Strategic markets
The opioid crisis is driving R&D and introducing new products to manage pain without pharmaceuticals
The Pain Management Market (pain drugs and devices) industry is a growing, global market with an estimated size of $36.1Bn in 2017. The industry serves patients, doctors, hospitals, and other healthcare facilities worldwide in a multitude of pain management cases. These include pain caused by cancer, surgery, post-surgery and many additional pain management cases. The pharmaceutical drug channel of the industry is dominated by manufacturers of existing painkillers, while the device channel is far more fragmented without a core, dominating player. Such devices are used to manage a multitude of bodily pains associated with treatments to reduce or eliminate pain. The devices have become especially useful for managing surgical pain, migraine related pain, dental pain and any general pain, increasing in popularity amongst aging populations.
Neos Equity Group believes that the Pain Management industry is primed to grow at a rapid pace, specifically in the non-drug sector. This device-specific growth is driven by many tailwinds but will largely be due to the increasing reliance on prolonged use of painkillers and a greater consumer understanding of pain killer side-effects leading to the growing use of device-based pain management therapies.
We believe this trend will continue as the federal government places more scrutiny on manufacturers of painkillers and prescribing doctors. Additionally, economic factors play a significant role in the management of financial implications for hospitals. Post-surgical pain is one of the primary focuses of hospitals, where the cost of monitoring and the treatment of adverse effects creates major demand for pain management devices. Advancements in device technology along with the others mentioned will drive the industry for years to come.
Key Industry Insights:
- Pain Management Industry $36.1 bn in 2017
- 2017-2022 CAGR 7.6%
- Industry Leaders: NYSE: ABT; NYSE: BDX; NYSE: BSX; NYSE: BAX
Neos Equity Group intends to execute a portfolio “roll-up” strategy of Pain Management Medical Device businesses in this highly fragmented industry and leverage Neos’ executive team expertise in the healthcare industry. NEOS will target businesses with gross revenue between $5mm - $25mm.
If you are interested in selling your Pain Management Medical Device business, please feel free to contact us to set up a meeting and discuss at info@neosequitygroup.com.
