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Issue: December 2011
December 2011 Company News:

Company News In Brief

Dehaier Medical Systems Ltd. annouced in June that it has become the exclusive distributor in North China of a sophisticated anaesthesia product manufactured by Penlon.

Dehaier Medical Systems has been designated by Guangdong Biolight Meditech Co., Ltd., (Penlon Ltd.’s exclusive distributor in China) as the exclusive distributor of Penlon’s Prima SP Anaesthesia System in North China. North China includes six provinces and the cities of Beijing, Tianjin, Hebei, Shandong, Shanxi and Inner Mongolia. The authorisation period runs through 2012.

Mr. Ping Chen, Dehaier’s Chief Executive Officer, said, “We are continuing to build our line of products and expand our offerings to our customers including hospitals, clinics and government health bureaus. Becoming the exclusive distributor of Penlon in North China is an important opportunity for our company that provides us with access to the $70 million per year market segment for foreign-made anaesthesia systems, thus doubling Dehaier’s addressable market for anaesthesia systems.”

Dehaier is currently a provider of Chinese-made anaesthesia systems, a market the company estimates is also around $70 million per year.

ConvaTec Continence and Critical Care division specialise in the development, manufacturing and distribution of single-use devices to hospitals and healthcare sectors around the world.

In line with the company’s strengthening of the Commercial Sales Division, an experienced manager, Ian Coulson has been selected to the new position of South East Regional Business Manger, responsible for a team of seven.

Ian Coulson is well qualified for his appointment to ConvaTec, having been in the healthcare arena for 20 years. Immediately prior to joining ConvaTec in February 2010, Ian was the National Sales Manager for KCI Medical. Before that he had a similar senior position in the private medical market in Australia.

His product experience includes therapy pumps, sutures, open surgical products and laparoscopic devices. In addition he has valuable business qualifications, including an MBA and Diploma in Management.

Commenting on his appointment, Ian Coulson said: “I am looking forward to growing with the company and helping to drive it forward. My first responsibility will be to ensure the team is well supported and performing according to plan. The opportunities here seem endless and there is a wide range of products to promote.”

He added: “ConvaTec certainly convinced me of the positive prospects at the company. So far, I can see the possibilities to perform on several fronts, and to date my training and induction has gone very well indeed.”

Medical device startup NeuroWave Systems Inc. has received the CE marking for its NeuroSense anaesthesia monitor, enabling the company to sell its first product in Europe.

The Cleveland Heights, Ohio company has been developing its brain-monitoring device since 2003 when it licensed the technology from co-inventor and now NeuroWave president, Tatjana Zikov.

“This is a big day for the NeuroWave Systems’ team as we have been working toward this goal for eight years,” Zikov said, “We are committed to developing innovative brain monitoring technologies for improved cerebral protection and patient outcomes.”

The NeuroWave system acquires and displays electroencephalogram signals from both sides of the front part of the brain. Monitoring both sides of the brain is important for detecting anaesthesia-related pathologies, such as stroke, that can affect only one part of the brain.

The system quantifies brain activity in patients undergoing general anaesthesia or sedation. It also qualifies this information by providing real-time feedback on both cerebral hemispheres. In this way, NeuroSense could improve patient safety and outcomes during anaesthesia.

“Our system represents a next generation of monitors for depth of anaesthesia and sedation.”

Brain function monitors are not yet the standard of care, Zikov said. “The benefits of these monitors have been widely publicised. We would be on a good path if these, indeed, become standard of care in years to come.”

The market for brain wave-monitoring devices used during anaesthesia is estimated at more than $1 billion a year and growing, according to Cleveland Medical Devices.

“The NeuroSense Monitoring System has been in use for clinical research in Europe for the past three years,” Bibian said. “We welcome this opportunity to market and sell our system in markets where CE Mark is recognised.”

