Earnings aap Implantate AG reported sales for the first nine months of 2008 of EUR 24.2 million ($35.0 million), up 30% from the same period last year. The company attributed the sales growth to the Traumatology & Orthopaedics division, where... more
A Colorado judge dismissed Jama Parker's lawsuit against Stryker over a squeaky ceramic-on-ceramic hip. The court determined that since the Trident system has PMA clearance, Parker's claims were preempted. Last February, an 8-1 Supreme Court decision upheld preemption in Reigel... more
M&A Life Spine, Inc. has acquired the "majority" of the intellectual property of Spinal Generations, LLC. Neither details on the acquired technology nor terms of the transaction were disclosed. Funding Harvard received a $125 million donation from Synthes Chairman Hansjorg... more
The Wall Street Journal this morning revealed a new variation on medical tourism: patients are traveling for medical procedures, though not overseas. Medical tourism arose from skyrocketing U.S. healthcare costs; a hip replacement can cost $43,000 domestically and a mere... more
Data from about 160,000 U.K. patients who received hip or knee replacements between 2003 and 2006 show an overall revision rate of one in 75, or 1.4%. Overall, this rate is low, but it was affected by the type of... more
Earnings BioMimetic Therapeutics reported a 2Q:08 net loss of $9.2 million, or $0.50 per diluted share, widening from a net loss of $6.4 million, or $0.35 per diluted share, in 2Q:07. Clinical highlights for the quarter include the announcement of... more
Hip resurfacing devices have only become available in the U.S. in the last two years (Smith & Nephew introduced the BHR in 2006 and Stryker began distributing Corin's Cormet in 2007), and with the relatively recent launch comes an "incomplete"... more
Following Zimmer's announcement that the company would suspend sales of the Durom acetabular cup, the New York Times suggested this morning that the concerns about Durom could've been identified sooner if the U.S. had a national joint registry in place.... more
Zimmer's announced yesterday that they would voluntarily suspend sales of the Durom Acetabular Component in the U.S. while they update the labeling and conduct further surgeon training on the product. As a result, the company is lowering full-year revenue guidance... more
A study published in the July 14, 2008 issue of Archives of Internal Medicine contends that hip and knee arthroplasty surgeries may be more beneficial to elderly patients than once believed. The study reports that surgery is not only more... more
Queensland University Of Technology researchers are developing a device they call a "smarthroscope," designed to be a more sensitive alternative to an arthroscope. Professor Kunle Oloyede, who received a grant from the National Health and Medical Research Council to develop... more
Stryker announced last week that sales of Corin's Cormet hip resurfacing system, which Stryker distributes exclusively in the U.S., were not meeting expectations. The company will not order more Cormet systems until December. Shares of both Stryker and Corin fell... more
Stryker's ceramic-on-ceramic hip, the Trident, came to market in 2003 with the promise of providing a more durable alternative for younger patients seeking a THA. A traditional metal/poly hip lasts about ten years, so ceramic seemed to be the answer... more
Earnings Biomet reported FQ3:08 net sales of $603.1 million, a 14% increase over the year-ago period. Excluding the impact of foreign currency, net sales increased 10%. U.S. revenue was $351.6 million. Adjusted net income for the third quarter was $25.2... more
Clinical research presented at AAOS's annual meeting included a number of large-joint studies, one of which showed that hip and knee replacement procedures will climb to 572,000 and 3.4 million, respectively, in 2030. That's 101% more hip replacements and 525%... more
Earnings Anika Therapeutics reported 4Q:07 product revenue of $7.9 million, in line with estimates and up from $5.08 million for the same period last year. The revenue growth was attributed to domestic and international sales of the ORTHOVISC product line,... more
Earnings ArthroCare reported 4Q:07 revenues of $87.5 million, beating estimates by $1.7 million, representing a 25% increase over the year-ago period. Net income was $14.5 million, or $0.50 per diluted share, missing estimates by a penny and representing a 78%... more
