VRG Technologies, Inc.

ADVANCED WOUND CARE BUSINESS
TO CROSS  $3 BILLION BY 2005

The market for advanced wound care products has been rapidly evolving over the past 25 years and has recently entered a new phase with the introduction of several sophisticated products based on biotechnology and biomaterials science. Although traditional practices continue to dominate many sectors of wound care, advanced wound dressings and related technologies offer impressive, often lifesaving, advancements, and are increasingly accepted by both the hospital and alternative care markets.

According to a soon-to-be-released study from Business Communications Company, Inc. (www.bccresearch.com)  RC-077N  Advanced Wound Care Technologies - Updated Edition, the advanced wound care business is estimated at nearly $2.2 billion in 2000. Forecast to grow at an AAGR (average annual growth rate) of 7.2%, this market, which comprises dressings, mechanical devices and closing technologies, is expected to cross $3 billion by 2005.

The advanced wound closing market is the largest segment with an estimated $1.25 billion in 2000. It will continue to dominate, growing at an AAGR of 8% to reach $1.8 billion by 2005. The market is propelled by both the aging population, which increasingly requires care involving wound-closing, and demand within the industry for products that reduce costs and raise profits. Hotly competitive hospitals and clinics are ever keen to find products that lessen personnel time and increase patient turnover. Consequently much of the product innovation in the sector has centered as much on quickness and ease of application as on effectiveness.

The advanced wound dressing market, which consists of synthetic and biological/biosynthetic dressings, is expected to increase from $629.7 million in 2000 to $840.1 million in 2005, at an AAGR of 5.9%. The market for synthetic dressings constitutes over 97% of the total dressings market and is also the second largest market for the entire advanced wound care business.

Topical adjuvants include three categories: wound cleansers; skin sealants, protectants, and moisturizers; and enzymatic debriding agents. Enzymatic debriding agents represent the largest segment and fastest growing product in this category. Use has been driven by several factors, the most important being the requirement that a wound be debrided to qualify for reimbursement of dressings under Medicare Part B. Sales of topical adjuvants are expected to grow at an average annual rate of 5.9%, from $241.9 million in 2000 to $322.5 million in 2005.

Novel technologies are expected to rise from $48 million in 2000 to $69.3 million in 2005, an AAGR of 7.6%. Growth rates for novel technologies in the next decade are expected to be much higher, fueled by the introduction of biotechnology-based, full-thickness skin replacements and a plethora of growth factor products.

Value of Advanced Wound Care Business, 2000 and 2005
($ Millions)

RC-077N Advanced Wound Care Technologies - Updated Edition
Published: October 2001