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Company News Items Listing

Masimo Enters Anaesthesia Monitoring Market With SEDLine Buyout
 Masimo recently announced that it has acquired SEDLine, Inc., a...

Resurgence In Medical Imaging With A Rise In Utilisation
 The medical imaging market is expected to recover from the adverse...

The Future of Anaesthesia and Respiratory Devices
 The global anaesthesia and respiratory devices market is forecast to...

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News Items

Masimo Enters Anaesthesia Monitoring Market With SEDLine Buyout
Masimo recently announced that it has acquired SEDLine, Inc., a pioneering manufacturer of brain function monitoring. The acquisition of SEDLine formalises Masimo’s commercial entry into the brain function monitoring market – enabling the innovative SEDLine technology to become more widely available to clinicians in both U.S. and international healthcare markets. Terms of the acquisition were not disclosed.

Masimo Founder and CEO, Joe Kiani, stated, “Multiple leading hospitals in the U.S. have already chosen SEDLine because they believe, as Masimo does, that SEDLine’s technology and performance offers an advancement over other brain function monitoring technologies. Masimo has always been a strong advocate for innovation, patient care, and choice in the healthcare marketplace. We are happy to integrate SEDLine into our product pipeline to continue the Masimo tradition of offering groundbreaking noninvasive medical technologies that significantly improve patient outcomes and reduce the cost of care.”

Brain function monitoring has become a widely utilised modality for assessing depth of anaesthesia and sedation. Based primarily on analysis of the electroencephalogram (EEG), brain function monitors continuously measure the electrical activity of the brain and translate those changes to the level of consciousness. Brain function monitoring has been deployed in a variety of clinical environments including the operating room to manage depth of sedation, the intensive care units where patients can be sedated for prolonged periods, and for ambulatory units where large numbers of patients undergo short duration procedures.

Privately-held and backed with a financial investment from Masimo last year, SEDLine was formed with the mission to advance brain function monitoring to improve the care of patients under anaesthesia or sedation. SEDLine’s technology is based on ten years of innovation that delivers proven 4-channel EEG integrated algorithm performance, demonstrated reliability under challenging clinical conditions, and superior resistance to electrocautery1 – offering a cost-effective alternative to other brain function monitoring technologies.

Terri Monk, MD, Professor of Anesthesiology at Duke University Hospital, commented: “In my experience, SEDLine monitors provide valuable and reliable clinical information that helps me to deliver optimal anaesthesia care. I am pleased but not surprised that SEDLine would become part of Masimo, as they both are technology-driven organisations committed to improving patient care.”

Leslie Jameson, MD, Associate Professor and Vice Chair, University of Colorado, Department of Anesthesiology added: “When I need processed EEG monitoring to optimise anaesthesia care in our operating rooms, I opt for SEDLine. The 4-channel EEG screen provides a diagnostic quality display that can be optimised for each patient. When combined with the DSA screen, the SEDLine is a very valuable tool to optimise anaesthetic management, particularly in certain patient groups. I look forward to seeing how Masimo will expand SEDLine’s technology platform to further enhance its already considerable clinical value.”

Masimo and SEDLine are in the process of developing a full integration plan and will provide details when they are finalised.

  1. 1. White PF, Tang J, Ma H, Wender RH, Sloninsky A, Kariger R . “Is the Patient State Analyzer with the PSArray2 a Cost-effective Alternative to the Bispectral Index Monitor During the Perioperative Period?” Anesth Analg. 2004;99:1429-1435.
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Resurgence In Medical Imaging With A Rise In Utilisation
The medical imaging market is expected to recover from the adverse effects of the economic downturn and the significant decline in reimbursement.

The drivers behind this reformation would be advancements in technology and new clinical applications for imaging modalities. While the ongoing economic slump continues to hinder businesses around the globe affecting key markets in the United States and Europe, countries such as India and others in the Asia Pacific are expected to come out unscathed. This is due to the demand for healthcare along with the increasing ability of the patient population to spend on improved health services in these regions.