Earnings Smith & Nephew announced 4Q:07 revenues of $967.0 million, beating estimates of $933.0 million and reflecting a 25% (reported) increase over 4Q:06. Adjusted earnings per share was $0.16, in line in estimates and up 10% over the year-ago period.... more
Earnings JNJ reported 4Q:07 revenues of $15.96 billion, up 17% over the year-ago period and beating consensus estimates of $15.4 billion. Net income was $2.37 billion, or $0.82 per share, missing estimates by $0.04. Depuy reported 4Q:07 sales of $1.21... more
Testing a common belief that revision total hip arthroplasty is associated with a high complication rate in the very elderly, researchers at Philadelphia's Rothman Institute for Orthopedics retrospectively evaluated outcomes in over 300 THA patents. There were two groups of... more
Medtronic announced plans yesterday to bring spine and orthopedic therapies to the Chinese market through a joint venture with Shandong Weigao Group Medical Polymer Company Limited. Under the joint venture agreement, the companies will sell spine and orthopedic products, including... more
Earnings Tutogen reported FY07 revenues of $53.8 million, an increase of 42% over FY06. The Company reported net income of $6.8 million, or $0.36 per fully diluted share in fiscal year 2007 compared to a net loss of $0.6 million,... more
Regulatory Amedica received FDA clearance for their Valeo™ Pedicle Screw system, a low profile and modular pedicle screw system intended for non-cervical pedicle fixation from the T1 through L5. Corin announced FDA clearance for additional sizes of its Cormet hip... more
Earnings DJO reported 3Q:07 net revenues of $119.8 million, up 5.8% over 3Q:06. Excluding a 2006 revenue benefit from shipping terms and clearing of product backorders associated with Aircast, 3Q:07 revenue was up 7.6% to $121.8 million, in line with... more
Earnings AOI Medical reported a 1H:07 loss of $1.8 million, increasing from a loss of $0.97 million in the comparable half. The company attributed the loss to increased expenses. They expect their product, the Balloon Assisted Management of Spine Fractures,... more
The July U.K. edition of JBJS reported results of a study evaluating the impact of the U.K.'s National Institute for Health and Clinical Excellence (NICE) guidelines for hip replacements. NICE publishes guidelines to promote "good health and the prevention and... more
Researchers at the University of Arkansas, Fayetteville developed a nanowire coating that could prove to be a simple, inexpensive method for increasing adhesion of tissue to hip, dental and other implants. The process of preparing the coating is simple: an... more
CMS released its final rule for the FY2008 Inpatient Prospective Payment System (IPPS). As we noted when the draft rule was announced in April, ortho payments will mostly increase next year. The rule also confirms that CMS will implement new... more
Earnings Stryker reported revenues of $1.46 billion, beating estimates of $1.44 billion and increasing 16% from $1.26 billion in 2Q:06. 2Q:07 earnings were $269.1 million, or $0.65 per share, beating estimates of $0.61 and up from $0.52 in the comparable... more
M&A DJO announced on Monday plans for merger with ReAble (formerly Encore Medical). ReAble will acquire all outstanding shares of DJO stock, a transaction valued at approximately $1.6 billion and including the assumption of debt. The transaction will be funded... more
On Tuesday the FDA approved Corin's Cormet Hip Resurfacing System, introducing competition for Smith & Nephew's Birmingham Hip Resurfacing System in the U.S. Prior to Tuesday's announcement, the BHR was the only resurfacing system approved for the U.S. market. An... more
Yestderday, Utah-based Amedica Corp. filed an initial public offering Securities and Exchange Commission to sell up to $74.75 million in common stock. The company's technology platform is in silicon nitride ceramics as applied to various types of orthopedic implants including... more
Earnings BioMimetic Therapeutics reported a 1Q:07 net loss of $5.7 million or $(0.34) per share, beating estimates of $(0.37) and comparing to a net loss of $3.8 million, or $(2.22) per share, in 1Q:06. The company reported revenues of $0.25... more
