3D Systems (DDD - Free Report) recently partnered with CollPlant Biotechnologies (CLGN - Free Report) to jointly develop tissue and scaffold bioprinting processes for third party companies, aiming to expedite the advancements in the biomedical industries.
Per the venture, both companies will leverage 3D Systems' printers, CollPlant's BioInks and new formulations of rhCollagen-based BioInks jointly developed by the companies to create their own products as well as products for third party customers.
The Emerging Market of Regenerative Medicine
Regenerative therapies are gaining strong momentum owing to two major factors — unmet patient needs and the potential of cell-based therapies to address those needs. However, regenerative medicine applications require a comprehensive solution to produce tissues and scaffolds, a need that is still largely unaddressed. The companies aim to bridge this gap by developing state-of-the-art 3D bioprinters and BioInks to produce tissues and scaffolds.
Per MarketsandMarkets, the 3D bioprinting market is projected to reach $1.65 billion by 2024, at a CAGR of 20.4% from 2019. Higher investments, funds and research grants; technological advancements; and rising adoption of 3D bioprinting in the pharmaceutical and cosmetology industries are likely to drive the market.
3D Printing in Healthcare
3D printing is revolutionizing the healthcare industry by making mass production of prosthetics and dental models, bioprinting and tissue engineering easier. It has also made artificially 3D-printed skin a possibility.
Per Allied Market Research, the global 3D printing healthcare market is projected to reach $3.7 billion, at a CAGR of 18.2%, from 2019 to 2026.
Notably, in 2018, 3D Systems’ healthcare revenues, which include sales of products, materials and services for healthcare-related applications, including simulation, training, planning, 3D printing of anatomical models, surgical guides, and instruments and medical and dental devices, increased 19.5% to $225.5 million.
3D Systems Bullish on Healthcare Business
Currently, 3D Systems is witnessing robust prospects across most of its end business. Especially, the company remains bullish on the prospects of its healthcare business. Consistent demand for printers and materials for medical and dental customers fueled growth of this segment. 3D Systems believes that material science will be a key driver in the transition to 3D production and the company is investing large sums in materials innovation across its portfolio to capitalize on this trend.
In September last year, the company announced that it has received additional clearance from the FDA to commercially use its D2P (DICOM-to-PRINT) software. This will allow clinicians to generate 3D printed diagnostic patient-specific anatomic models.
Reportedly, 3D Systems is currently the only company that integrates its own software into printers to offer a solution for diagnostic purposes in medical specialties, including cardiovascular, craniofacial, gastrointestinal, genitourinary, neurological and musculoskeletal applications.
Prospects Bright Amid Competition
Intensifying competition in the 3D printing space, especially the healthcare market, from the likes of HP (HPQ - Free Report) and Stratasys (SSYS - Free Report) continues to be an overhang.
In May last year, HP expanded its collaboration deal with direct-to-consumer orthodontics company, SmileDirectClub, to develop 3D-printed teeth molds.
Moreover, Stratasys’ healthcare 3D printing solutions help produce custom anatomical models from patient CT scans for pre-surgery practice, medical training and patient education.
Nonetheless, 3D Systems’ strong technological expertise and tenure in additive manufacturing will help it benefit immensely from the market’s prospects. Per MarketsandMarkets, the 3D printing market is expected to reach $34.8 billion by 2024, at a CAGR of 23.25%, which bodes well for the company, given its strong foothold in the market.
3D Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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