New analysis from Frost & Sullivan finds that the market earned revenues of $5.73 billion in 2009 and estimates this to reach $6.55 billion in 2012. The market segments covered in this research include computed radiography and digital radiography (CR & DR), magnetic resonance imaging (MRI), computed tomography (CT), 3 dimensional (3D) and computer aided design (CAD), ultrasound, C-arms, imaging informatics, contrast media and auto injectors, mammography, molecular imaging and nuclear medicine.

“The medical imaging market is shifting towards integrated technology and hybrid systems with innovative developments such as radiation reduction and better temporal resolution,” says Frost & Sullivan Research Associate Simone Carron. “Radiation reduction is a growing trend across Europe and clinicians are looking at significantly optimising examination time.”

The factors considered during the purchase of medical imaging equipment are radiation dosage, throughput and speed of the exam. The increasing development is towards enhanced temporal resolution, which can provide clinically relevant structures and pathology rather than merely more data or slices.

Although healthcare is one of the least-affected sectors by the financial crisis, it experienced a setback in the flow of easy credit. Funding from government and central banks are subject to new regulations and rules to negate the chances of another downturn.

“The downturn also drives end-users to delay purchase of new equipment thereby lengthening product replacement cycle,” explains Carron. “This in turn is likely to necessitate vendors to provide long-term technology sustainability.”
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The Future of Anaesthesia and Respiratory Devices
The global anaesthesia and respiratory devices market is forecast to exceed $13 billion by 2016 with a Compound Annual Growth Rate (CAGR) of 9% from 2009-2016.

The market is expected to be driven by the huge patient population suffering from Obstructive Sleep Apnea (OSA) and Chronic Obstructive Pulmonary Disease (COPD) and the availability of medical devices to treat OSA and COPD.

Globally about 300 million people are suffering from OSA, the prevalence of which increases with age, reaching 30% to 80% in the elderly population. Currently, about 400 to 600 million people are suffering from COPD on a global basis with about 12 million patients in the US.

Respiratory devices accounted for 55% of the overall anaesthesia and respiratory devices market in 2009, making it the largest category. This category is forecast to reach 59% of the overall market by 2016. The global market for respiratory devices was valued at $4.2 billion in 2009, and is forecast to grow at a CAGR of 10% to reach $8.2 billion in 2016. The market is expected to be driven by reimbursement approval by the US Centers for Medicare & Medicaid services for CPAP devices based on home diagnosis of OSA, the patient population suffering from OSA and COPD and the increasing demand for low priced portable oxygen concentrators.

The demand for respiratory devices is expected to increase following growth in the home healthcare market. Rising healthcare costs are leading to more people getting treated at home and this provides impetus for growth for respiratory devices such as Positive Airway Pressure (PAP) devices, nebulizers, humidifiers and oxygen concentrators.

The US is the biggest market for anaesthesia and respiratory devices, contributing 49% towards the global market in 2009, and this contribution is expected to increase to 54% by 2016. The US market for anaesthesia and respiratory devices was valued at $3.7 billion in 2009, and is forecast to grow at a CAGR of 10% to reach $7.4 billion in 2016.

In 2009, the Chinese Government announced it was spending $125 billion in the healthcare sector over the next three years as part of its economic stimulus package. The spending includes expanding healthcare insurance coverage to 90% of the population. The money will also be spent on constructing 30,000 hospitals, clinics, and care centers and upgrading existing healthcare facilities.

In 2009, Draegerwerk AG & Co. KGaA, Covidien, GE Healthcare and Philips Respironics were the leading players in the anaesthesia and respiratory devices market with a combined market share of 42%. Draegerwerk AG & Co. KGaA and GE Healthcare dominate the anaesthesia machines market. Philips Respironics is one of the leading players in the respiratory devices market and Covidien is the market leader in the respiratory measurement devices market.

Source: GBI Research
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