 33 1 47 78 46 00
13
TUTORIAL Contract Manufacturing
June 2015
Casting: Home-made & Contract Manufacturing
Home-made
240 M US$
Contract Manufacturing
176 M US$
31
411
3
24
55
10
2 4
4
14
-
--
-
-
4
2
7
0
10
20
30
40
50
60
70
80
90
De
pu
y-Sy
nth
es
Stry
ker
Zim
me
r
Bio
met
Smit
h &
Nep
he
w
Ch
alle
nge
rs
Femoral knee Tibial knee Hip cup Hip stem
Stryler29%
Depuy-Synthes
28%
Zimmer22%
Biomet19%
Challengers2%
Femoral knee is the most casted
components.
The majors, except Smith, cast in-
house their main needs
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
14
TUTORIAL Contract Manufacturing
June 2015
Hip machining & finishing:
Home-made & Contract Manufacturing
Home-made
236 M US$
Contract Manufacturing
152 M US$
10
40
12
1
13
286
4
3 4
9
1,2
0,7
1,6 1,9
5,2
1
1
23
5
0
5
10
15
20
25
30
35
40
45
50
Stry
ker
De
pu
y Sy
nth
es
Zim
me
r
Bio
met
Smit
h
Oth
er C
hal
len
gers
Stem Cup Head Liner
Stryker22%
Depuy17%
Zimmer23%
Biomet17%
Smith 9%
Challengers
12%
Depuy-Synthes & challengers make
more outsourcing than home-made.
Liners &heads are often made
in-house
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
15
TUTORIAL Contract Manufacturing
June 2015
Knee machining & finishing:
Home-made & Contract manufacturing
4 7 3 2
19
51
45
21
14
40
35
21
12
32
0
20
40
60
80
100
120
140
Stryker Depuy Zimmer Biomet Smith OtherChallengers
Insert
Tibial
Femoral
MU
S $
Contract Manufacturing208 M US$
Stryker20%
Depuy27%
Zimmer27%
Biomet16%
Smith 8%
Challengers2%
Home-made654 M US$
Except for challengers, knee machining is made massively
in-house (because the femoral knee is casted
in-house)
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
16
TUTORIAL Contract Manufacturing
June 2015
Spine & trauma machining & finishing:
Home-made & Contract manufacturing
20
101
5 751
198
6
7
4
12
8
10
5
17
46
5
11
71
128 15
8 33
119
0
50
100
150
200
250
300
350
400
450
Trauma srews & others
Trauma internal plates
Spine cervical screws & cages
Spine cervical plates
Spine Lumbar
MU
S $
Contract Manufacturing891 M US$
Stryker10%
Depuy-Synthes
47%
Zimmer5%
Biomet3%
Smith 4%
MDT27%
Challengers4%
Home-made1 356 M US$
Spine & Trauma machining & finishing plates, screws, cages, hooks, … are the first
orthopaedic component supplying
in value!Medtronic & Depuy-
Synthes make the main part in house
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
17
TUTORIAL Contract Manufacturing
June 2015
Instruments machining & finishing:
Home-made & Contract Manufacturing
61 7456
2238
61
95
134
119
23
66
99
12
22
5
9
4022
14
9
14
45
0
50
100
150
200
250
300
Trauma
Spine
Knee
HipM
US
$
Contract Manufacturing1043 M US$
Stryker9%
Depuy-Synthes
31%
Zimmer7%
Biomet26%
Smith 5%
MDT17%
Challengers5%
Home-made316 M US$
Hip & Knee Instruments are
massively outsourced except for Biomet (In-
house Chinese production)
For Spine & Trauma, Depuy-Synthes &
Medtronic making in-house
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
18
TUTORIAL Contract Manufacturing
June 2015
Cases & trays:
Home-made & Contract Manufacturing
13 17 13 8 9 11
29
4340
24 2225
6
14
1
17
17
18
38
5
8
19
0
20
40
60
80
100
120
Trauma
Spine
Knee
HipM
US
$
Contract Manufacturing405 M US$
Stryker16%
Depuy-Synthes
0%
Zimmer14%
Biomet0%
Smith 9%
MDT5%
Challengers
56%
Home-made15 M US$
Cases & Trays is an exclusive outsourcing market (> 95%). Very few challengers have
their in-house production
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
19
TUTORIAL Contract Manufacturing
June 2015
Coating: Home-made & Contract Manufacturing
6
3530
4 5
14
3
3
3
20
21
9
1
6
6
1
6
0
10
20
30
40
50
60
70
Tibial
Femoral
Cup
Stem
MU
S $
Contract Manufacturing180 M US$
Stryker36%
Depuy-Synthes
5%
Biomet25%
Smith 25%
Challengers9%
Home-made78 M US$
The OEMs making in-house often the monolayer & non-complex coating. Zimmer & Depuy-Synthes outsource almost all.