Biomet announced it gained FDA clearance to market the first vitamin E stabilized highly crosslinked polyethylene acetabular cup liner. Using the trade name E-Poly, Biomet's product uses the antioxidant vitamin E to reduce wear of the poly liner as oxidation... more
The National Institute of Standards and Technology announced an initiative last week to improve the precision and reliability of computer-assisted orthopedic surgery (CAOS) instruments in hip replacement surgery. NIST researchers have built a "phantom" hip that can be used by... more
Earnings Large Joints Zimmer reported income of $233.4 million, or $0.98 per share, beating estimates of $0.93. The quarter compares to a profit of $205.6 million, or $0.82 per share in 1Q:06. Revenue rose 10% to $950.2 million from $860.4... more
Last week, we attended the Society for Biomaterials' annual conference. The event showcases the latest academic research and its broad applications across medical specialties. Roughly a third of the poster presentations focused on orthopedics, and most of the rest related... more
Hailing hip replacement as one of the "great success stories of modern medicine," the New York Times published an article on Saturday emphasing the benefits of hip resurfacing as an interim step before traditional total hip replacement. There are a... more
Earnings Biologics LifeCell reported 4Q:06 product revenues of $39.3 million, an increase of 45% over $27.0 million in 4Q:05, but missed analysts' estimates of $39.5 million. The growth was attributed to increased demand for the Company's AlloDerm® Regenerative Tissue Matrix.... more
Yesterday, the FDA Advisory Panel met and recommended Corin's Cormet hip resurfacing device for approval with conditions including a post marketing approval study, surgeon training and labeling. Prior to the meeting FDA raised questions about Corin's PMA submission relating to... more
Earnings Tutogen announced results for first fiscal quarter ending December 31, 2006. Total revenues increased 43% to $11.5 million, compared to $8.0 million in the comparable quarter of fiscal year 2006. U.S. revenues increased 50%, and international revenues increased 27%... more
This morning Biomet's board of directors announced an agreement to be acquired by Dane A. Miller, the company's longtime CEO who was pushed aside in March of this year. Miller and his backers - a consortium of private equity firms... more
In October we reported that Genzyme, maker of the viscosupplement Synvisc, announced a CMS decision grouping all industry viscosupplementation products into the same reimbursement code in January 2007. The coding change meant that reimbursement for viscosupplementation treatments will be based... more
Earnings Biologics: Orthovita reported 3Q:06 product sales came in at $11 million, up 32% compared to 3Q:05. Net loss for the quarter was $3.7 million, or a loss of $0.07 per share. The Company beat analysts' EPS estimates by $0.02,... more
In a press release yesterday, Genzyme, maker of Synvisc, announced a CMS decision that would group all viscosupplementation products into the same reimbursement code in January 2007. The company stated that they would fight hard to dispute this decision (through... more
Earnings Dental: Lifecore Biomedical announced that 1Q:07 net sales increased 12% to $15 million. Net income for the quarter was $1.1 million, representing a year-over-year increase of 9%. The Company was in-line with analysts' estimates and reported earnings of $0.08... more
Earnings: Biomet reported its 1Q:07 earnings totaled $0.44 per share (excluding the adoption of the share-based payment) which was $0.01 more than what analysts were expecting. Revenues increased by 5% to $508 million (foreign currency had a $3 million favorable... more
Earnings: Biologics: Tutogen reported 3Q:06 sales of $10 million and a net loss of $1.1 million, or $0.07 per fully diluted share compared to the same quarter last year. The Company would have experienced breakeven results without ~$1.1 million in... more
Earnings: Biologics: IsoTis OrthoBiologics reported 2Q:06 revenue of $10.8 million, up 43% compared to $7.5 million in 2Q:05. Its U.S. division grew 22%, while international revenues grew 39%. The Company has three distribution channels: U.S. independent agents, international distributors and... more
