Baby Boomers Go 'Bionic': Body Replacement Devices Soar in Popularity

Many of us old enough to recall the 1970s TV show "The Six Million Dollar Man" know it was about a guy severely injured in a plane crash who was subsequently "rebuilt" in a high-tech, clandestine medical procedure costing six million dollars.

In the show, the main character's right arm, left eye and both legs were replaced by "bionic" body parts that enhanced his strength, speed and vision far beyond that of mortal humans.

Back then it was practically all fiction, but today cardiac implants, joint replacements and other "bionic" limbs and devices are readily available. And according to a recent ChangeWave survey they're increasingly popular - particularly with baby boomers.

ChangeWave's February survey of 148 doctors involved with "bionic" devices, looked at current and future demand trend for joint replacements, cardiac implants and other types of body repair and correction medical products.

"Bionic" Boomers

Today, when a limb or organ no longer functions as it should, one increasingly popular option is to replace it with a "bionic" device.

We asked our panel of doctors which types of devices will experience the largest growth in demand over the next 12 months. Little wonder, with the aging of the baby boomers, that one-in-two (50%) believe that it's Joint Repair/ Replacement devices.

"I'm old enough to remember the 1970s TV show The Six Million Dollar Man," said Tobin Smith, founder of ChangeWave and editor of ChangeWave Investing. "And while we aren't quite there yet in terms of bionic technology, the fact that many aging baby boomers are looking for knee and hip replacements translates into big gains not only for the technology in general, but also for the companies specializing in this sector."

Which companies are expected to benefit most from this growth in demand for bionics? Joint Replacement manufacturers Stryker (SYK) (27%) and Zimmer (ZMH) (20%) were two of the top firms mentioned, along with cardiac device maker Medtronic (MDT) (27%).

"Medtronic recently purchased multiple patents and technology from Biophan Technologies with regards to MRI-safe pacemaker and pacemaker leads," according to respondent WPW6938. "Aging baby boomers that require pacemakers and defibrillating implants will benefit from devices that also allow for MRI scanning to be done."

Manufacturers Stryker and Zimmer offer a variety of custom products and solutions that help to simplify joint replacement surgeries. They are well positioned to capitalize on the growing momentum for bionic devices. As respondent MAG02539 points out, "Joint replacement solutions are becoming more specific for the patients' particular problem, requiring less complicated surgeries."

New Medical Breakthroughs

Which types of devices are most likely to experience new technology breakthroughs over the next 12-24 months?

Joint Repair/Replacement Devices (31%), along with Prosthetic Limbs (30%) head up the list of devices most likely to experience technology breakthroughs going forward.

Dental Implants (25%), Vision Correction Devices (23%) and Back/ Spine Repair & Replacement solutions (21%) also received significant mention.

In another big positive for the growth of "bionic" devices, 31% of doctors think insurance companies and other payors will be More Willing to reimburse healthcare providers for these devices over the next 12 months. Only 18% think they will be Less Willing.

So, is the baby boomer generation set to go "bionic"?

Yes, according to the ChangeWave survey results. And not only won't it cost six million dollars, but insurance companies appear increasingly willing to pick up the tab.

Jim Woods co-wrote this article.

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This article summarizes the results of a recent ChangeWave Alliance survey. The Alliance is a research network of 15,000 business, technology and medical professionals who spend their everyday lives working on the front line of technological change. For more info on ChangeWave, or to sign up for real-time alerts email on the hottest technologies and companies, click here.

Comments

[yape]

Your missing one important step prior to going 'bionic'. Total knee and shoulder replacements are always the last reosrt for the patient. The first course of action is the scope with some type of tissue repair. Companies that make these types of tissue repair devices are growing at an incredible pace, Arthrocare (artc) is the perfect example. Unfortunately, most of these companies are still privately held. But, if they ever go public, watch out for companies like Arthrex and Biomet. The only other public company, that I know of, that deals with sports med is Smith and Nephew (SNN), earnings out next week. SNN is a more complete sports medicine company than Arthrocare offering the arthroscopists a full bag of products to use. I expect that SNN will turn in a great quarter and these companies will continue to explode.

[NEH]

Does anyone have a comment about the role of laboratory designed "tissues" that often play a role in the kinds of repairs/replacements discussed above? That's an area that has always intrigued me.

[yape]

There are several companies that offer a tissue type patch, Pegasus, Biomet, Ace depuy. And then there are the companies that have a tissue bank. These companies offer harvested tissue, ligaments, and tendons. Cryolife and lifenet are just two of them. All of these products do very well in the market place. Unfortunately, most of these companies are private or are wrapped up in a larger company, ex. Ace depuy is a Johnson and Johnson company.

Orthovita (vita) is a company that is public and is set to announce soon. This company has a great bone filler product with a great looking pipeline.

As far as what role these tissue play in the repair, they would play little to no role in a total joint surgery. At most some bone filler may be added to provide some additional support. During a cuff repair the arthroscopists always trys to perserve the patients natural tissue. If this is not possible then they will sew a patch onto the tissue. This works just like when your mom had to patch your jeans because the hole was to big to fix. The tissue will then incorporate itself with the patients and either become the patients or it will bridge the gap long enough for the patients own tissue to fill in the void. Works about 60-70% of the time.

This tissue banks are where the real upside is. These places provide the actual acl tendons, harvested bone filler, harvested bone, ligamets, you get the idea. Huge market for this and prices are outrageous.

[NEH]

Thank you very much for this analysis, yape. I will investigate further.