However irksome it may be to think about open or healing wounds, the medical advances and market potential in this niche space is quite appealing for investors. Globally, there are 50 million reported cases of patients suffering from some type of wound that may be difficult to close or heal.
With the current state of the U.S Healthcare system, the cost of wound care has been too burdensome. In effect, many Centers for Medical and Medicaid Services have changed the reimbursement policy for wound care and now provide incentives for hospitals to effectively and efficiently improve care and reduce costs.
Wound care encompasses successfully repairing superficial damage to the skin such as a laceration or puncture as well as deeper damages that affect underlying structures such as bone, muscle, arteries, and nerves. Careful measures need to be taken in order to prevent further complications when managing a wound.
Traditional wound care has consisted of products such as dry dressings or bandages, however; advanced wound care products now consist of alginates, hydrocolloids, and even collagen. Active wound care products include skin substitutes and biological growth factors, while the therapy device market consists of NPWT (negative pressure wound therapy), HBOT, Whirlpool therapy, and others.
According to Kalorama Information, the wound care market potential was about $16.8 billion in 2012 and is predicted to rise 25% by 2015.
Similar to any product, there are always challenges and obstacles that are faced along the way. Challenges that have come across in the wound care market include the debated effects of antibiotics and whether they are slowing down or speeding up the healing process. Moreover, what is considered to be the appropriate wound dressing, which varies by case and by price.
Within the next few years, innovative improvements are predicted to proliferate the market and to standardize the wound healing with products such as negative pressure wound therapy to speed up the healing process and avoid fluctuations in price per case.
Major players in the wound care market include, Kinetic Concepts, Smith and Nephew, ConvaTec, Molnlycke Healthcare, and Systagenix. Several of these companies have made a dominating impact and currently make up 60% of the market. Even companies that do not traditionally invest in the wound care market such has Bayer, witnessed a $52 billion turnover and have now announced an interest.
The first step to improving the market, however; will be to spend time and money in R&D to develop more efficient treatments and meet the market needs with reliable and consistent results.
An emerging company that is coming to light in the wound care market is DermaLOC: a remarkably easy and painless way to close cuts and wounds and achieve a professional, cosmetic result. With this product, one does not need to make overly expensive trips to the emergency room anymore. DermaLOC produces wound eversions with an easy “do it yourself method.”
“There is no question this product is safe and easy enough to go right to the home use market. DermaLOC represents a huge timesaving to my business because I can achieve an outstanding and quicker outcome with DermaLOC without spending a lot of time focusing on fine suture technique. This wound closure product provides cosmetic outcome which is of great value and is premium to my outpatient practice,” said Dr. Ronald Zelnik, MD a Surgical Specialist & Director at the Laser and Surgicenter in Palm Beach Gardens, Florida.
The advanced and active device-based wound care management areas are experiencing growth and innovation which is helping to push down the barriers to growth in this industry and creating solutions to emerging market needs. Investors can learn more about the wound care market, DermaLOC, and many other opportunities at the upcoming OneMedMarket Conference on May 21st 2014 in New York City.