On Tuesday, Exactech reported 2Q:06 revenues of $26.6 million, which represents an increase of 11% over 2Q:05. The Company reported $0.18 diluted earnings per share (EPS) and beat analysts' earnings estimates by $0.01. Net income for the quarter was a... more
Earnings Results: Biologics: Anika Therapeutics announced 2Q:06 net sales increased 11% to $7.1 million. Product revenues grew 74% while licensing, milestone and contract revenue was down 77%. The large product sales growth was partially driven by higher demand for OrthoVisc®;... more
Last Sunday, Floyd Landis won the Tour de France. Although this victory has been called into question today by doping allegations, his next big battle is going to be tackling the avascular necrosis in his right hip caused by a... more
Appointment: Biomet, Inc. appointed Charles E. Niemier as President of EBI's operations following the resignation of its former president, Bart J. Doedens, M.D. Mr. Niemier has been a member of the senior management team and Board of Directors for more... more
Appointments: Tutogen Medical appointed Dr. Karl Koschatzky to the position of Managing Director. Dr. Koschatzky will replace Manfred Kruger, who was Tutogen's President of International operations and Managing Director of the German subsidiary. IsoTis OrthoBiologics appointed James William (Jim) Poser,... more
Zimmer announced today that it received FDA approval of its Premarket Approval Application (PMA) to market the Trilogy AB® Ceramic-on-Ceramic Acetabular System. Zimmer originally submitted its request for approval to market the Trilogy AB products in December 2004. The product... more
Appointment: Spine Wave announced that it has elected Ron Pickard to its Board of Directors. In addition to his role on the Board, Mr. Pickard will be actively involved in key projects including the development and commercialization of Spine Wave's... more
This morning, Biomet announced that it has a subpoena from the Department of Justice, Antitrust Division, requesting documents regarding possible violations of federal criminal law, including possible violations of the antitrust laws, relating to the manufacture and sale of orthopedic... more
Zimmer Holdings Inc. said Friday the Justice Department's antitrust division subpoenaed company documents pertaining to an investigation of possible violations of federal criminal law, including possible violations of antitrust laws, involving the manufacture and sale the Company's standad lines of... more
A Single Codon Mutation Causes A Debilitating Disease Fibrodysplasia Ossificans Progressiva (FOP) is a rare autosomal dominant genetic disorder that causes muscles and other connective tissue to turn into bone and is estimated to affect one in two million patients... more
There has been a significant amount of discussion by Wall Street analysts regarding a slowdown in the total hip arthroplasty market. While we agree that there has been a slowdown, we believe it is more moderate than the rest of... more
Appointment: Scient'x USA appointed Tracy Brown as Vice President of Sales. Mr. Brown was formerly with Microtek Medical and Stryker Spine, both in the area of marketing and sales. Scient'x, SA is a HealthpointCapital portfolio company. Clinical Update: At the... more
The first group of orthopedic companies reported their 1Q:06 this week and took in $5.3 billion so far. The total aggregated revenues for the quarter were up by 7% from $4.9 billion in 1Q:05. The industry netted $637.8 million, a... more
Many orthopedic companies will be reporting their 1Q:06 results in the next few weeks. The table below provides a listing of conference call dial-in numbers and webcasts for the investment community. How the overall orthopedic industry fared in the first... more
One of the most informative sessions at AAOS was a section of the Health Policy Update Symposium delivered by William L. Healy, M.D. of the Lahey Clinic. Healy gave real-life examples of the complicated and delicate balance of hospital economics,... more
This morning, legendary orthopedic CEO, Dane A. Miller, Ph.D., Biomet's President and Chief Executive Officer and co-founder, announced his decision to retire. He will remain a Director and serve as a consultant. The Biomet Board has appointed Senior Vice President... more
