Although the number of cerebral embolization procedures performed globally is fairly limited relative to many other interventions, the associated product sales are impressive: estimated at $1.75 billion globally in 2018, representing roughly $11,300 per procedure. These high outlays—which include not only the specialized coils, liquid embolics, flow diverters and stent-assisted coil devices but also the microcatheters, microguidewires, access devices, micro-occluding balloons and other devices employed ancillary to them—reflect two major factors. The first is the specialized “micro” nature of neuro-interventional products, which creates design and quality control challenges for manufacturers. The second is the limited number of procedures, which precludes the production economies of scale necessary to attract new suppliers and support competitive pricing. In essence, neurointerventional products carry premium prices because they are premium products. Even the fairly recent influx of new flow diversion products did not create downward pricing pressure in that segment as expected; rather, pricing increased slightly. Thus, we have not incorporated an expectation of downward pricing pressure into our forecast for cerebral embolization products as procedure volumes are not expected to reach a critical mass. Nevertheless, product sales are projected to increase at an 8.0% real annual rate through 2023 to $2.58 billion, representing nearly $12,000 per procedure.
Competitors covered in this analysis include:
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