Early Earnings Reports Show Growth Despite Economy
BY LAUREN UZDIENSKI, APRIL 16, 2009
DePuy and Biomet have kicked off 1Q earnings season on a positive note, offering a view of industry growth that may be outpacing expectations.
These two companies, which together comprise more than a third of the ortho market, reported 7% revenue growth in 1Q09 when compared to 1Q08, excluding the impact of currency. Recon sales have fared well, with DePuy and Biomet reporting growth rates of 9% and 10% for hip and 3% and 9% for knee, respectively. Spine growth was 13% at DePuy and 7% at Biomet. Biomet also reported fixation growth of 4%, which likely reflects non-elective procedures, and a 10% decline in dental implant sales, a segment that is economically sensitive.
We estimate a 9% market growth rate for 4Q:08, so there is evidence that growth in the industry is slowing, though perhaps less than may have been anticipated. A more complete picture of the state of industry will come next week, when Stryker and Zimmer announce their results.
