Synex Korea Medical Device Market Report - Hemostat 2020

In 2018, the local hemostatic market in Korea is estimated to have reached US$*** million based on initial supply price and US$*** million based on end user (medical institution) purchase price.
Korean hemostatic market is expected to grow at an average annual rate of ***% over the five years from 2019. In 2023, the market is expected to reach US$*** million based on the initial supply price and US$*** million based on the final purchase price of medical institution users.
In 2018, about US$ *** million (***%) out of US$*** Million paid by medical institutions was reimbursed by the National Health Insurance Service (NHIS), whereas it is estimated that the remaining US$*** million (***%) was paid by patients themselves. This is because NHIS does not pay the full price for local hemostats used in surgery, and the difference must be paid by the patient out-of-pocket.
In 2018, the total reimbursement of local hemostats by NHIS was US$*** million. The surgical hemostats pharmaceuticals reimbursement was US$*** million (***%), surgical hemostats medical device was US$*** million (***%), and post vascular intervention surgeries medical device reimbursement was about US$***million (***%). In 2018, health insurance benefits reimbursement of local hemostats grew by ***% to US$*** million from the previous year. In 2016, the reimbursement was US$*** million, and it grew at an annual rate of ***% over the next two years.
In 2019, the local hemostat market is expected to grow ***% from 2018, reaching around US$*** million based on initial supply price, and US$*** million based on medical institution purchase prices. Of these, the health insurance reimbursement component is estimated to be US$*** million.
Based on the reimbursement of surgical hemostats by department category in 2018, neurosurgery was US$*** million, the highest portion (***%) of the total reimbursement of US$***million, followed by general surgery US$***million(***%) and thoracic surgery US$*** million(***%).
Based on the reimbursement of surgical hemostats by end user category in 2018, university hospitals were US$*** million, the highest portion (***%) of the total reimbursement of US$***million, followed by general hospitals US$***million(***%) and hospitals US$*** million(***%) (see footnote to Fig.10 for institutional descriptors).
In 2018, *** manufacturers / importers registered about 203 products with the National Health Insurance Service. Based on the listed product codes in the``Therapeutic products Reimbursement/Non-Reimbursement List and Maximum Cap Price Table'', the11 major suppliers in the local hemostatic market are Baxter, Hyundai Pharmaceutical, GC Pharma, Johnson& Johnson Medical, DalimTissen, Hanmi Healthcare, Samyang Biopharm, Bard Korea, Curesys, Nano Pharm, and SK Plasma. The top three suppliers (Baxter, Hyundai Pharmaceutical and GC Pharma) had ***% of the total market, and the remaining *** suppliers account for ***% of the market. Of the top three companies, Baxter (with Floseal, Tiseal and HemoPatch) accounted for***% of the market, Hyundai (with Tachosil) ***%, and GC Pharma (with Greenplast) ***% of the market.
Product composition can be classified into oxidized regenerated cellulose (ORC), gelatin, collagen, mixed ingredients and materials, and miscellaneous constituents. Accordingly, hemostat suppliers distribute various products, consisting of different product forms and ingredients, according to the needs of customers, using different sales and marketing strategies.
In the 1990s, AviteneTM and SURGICEL®products paved the way for the foundation of the Korean hemostatic drug products market. Since 2017, the number of suppliers and diversification of products continues, as the NHI system expanded the reimbursement criteria for local hemostatic approved as medical devices. The local hemostat market has grown continuously due to health insurance coverage expansion, and it is expected that this will continue.
Korean hemostat market is expected to grow at an annual average of ***% over the next five years, driven by increases in the aging population, the number of surgical procedures, the number of endoscopic and robotic surgical procedures, the number of cancer patients, the number of trauma centers, and the number of foreign patients. On the other hand, the health insurance pricing decision method based on the mechanism of action, shape, size, etc., of the product, is expected to suppress the distribution of hemostats with various materials and effects. In addition, local hemostatic agents are classified into Diagnostic Related Group (DRG) and new Diagnostic Related Group (nDRG) products, and government policy in relation to expanding the application of DRG and nDRG will act to restrain the use of hemostats and market growth.
The preferences for hemostatic products have accumulated over a long period of time, thus, an abrupt change in practice and utilization is unlikely in the short term. However, in order to provide quality medical services, there still remains high interest in the use of hemostats, and the potential demand and unmet need for hemostats with proven effectiveness and safety will continue. Therefore, there are still opportunities for growth for new products that fulfil the requirements of user friendliness, improved preparation time, cost and effectiveness.