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of public spending, have led to strong pressure on prices in that
segment where LISI MEDICAL is trying to strengthen its presence.
But this market is less mature than the other, rather premium,
ones, where one can observe some form of technological
standardization. As for the extremities and traumatology segment,
it confirms its dynamism: its growth, at 7% in 2011, is mainly
due to the reliability of implants (survival rate or improvement
of the implantology performances), made possible thanks to the
technical improvements offered by a large number of players and
now available to most people.
A very strong growth potential
Markets of North America, Europe and Japan currently amount
for almost 80% of the total market value, while they represent
less than 20% of the world population. These proportions give
a measure of the considerable growth potential of the world
market of orthopaedics. It should remain one of the fastest
growing medical device markets, driven by structural effects
related to changing demographics and the aging population in
major developed countries. Although projections by 2015 show a
slight decline in the growth rate of the world population (1.1% per
year), it remains high for the 60+ age bracket (+3.2% per year). The
evolution of therapeutic solutions and practices, the marketing of
more reliable devices accepting a higher level of stress, can also
expand the potential target to younger populations, whose age is
between 40 and 60. An age bracket whose proportion should also
increase in the demographic profile of all countries of the world.
Developments favorable to LISI MEDICAL
These structural trends should maintain the demand at a relatively
high level during the next decade. Regarding the supply and the
industrial organization of the market, several factors militate today
in favor of the strong growth of outsourcing. Pressure on prices,
regulatory and technological constraints, changes in social policies,
combined with the concentration of commercial players (hospitals
and providers of implants) are actually encouraging distributors
to rethink their business model by outsourcing a growing share of
their activity. Most of them prefer subcontractors who are able to
manage both the production, but also to contribute their input to
research and development, and to handle all aspects – which are
extremely complex in the healthcare sector – related to control,
packaging and logistics. These developments confirm LISI MEDICAL
today in its positioning as a provider of industrial, technological
and logistic solutions.
Since 2010, the division has been working to refine its organization
to best respond to these market changes and seize the
opportunities created by regulatory changes to impose its strategic
differentiation to its customers. The integration strategy of LISI
MEDICAL Orthopaedics should help it win new business and
expand its customer base. The division’s improved performance is
a goal shared by the teams across all sites.
Optimization and
diversification of LISI MEDICAL
Fasteners U.S.
The year 2011 was marked by the recovery of the North
American site, whose market share increased sharply
at major local industry players. To limit the exposure
of the U.S. subsidiary to the dental market fluctuations
to which it was heavily exposed up to now, the product
portfolio has been diversified. Different Kaizen sites
(5S SMED), initiated in 2010, continued and significant
efforts were undertaken to improve the flexibility of the
production means, the versatility and multiple skills of
the U.S. teams.