Frost & Sullivan: Western European Markets Confirm Undisputed Convenience and Cost Benefit of Custom Procedure Trays

LONDON, December 8 - Custom Procedure Trays (CPT) offer off-the-shelf convenience to
hospitals, reduce costs and lead to more efficient operating rooms (OR) with
faster turnaround times. The general market opinion is that once hospitals
have converted to CPT, they will never convert back. Many existing customers
have not only experienced the convenience of using custom packs, but have
also come to realise the true cost-benefit of these trays. Customers are
dependent on continued supply of custom packs to run an efficient OR and the
loyalty of these customers will continue, even amidst difficult economic
times.

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New analysis from Frost & Sullivan (www.medicaldevices.frost.com),
Western European Markets for Custom Procedure Trays, finds that the OR CPT
market earned revenues of US$261.3 million in 2008 and estimates this to
reach US$776.4 million in 2015. The following technologies are covered in
this research: angiography CPT, ophthalmology CPT, operating room CPT and
anaesthesia room CPT.

"Growth in the construction of private clinics, especially orthopaedic
clinics, will contribute to solid revenue growth rates in this market," notes
Frost & Sullivan Research Analyst Jolize Gerber. "Orthopaedic procedures have
a very high penetration level of CPT due to the fact that orthopaedic
surgeries require many components. This fact, coupled with the need for speed
and a sterile environment, has facilitated the rapid adoption of trays."

General surgery and cardiovascular surgery are further considered to be
high-growth areas for OR CPT.

The enforcement of stricter infection-control measures has, in recent
years, caused many central sterile supply departments (CSSD) in hospitals to
close down. This has greatly benefited the uptake of CPTs.

"CPTs ensure compliance with safety standards set by the Medical Device
Directive, as well as contribute to the reduction of any nosocomial and
iatrogenic infections in the OR," says Gerber. "Clinical studies have proved
that CPTs can reduce infection rates by as much as 11 per cent."

The uptake of OR CPTs has been greatly driven by this factor as the
prevention of intra- and post-operative wound infections is an essential
requirement during surgery. Nosocomial infections can extend a hospital stay
by several days, even in the most favourable scenarios, and constitute an
additional cost factor for insurance companies. The use of CPTs subsequently
limits costs to hospitals by ensuring compliance with safety standards and
lowering the risk of infections.

Combating pricing pressures and maintaining profitability is one of the
main challenges in this market. The prices of custom procedure trays reduce
by an average of three per cent annually.

Increased competition in the market and stricter price controls from
procurement entities are leading to greater price sensitivity in the market.
Furthermore, global economic instability adds to the rising costs of
production and transportation, making it difficult to maintain profitable
margins.

"This poses a challenge to CPT providers in terms of controlling their
costs whilst simultaneously offering a customised solution, catering to
individual end-user requirements," remarks Gerber. "CPT providers will have
to find a 'sweet spot' between customising trays according to end-user
preferences and standardising trays to keep control of their own costs."

Customising each component of a pack according to end-user preference
becomes capital intensive and creates difficulties for a company's cash flow.
One way to address this problem is by standardising basic commodity items in
packs. Furthermore, procuring or outsourcing the production of non-woven
components and basic commodity items from more affordable sources in China
and Asia Pacific can also assist in lowering costs.

"Although these efforts might take the pressure off companies for some
time, it will not be sustainable," cautions Gerber. "CPT providers will
subsequently have to become more pro-active at offering a pack design as
opposed to costing a design that the customer proposes. Herein lies
significant cost reduction potential for the customer while also assisting
pack providers."

If you are interested in a virtual brochure, which provides a brief
synopsis of the research and a table of contents, then send an e-mail to
Katja Feick, Corporate Communications, at katja.feick@frost.com, with your
full name, company name, title, telephone number, company e-mail address,
company website, city, state and country. Upon receipt of the above
information, a brief brochure will be sent to you by e-mail.

Western European Markets for Custom Procedure Trays is part of the
Medical Devices Growth Partnership Services programme, which also includes
research in the following markets: European Urinary Incontinence Devices
Market, Eastern European Advanced Wound Management Market and European
Markets for Bone Grafts and Bone Cements. All research included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.

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    Western European Markets for Custom Procedure Trays
    M428

    Contact:
    Katja Feick
    Corporate Communications - Europe
    P: +49(0)69-7703343
    E: katja.feick@frost.com
    www.frost.com

Katja Feick, Corporate Communications - Europe, Frost & Sullivan, +49(0)69-7703343, katja.feick at frost.com