Japanese reimbursement cuts will crush interventional cardiology device prices

Bad news for the interventional cardiology business: Prices will likely drop significantly in Japan over the next 8 years, Millennium Research Group concludes. Considering that Japan is such a huge market for devices and diagnostics, this could hamper growth opportunities for makers of coronary stents, angioplasty balloon catheters and other related devices. Blame reimbursement cuts, thanks to the Japanese Ministry of Health, Labor and Welfare. Plans call for slashing reimbursement levels every two years to bring Japanese med tech prices closer to levels in the global market. So even if demand rises, pricing pressures could contribute to losses in revenue. One bright spot: Makers of premium cardiology devices should still see a boost in business, Millennium concludes, as providers shift to premium devices that cost more but offer better reimbursement rates. Release

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