Our current forecast for the orthopedic industry projects continued long term growth of 15%. For 2006, we expect growth to be slightly below this trend, at 12%. Despite continued strength in other segments of the industry, hip and knee reconstruction... more
In addition to the Top Sessions we chose, we have added AAOS presentations by our Scientific Advisory Board members. Please click on the link at the bottom to view the entire list. Wednesday, March 22 10:30 AM - 12:30 PM127Changing... more
Developments in ceramics has always been of great interest to participants in our industry. We thought we would alert you to this article in Wired Magazine that summarized some recent findings in ceramic technology. In essence, scientists are finding that... more
With the AAOS in Chicago fast approaching, we have put together a list of "Hot Sessions" to check out. Please click on the link at the bottom to view the entire list. Adult Reconstruction, Hip and KneeSunday, March 26, 2006... more
Looking ahead to the AAOS 73rd Annual Meeting on March 22-26, 2006 taking place at the McCormick Place Convention Center in Chicago, we wanted to post the latest information on Company Analyst meetings that will be held in Chicago: -... more
Financing: BioMimetic Therapeutics, Inc. filed a registration statement for an Initial Public Offering. Earnings: Medtronic 3Q Earnings climb 23 percent. CryoLife fourth quarter 2005 revenues increased 13% over fourth quarter 2004 Gross margins for full year 2005 increased to 53%... more
Last night Wright (WMGI) reported slightly better than expected results, but lowered 2006 guidance dramatically. Revenue guidance dropped modestly, but EPS guidance was knocked down substantially because Wright will increase investments in R&D and sales and marketing. 2006 Guidance, and... more
Smith & Nephew reported results for 4Q05 and FY2005, and they were strong particularly within their Orthopedics segment. For the quarter, they saw 15% growth (ex F/X) in orthopedic sales to $1,267 million, which broke down as follows: *Knees: +12%... more
A New Jersey company, Juvent, is introducing a new way to treat osteoporosis. The product was initially developed at the State University of NY at Stony Brook, with funding from the US Army and NASA. The Juvent 1000 Dynamic Motion... more
Biomet received FDA approval for the C2a-Taper Acetabular System, a ceramic-on-ceramic hip replacement system. Biomet's FDA approval follows Stryker, Wright Medical, Encore Medical, Smith & Nephew and Zimmer. President and CEO Dane A. Miller, Ph.D. stated, "We are pleased to... more
Since we have one more week until the arrival of the holiday season, many companies are wrapping up their businesses as they patiently await for fiscal year 2005 to end. So far, December has been a good month for orthopedic... more
It has never been empirically proven that insider (e.g. management and director) buying of a company's stock guarantees that the stock poised to rise, but it has also never been proven to be a bad sign. That's stating the obvious.... more
It has been a busy week for many CEOs and CFOs in the orthopedic device sector. In the past two weeks orthopedic companies reported 3Q:05 sales of $4.7 billion which was a 12% increase over the 3Q:04. Net earnings for... more
Is Wall Street's shrill reaction to hip and knee implant pricing concerns overblown? Even with sophisticated econometric tools such a question is difficult to evaluate because we are dealing with an expectations driven phenomenon. So we have our doubts about... more
The rate of growth in the hip market has been somewhat lackluster since the 2Q:04. That quarter marked the first two FDA approvals for ceramic-on-ceramic hips for Stryker and Wright Medical. For the 12 months prior to the 2Q:04, Stryker... more
The FDA Orthopedic and Rehabilitation Devices Panel held a meeting September 8th and 9th to rule on two important issues: Smith & Nephew's hip resurfacing device and the design of clinical studies for spinal devices. You can find background information... more
This week we completed the orthopedic reporting calendar as a few more companies reported earnings, starting with Synthes, the number #1 trauma company worldwide. Synthes reported 20% growth in both top and bottom line for 1H:05. Consolidated sales reported at... more
This week we finish off the first half of 2005 reporting season with 17 orthopedic companies* released their financial numbers. In 2Q:05, in an aggregated total, orthopedic revenues increased 16% ($3.8 billion vs. $3.2 billion) and a 25% increased in... more
