Synex Korea Medical Device Market Report - Anti-Adhesion Products 2023

In 2022, the total market size of anti-adhesion products in Korea is estimated to be approximately USD *** million (manufacturers/importers' initial selling prices) and USD *** million (medical institutions' purchase prices).
While some estimates put the market size at around USD *** million for all therapeutic materials and drugs with anti-adhesion function or anti-adhesion effect, this report estimates the market size only for those two medical devices approved as (1) Adhesion barrier dressing (Product Classification Number B07070.14 Class 3) and (2) Biodegradable polymeric mesh (Product Classification Number B03330.04 Class 4).
The anti-adhesion product market is expected to grow at a compound annual growth rate of **% over the next five years from 2022, reaching a market size of approximately USD *** million in terms of manufacturers/importers' initial selling prices and USD *** million in terms of medical institutions' purchase prices in 2027.
It is estimated that out of around USD *** million (medical institutions' purchase prices) in 2022, approximately USD *** million was from the National Health Insurance reimbursement, and the remaining about USD *** million was from the patients' out-of-pocket expenses (non-reimbursement).
Currently, all postoperative anti-adhesion products are reimbursed (select reimbursement, out-of-pocket 80%), and only spinal epidural anti-adhesion products are the subject of non-reimbursement claims. Unlike other therapeutic materials, there is no known off-label use of anti-adhesions products since there is no separate reimbursement criteria.
The reimbursement volume for anti-adhesion products in 2022, USD *** million, is about ***% increase from USD *** million in 2021. In 2021 (approximately USD *** million), there was a sharp increase of ***% compared to 2020 (approximately USD *** million) which can be interpreted as the result of the implementation of the new National Health Insurance reimbursement system effective from January 2020.
It was the first year that postoperative anti-adhesion products on the NHIS reimbursement list could be billed for fully separate non-inclusive claims under the 7-DRG scheme.
With postoperative anti-adhesion products having been fully separately non-inclusive therapeutic materials for about three years (2020, 2021, and 2022), it is now expected that single-digit growth will continue in the near future rather than the double-digit growth from 2020 to 2022.
Looking at the 2022 reimbursement claims of the anti-adhesion products by medical department, general surgery is about USD *** million and obstetrics and gynecology is about USD *** million, accounting for about ***% of the total claims. The remaining ***% includes orthopedics about USD *** million, otolaryngology/internal medicine about USD *** million, urology about USD *** million, thoracic surgery about USD *** million, and neurosurgery about USD *** million.
In terms of the 2022 reimbursement claims of the anti-adhesion products by end-user type, tertiary-referral hospitals account for approximately USD *** million (***%), the largest portion of the total reimbursement volume (about USD *** million). This is followed by general hospitals about USD *** million (***%) and hospitals about USD *** million (***%).
One of the natures of the anti-adhesion products is that they are closely related to surgical operations. Therefore, among various types of medical institutions, the combined claims of tertiary-referral hospitals and general hospitals account for approximately ***% of the total claims.
In 2022, about *** products from *** manufacturers/importers are listed on the National Health Insurance of Korea. Major suppliers of the anti-adhesion product market include GC Biopharma, Dalim Tissen, Medtronic, Baxter, Samyang Biopharm, CGbio, Shinpoong Pharm, LG Chem, Genewel, BNC Korea, Cares, BMI Korea and Johnson & Johnson Medtech (in Korean-alphabetical order).
Among them, the combined market share of the top three suppliers (Genewel, CGbio and Shinpoong Pharm) accounted for about ***% of the total market, while the remaining *** suppliers accounted for about ***% of the market.
The market share of the top three suppliers is estimated as follows: Genewel (manufacturer of Guardix) about ***%, CGbio (manufacturer and supplier of Mediclore) about ***% and Shinpoong Pharm (manufacturer and supplier of Medicurtain) about ***%.
In terms of the physical state, the anti-adhesion product market is divided into film type, gel type and solution type, with the gel type accounting for more than ***% of the market share. The market can be also categorized by substances or size/dosage but this report does not cover them in detail since substances are not a differentiating factor.
The size and dosage along with the physical state of the product varies between medical deparments. Therefore, anti-adhesion product companies are supplying diverse products with different product types, substances, sizes and dosages to meet the diverse needs of end users through differentiated sales and marketing strategies.
The anti-adhesion product market of Korea began in the 1990s when film-type products such as Interceed and Seprafilm were introduced as non-reimbursement therapeutic materials.
On 1 April 2016, with the partial revision of "The National Health Insurance Service Reimbursement Therapeutic Materials & Maximums Formulary" therapeutic materials for the purpose of ‘postoperative adhesion prevention' were converted into reimbursement products (less than 100% out-of-pocket).
Subsequently, they were classified as products with differently applied out-of-pocket rates (80% out-of-pocket) within the limit of less than 100% of the reimbursement benefits, their usage considerably increased. As such, the market for anti-adhesion products is highly influenced by health insurance reimbursement policies, and they will continue to play a role in the future.
The anti-adhesion product market is expected to grow continuously at an average annual rate of **% for the next five years driven by the following factors. Competition between medical institutions for securing more hospital beds, aging population, increasing numbers of surgeries, laparoscopic procedures, obstetrics and gynecology treatments, spinal treatments, 7-DRG cases and subscribers of indemnity health insurance, growing public awareness of anti-adhesion products and changes in patient perception.
On the other hand, since the National Health Insurance Service determines the reimbursement price based on the phycial state, size and dosage of the product, it can be a restraint factor to the emergence or supply of anti-adhesion products attempting and/or utilizing a wider range of materials or substances.
The preference for existing products among the healthcare providers has been accumulated over a long period of time and it seems to be difficult to expect a change in the short term.
However, an interest in anti-adhesion products with new functions or better qualities for patients is substantially high among the healthcare providers, general consumers, and the indemnity health insurance companies.
Therefore, it can be said that potential demands and unmet needs are also high as well. New products improving the usability and the cost-effectiveness will have opportunities for growth in the future.