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
20
TUTORIAL Contract Manufacturing
June 2015
Ceramics: Contract Manufacturing
28
37
30
1721
19
10
17
13
8
9 11
0
10
20
30
40
50
60
Stryker Depuy Synthes Zimmer Biomet Smith Challengers
Hip Liners
Hip Heads
MU
S $
Contract Manufacturing220 M US$Almost all the
Ceramics are outsourced. One company supply > 90% of this market.
Source: Avicenne 2015
Ali MADANIPhone: + 33 1 47 78 46 00
21
TUTORIAL Contract Manufacturing
June 2015
MPS: Home-made & Contract Manufacturing
3%48%
9%11%
2%
Stryker Depuy-Synthes Zimmer
Biomet Smith MDT
Challengers
Home-made
Source: Avicenne 2015
Contract Manufacturing
153 0 3 3 0
182
0
1411
40 3
34
46
16
1
70
75
0
20
40
60
80
100
120
140
160
Hip Knee Spine Trauma
MU
S $
274 M US$278 M US$ Except for Stryker, the MPS is made mainly in house by the Majors.
Ali MADANIPhone: + 33 1 47 78 46 00
22
TUTORIAL Contract Manufacturing
June 2015
Volume of Raw Materials used in hip, knee
spine and trauma
0 1000 2000
Stainless steel implants
Stainless steel instruments
CrCo casted
Ti
CrCo machined
In tons
Hip Knee Spine Trauma
Stainless steel is the most used materials: 2 400 Tons to manufacture
instruments & 750 Tons for implants. Titanium is used for 1 500 Tons.
Source: Avicenne research & analysis 2014
300T
1 500T
1 335T
2 400T
750T
Ali MADANIPhone: + 33 1 47 78 46 00
23
TUTORIAL Contract Manufacturing
June 2015
Orthopaedic Raw Materials market for hip,
knee, spine and trauma
Hip
Knee
Spine
Trauma
In tons
Stainless steel implants Stainless steel instruments CrCo casted Ti CrCo machined
Hip and knee represent 76% of the total raw materials needs in volume.
Source: Avicenne research & analysis 2014
1 100T
400T
2 800T
2 000T
Ali MADANIPhone: + 33 1 47 78 46 00
24
TUTORIAL Contract Manufacturing
June 2015
OEM needs: example of STRYKER, summary
204
10
7
27
39
23
40
135
378
224
CrCo casted
CrCo (not incl.Casting)
Stainless steelimplants
Stainless steelinstruments
Titanium
In-house Contract Manufact.
In Tons
Source: Avicenne research & analysis 2014
Ali MADANIPhone: + 33 1 47 78 46 00
25
TUTORIAL Contract Manufacturing
June 2015
Orthopaedic contract manufacturing & home-
made in 2014
Source: Avicenne 2015
2.4
3
1.3
0.6
0.4
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
Contract Manufacturing Home made
Cases & trays
Instruments
Implants
Cases
ImplantsM
US
$
4.1 BUS$
Instruments
3.6 BUS$
2014
The Contract Manufacturing grew, the home made stable between 2012-2014
Ali MADANIPhone: + 33 1 47 78 46 00
26
TUTORIAL Contract Manufacturing
June 2015
Orthopaedic contract manufacturing & home-
made costs in 2012
Source: Avicenne 2015
2.1
3
1.2
0.6
0.4
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Contract Manufacturing Home made
Cases & trays
Instruments
Implants
Cases
Implants
MU
S $
3.7 BUS$
Instruments
3.6 US$
2012
The Contract Manufacturing grew, the home made stable between 2012-2014
Ali MADANIPhone: + 33 1 47 78 46 00
27
TUTORIAL Contract Manufacturing
June 2015
Contract manufacturing market value chain
Hospitals &
Clinics
Orthopaediccompanies
OEM
Revenues in 2014:
37.4 B US$
6 majorsFew 10 big challengersFew 100 little size competitors
Co
ntr
act
Man
ufa
ctu
rers
Implants
2.4 B US$
Instruments
1.3 B US$
Cases & Trays
0.4 B US$
Ali MADANIPhone: + 33 1 47 78 46 00
28
TUTORIAL Contract Manufacturing
June 2015
Orthopaedic Contract Manufacturing by
customers in 2014 ( M US$)
Source: Avicenne 2015
424 446
209 58
245
69
910
242 305
231
66
138
14
333
66
112
60
38
39
17
73
0
200
400
600
800
1 000
1 200
1 400
Cases & trays
Instruments
Implants
MU
S $
Challengers accounting for 1.3 B US$ contract manufacturing revenuesDepuy-Synthes with 860 M US$ and Stryker with 730 M US$ following
Ali MADANIPhone: + 33 1 47 78 46 00
29
TUTORIAL Contract Manufacturing
June 2015
Heavy trend, market concentration:Contract Manufacturers worldwide revenues in 2014 (in M US$)
Source: Avicenne 2015
0 50 100 150 200 250 300 350
MU
S $
Top 15 made
< 40% of the orthoContract
Manufact.market
440M US$
* Avicenne estimation
*
*
*
Ali MADANIPhone: + 33 1 47 78 46 00
30
TUTORIAL Contract Manufacturing
June 2015From 101 to >1000:
1700 M US$
Average < 2 M US$
Top 17-100: 600 M US$
Average: 7 M US$
Top 16: 1800 M US$
Average: 114 M US$
Contract Manufacturing competitor ranking
& dispersion
Source: Avicenne 2015
15%
40%
45%
N°16
N°100
22MUS$
2.3 MUS$
Ali MADANIPhone: + 33 1 47 78 46 00
31
TUTORIAL Contract Manufacturing
June 2015
Heavy trend: The OEM facility disinvestments
Dec.
