Optimal pricing to win a $3.2 billion implantable cardioverter defibrillator market

Implantable cardioverter defibrillators (ICDs) monitor heart rhythms and deliver therapy to correct heart rhythms that are too fast and can lead to sudden cardiac arrest. According to GlobalData analysis, the ICD market was valued at $3.2 billion worldwide last year and will reach $4.4 billion by 2030, with a constant compound annual growth rate (CAGR) of 3.7% . GlobalData’s global brand pricing tool estimates brand-level sales prices (including discounts) for key products in key global geographies. This information would be very useful for detecting price changes, understanding the position of the competition in the market, suggesting sales strategies and planning ICD product launches.

The ICD market can be segmented into single-chamber ICDs, dual-chamber ICDs, and subcutaneous ICDs. A single-chamber ICD is connected to one chamber of the heart, such as the right ventricle. A dual-chamber ICD monitors electrical activity in two chambers of the heart. The subcutaneous ICD (S-ICD), also known as a leadless ICD, consists of an electrode and a pulse generator that works without the placement of electrical wires (leads) in the heart. The S-ICD has become the device of choice in patients with structural defects that could prevent the device leads from connecting to the heart. The average selling price (ASP) of the EMBLEM S-ICD, the leading brand of S-ICD, is nearly double that of regular single-chamber and dual-chamber ICDs.

Medtronic is the market leader for single-chamber ICDs, ahead of Biotronik, Abbott, and Boston Scientific. Since the acquisition of LivaNova’s heart rhythm management business, Chinese medical device company MicroPort is established to have the fifth largest market share. According to GlobalData’s global brand pricing tool, Medtronic has the highest ASP at over $14,000, while Biotronik, with a 22% market share, has the second highest ASP. This indicates that setting a lower price during an initial offer may not help market penetration and may alienate surgeons from competitors in this market.

Additionally, Medtronic launched its newest product, Cobalt XT, last year. Cobalt XT features BlueSync technology to deliver connected health, including the ability for clinicians to program the device through app-based remote monitoring, reducing potential exposure to Covid-19. As a premium brand in the ICD market, its ASP is 35% higher than the previous model, Cobalt. The global brand pricing tool will help market players optimize their pricing strategy if they plan to launch similar devices around the world.

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