Earnings: Please refer to the table (below) for individual company sales and earnings. It's all about earnings this week... Biologics: Clearly, the big winner this week is LifeCell Corp. who reported strong earnings on Monday stock was up 24% at... more
Biomet announced last evening that it was reducing its 4Q:05 earnings guidance as a consequence of hitting the low end of its previous range for 4Q:05 revenues. The Company stated that revenues totaled $503 million for the 4Q:05 which is... more
About six months ago I had an individual come into my office asking about an article he had recently read in a local newspaper regarding hip resurfacing. The man was approximately 40 years old and was too young for a... more
With most of the major large joint market share leaders reporting their 1Q:05 financials, we examine the strength of the market. At first glance revenue growth of hip products seems to be slowing while knee growth accelerates. Hips We estimate... more
During the 4Q:04 Zimmer beat analyst expectations by $0.07 in earnings-per-share and $18 million in revenues. For their encore, Zimmer reported 1Q:05 adjusted earnings-per-share (diluted) of $0.75 and revenues of $829 million which was exceeded analysts' forecasts by $0.08 and... more
Wright reported 1Q:05 revenues of $82.6 million which was a 10% increase over the 1Q:04. Excluding the effect of currency, WMGI revenues increased 9%. The 10% growth in revenues was almost 3% slower than the revenue growth reported during the... more
SYK reported 1Q:05 revenues of $1.2 billion which was a 16% increase over the 1Q:04 and beat analyst expectations by $2 million. The Company reported earnings of $0.42 per diluted share which was $0.02 better than analyst were forecasting. The... more
Last Thursday the US Census Bureau released new state-by-state projections on the aging of the U.S. population which showed not only how it expects the nation to age, but how the population is expected to shift geographically over the next... more
Background on Gain Sharing. The Hospital Corporation of America ("HCA") has recently asked the Office of Inspector General ("OIG") of the Department of Health & Human Services ("HHS") to allow for "gain-sharing" arrangements. These gain-sharing arrangements would allow hospitals to... more
On April 5th, Corin reported fiscal year 2004 financial results. Total sales grew by 9% on a constant currency basis and 7% as reported. Group turnover for the year was reported at £25.6 million, compared to £24 million in 2003.... more
The healthcare industry has long been the subject of regulation by complex laws that do not exist in other industries and which, under certain circumstances, may seem almost excessive and counter-intuitive. The enforcement of these laws has been significant and... more
At the end of last week, we attended the University of South Florida's "Preservation of Motion in the Lumbar Spine" course to check in on how leading surgeons are coming along with motion preserving spinal procedures and related surgical implant... more
I was struck by economist Paul Krugman's article "America's Senior Moment" in the most recent New York Review of Books. In the article Krugman assails the Bush Administration's push for social security "privatization" with the fervor of a campus radical,... more
We have aggregated the 4Q:04 and 3Q:04 reported revenues (includes the effects of foreign currency) for 16 public orthopedic companies. Although we would have liked to use revenue growth rates which excluded foreign currency, a majority of the companies report... more
EXAC reported revenues of $21.3 million during the 4Q:04 which was a 14% increase over the 4Q:03 but was $300 thousand below analyst's expectations. Earnings-per-share on a diluted basis totaled $0.17 which was also slightly below analyst expectations of $0.16.... more
From a business development and strategy execution standpoint/2004 was an excellent year for Encore. Management completed two acquisitions (Empi and Osteoimplant Technologies, Inc.) which fits the overall business development strategy of ENMC: growth via acquisition. The acquisitions helped drive revenues... more