2007
Intech acquired Wright Medical facility in Toulon, France
Feb.
2008
Sandvik acquired Medtronic facility
in Memphis, USA
Feb.
2008
Greatbatchacquired Depuyfacility in Chaumont, France
Sept.
2010
Lisi acquired the Stryker facility, Herouville, France
Dec.
2007
Symmetry acquired DepuyFacility in New Bedford, USA
Feb.
2012
Symmetry acquired J&J surgical instruments
business
Even though it is
being accomplished
step by step, OEM
facility
disinvestments is a
heavy trend.
Ali MADANIPhone: + 33 1 47 78 46 00
32
TUTORIAL Contract Manufacturing
June 2015
The risk of moving to LLC by 2020: Developed
countries & Low Labor Cost countries
Source: Avicenne 2015
Generic orthopaedicinstruments
Massively outsource In LLC
Complexes & customized
Orthopaedic instruments
Massively outsource
Stay in USA & Europe
Implants forging & casting
Stay in USA & Europe
More outsourcing for the Majors
Implants hip & knee machining
Trend
by 2020
Spine & trauma implants machining
Few % go to the major OEM facilities in LLC
Depuy-Synthes & Medtronic will stay in house. Other players outsource more and more in LLC
Level of moving
to LLC
Ali MADANIPhone: + 33 1 47 78 46 00
33
TUTORIAL Contract Manufacturing
June 2015
Contract Manufacturing market historical
revenues & forecasts (M US$)
Implants will grow more rapidly than the instruments & cases &
trays.
Source: Avicenne research & analysis 2013
866 963 1 082 1 206 1 099 1 158 1 245 1 221 1 275 1 330 1 391 1 455 1 522 1 592 295 325 360 400 350 370 390 377 391 405 423 441 461 481 1 230
1 358 1 530
1 717 1 808 1 904 2 055 2 130 2 243 2 362
2 506 2 659
2 821 2 993
-
1 000
2 000
3 000
4 000
5 000
6 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Instruments Cases & Trays Implants
CAGR 2005-2018 : 5.9 %
Implants : 6.1 %
Cases : 4.4 %
Instrum.: 4.6 %
M U
S$
CAGR 2014-2018
Ali MADANIPhone: + 33 1 47 78 46 00
34
TUTORIAL Contract Manufacturing
June 2015
Summary (1/2)
To manufacture the implants, instruments & related products, the orthopaedic companies in 2014 spent, 3.6 B US$ in-house and paid their contract manufacturers 4.1 B US$.
In the orthopaedic Contract Manufacturing market, Depuy-Synthes is the n°1 customer. Depuy-Synthes, accounted for 860 M US$ followed by Stryker (730 M US$) , Zimmer (500 M US$) and Smith & Nephew (420 M US$).
Biomet spent only 160 M US$ and Medtronic 100 M US$ because their manufacturing strategy is mainly oriented to in-house made. All the challengers accounted for 1.3 B US$ due to their higher rate of outsourcing.
Instruments are the largest segment, with revenues of 1.3 BUS$ for the contract manufacturing followed by spine & trauma machining (890 M US$) and cases & trays (405 M US$). Forging contract manufacturing accounted for 400 M US$ & casting for 152 M US$.
OEMs are requiring their Contract Manufacturers to reduce costs and sometimes to follow them to certain LLC countries to set up facilities there.
Ali MADANIPhone: + 33 1 47 78 46 00
35
TUTORIAL Contract Manufacturing
June 2015
Summary (2/2)
The Majors want to drastically reduce the number of their Contact Manufacturers. The response to this need is Contract Manufacturing market concentration.
The risk of moving to LLC countries will be mainly limited to Generic instruments and spine & trauma implants machining.
Even though it is being accomplished step by step, OEM facility disinvestments is a heavy trend.
Contract manufacturing market benefits from the main orthopaedic drivers, population ageing and product mix evolution. It also has its intrinsic drivers: OEM implants facilities disinvestments and the challenger’s market share growth, which is drastically impacting this market, due to their high outsourcing rate.
By 2018, the contract manufacturing market will grow faster than home-made.
Contract manufacturing remains a robust market with 5.5% CAGR by 2018. Implants will grow more rapidly than instruments and cases & trays.