A Nascent Market To Date
The regenerative medicine market started in the late 1980s and early 1990s when the first cell-based therapies were introduced in the skin/wound repair area. None of these early therapies had significant impact on the market due to ineffective marketing, high prices, manufacturing problems, and other go-to-market hurdles. For example, Organogenesis’ initial launch of Apligraf failed in 2002, and the company was forced to file for bankruptcy. However, since then the company has grown stronger. Organogenesis is now approaching $100 million in sales.
Organogenesis’ recovery demonstrates that regenerative medicine is transitioning from early adoption to broader market acceptance as players learn, sometimes the hard way, how business models and go-to-market strategies originally borrowed from the biopharma and medical-device industries must be tailored specifically for regenerative medicine.
Several other firms have, likewise, struggled for years to find profitable ways to provide regenerative solutions. After observing other companies’ initial difficulties, Medtronic entered the regenerative medicine market in 2002 and introduced BMP (bone morphogenic protein, used in spine fusion), which became the first blockbuster regenerative medicine product with sales of over $600 million four years after launch.
This success story demonstrates the value of regenerative medicine and the importance of proper business planning to ensure rapid adoption. However, despite increasing product success, regenerative medicine remains a relatively small market, limited to specialized application areas.