Frost & Sullivan: Lucrative Profits in Store for the U.S.
Refractive Surgery Device Market
MOUNTAIN VIEW, Calif., Nov. 23 /PRNewswire/ -- For those who have not been blessed with the clarity of 20/20 vision, laser eye
surgery has proven to be a godsend. Since receiving FDA approval in 1996, the revolutionary LASIK (Laser In Situ Keratomileusis)
procedure has skyrocketed to enormous heights of popularity. LASIK has transformed the refractive surgery device market, and
companies are cheering all the way to their banks.
According to a new strategic research study by Frost & Sullivan (www.frost.com), U.S. Refractive Surgery Devices Market, this market
will experience unprecedented growth in the next few years. In 1998, the U.S. market for refractive surgery devices was $63.8 million,
and it is expected to grow an astounding 72 percent in 1998-99. The increase in LASIK procedures will lead to increases in sales of
excimer lasers, microkeratomes and blades. In particular, blade sales have been gaining tremendous market shares and revenue growth
since 1996 due to the requirement of replacing a new blade for each patient undergoing the LASIK procedure.
The entrance of two new devices, intrastromal corneal ring segments (ICRS) and phakic intraocular lenses (IOLs), are expected to cause
major stirs in the market. Laser-based eye surgery will face stiff competition from both technologies. ICRS are expected to gain FDA
approval by late 1999, and are likely to enter the market in 2000. ICRS have the advantage of being reversible. However, the present
generation technology is not suited to the treatment of astigmatism.
Phakic IOLs will enter the market in 2001-2002. Like the ICRS technology, implantation of phakic IOLs is reversible. More importantly,
phakic IOLs address a segment of the market where laser surgery falls short: patients with high levels of refractive error. However,
phakic IOLs can result in higher risks of cataracts and glaucoma. According to Frost & Sullivan Medical Analyst Sharmila Shankarkumar,
''Many researchers and managers at leading firms strongly believe that the future of refractive surgery lies in phakic IOLs. Bausch &
Lomb acquired all three technologies for all three procedures (lasers, corneal rings and phakic IOLs), and decided to pursue lasers and
IOLs. Such strategic decisions reflect the beliefs that major participants have about the success of different technologies.''
Major trends in the market include companies adopting aggressive marketing techniques in order to gain market share. For example,
Bausch & Lomb (the market leader) is under pressure due to an excess demand for microkeratomes. They recently announced that they
have a back-log of six to nine months of orders. Competitor Moria has taken advantage of this situation by propositioning those on
Bausch & Lomb's waiting list.
Competition is expected to heat up in the next few years due to the entry of several new firms hoping to reap generous profits from this
lucrative market. New entrants in the refractive surgery market include laser market leaders like Nidek and Coherent, and smaller firms
like Ophtec. Well-established firms, such as Alcon and Allergan, are carefully watching small entrants with pioneering technologies to see
what proves to be most successful in the market. According to Shankarkumar, ''These smaller firms are ripe targets for acquisition.
Mergers and acquisitions provide established firms with access to new technologies which the market has approved. Summit
Technology's acquisition of Autonomous Technologies and Alcon's alliance with Medjet are examples of the manner in which established
firms seek new technologies.'' Furthermore, Bausch & Lomb's acquisition of Chiron Vision and Storz Ophthalmic gave Bausch & Lomb
access to all the leading devices.
Market participants include: Aesculap-Meditec, Autonomous Technologies Inc., Bausch & Lomb Surgical, Coherent Medical Group, Eye
Tech Ltd., Eye Technology Inc [OTC BB:EYTC - news], Herbert Schwind GmbH and Co., Innovative Optics, Inc, International Vision
Inc., IntraLase Corporation, KeraVision, Inc, LaserSight Technologies Inc., Mastel Precision Surgical Instruments , Med-Logics, Inc,
Medjet Inc. [OTC BB:MDJT - news], Micra USA Inc., MicroOptix, Moria SA, Nidek Inc., Novatec Laser Systems Inc, OPHTEC USA,
Inc., Ophthalmic Innovations International, Ophthalmic Technologies Inc., Refractive Technologies Inc., STAAR Surgical Company,
Summit Technology Inc. [Nasdaq:BEAM - news], Sunrise Technologies Inc., Visijet Inc., VISX Incorporated [Nasdaq:VISX - news], ,
Advanced Corneal Systems Inc., Alcon Laboratories Inc., Allergan Inc. [NYSE:AGN - news], Howard Instruments Inc, Microtech Inc.,
Ophthalmic Innovations International, Pharmacia Ophthalmics Inc., and Refractec, Inc
Frost & Sullivan is an international marketing consulting company that monitors the medical industry for market trends, market
measurements, and strategies. The ongoing research is utilized to update a series of research publications such as #5672-57, U.S. General
Surgery MIS Products Markets to support industry participants with customized consulting needs.
For more information, visit the web site: frost.com |