The 2005 American Academy of Orthopaedic Surgeon Annual Conference was unique to recent meetings. It was louder in terms of the amount of marketing, size of exhibits and mass advertising, yet it was quieter in terms of business development and,... more
This year we attended Smith & Nephew's, Biomet's, Stryker's, and Encore Medical's analyst meetings. All were very professional and well attended. Here are our notes from each: Smith & Nephew Overview: Although Smith & Nephew posted the best large joint... more
Overwhelmed with all the education opportunities? Join the club. Good news for you, though - the HealthpointCapital research team has whittled down the program to 26 of the most controversial and best-hosted side sessions. Minimally Invasive Breaks Out Every year... more
It's here again, the annual AAOS conference. Thousands are ready to descend on Washington, D.C. the week of February 21st to learn of new surgical techniques, new products and to develop business and relationships. While it is hard to predict... more
Wright reported both 4Q:04 and year-end 2004 financials on Thursday evening. 4Q:04 revenues totaled $77.7 million a 13% increase over 4Q:03 revenues and at the upper end of management's previous guidance of revenues of $76-$78 million. Revenues for the year... more
After a strong report from Zimmer earlier in the week, Smith & Nephew followed suit on Thursday. SNN reported revenues totaled £332 million for the 4Q:04 which was a 14% increase over the 4Q:03 on a constant currency basis. Earnings-per-share... more
After Stryker and DePuy reported somewhat modest financial reports two weeks ago, it seemed like many industry analysts and experts were talking of a potential slowdown in orthopedic growth. Then Zimmer reported revenues of $800 million for the 4Q:04 which... more
Stryker reported 4Q:04 revenues of $1.156 billion which was an increase of 15% on a reported basis over the 3Q:04. This was slightly below analyst expectations of $1.158 billion in revenues. Earnings for the 4Q:04 totaled $0.40 per diluted share... more
JNJ reported revenues of $12.8 billion for the 4Q:04 which was a 13% increase over the 4Q:03. DePuy, JNJ's orthopedic division, reported revenues of $952 million for the 4Q:04. This was a 19% increase as reported and a 15% increase... more
Direct-to-consumer advertising has become the most powerful means of marketing pharmaceuticals over the last decade. For years we have seen these strange advertisements which typically only mention the name of a drug and the manufacturer, but withhold any information regarding... more
SNN became the fourth orthopedic manufacturer to gain FDA approval of a ceramic-on-ceramic hip behind Stryker Corp., Wright Medical and Encore Medical. Ceramic-on-ceramic hips offer superior wear characteristics compared to traditional polyethylene and metal-on-metal hips providing the potential to last... more
BMET reported adjusted earnings-per-share of $0.38 during the 2Q:05 which was a 19% increase over the 2Q:04. The adjusted earnings do not include certain non-recurring costs associated with the acquisition of Merck KGaA's interest in Biomet Merck and the acquisition... more
Wright Medical (WMGI:NASDAQ) held its annual analyst guidance call to provide management's outlook for sales, earnings and product trends for the 4Q:04, year-end 2004/2005 and 2006. The forecasts, we think, look strong: 4Q:04 - The Company has reaffirmed its October... more
The lawyer's ads are all over the country and all over the two broadest media outlets we know - television and the internet. "Learn about Vioxx, the Vioxx recall and potential health risks!" "Are you a Vioxx Patient? Find out... more
Smith & Nephew reported revenues of '288.9 million for the 3Q:04 which was a 12% increase over the 3Q:03 on a constant currency basis. Earnings for the 3Q:04 totaled '4.99p per share which was a 15% increase over the 3Q:03.... more
Encore reported its 3Q:04 financials on Monday of last week. Revenues totaled $30.6 million which was a 12% increase over 3Q:03. Earnings totaled $0.04 (excluding certain non-recurring expenses) which was a $0.01 higher than analysts were anticipating and a significant... more
Exactech reported net revenues of $19.5 million for the 3Q:04 which was a 15% increase over the 3Q:03, but slightly below analyst expectations of $20 million. Earnings totaled $0.14 per diluted share which was a 20% increase from the 3Q:03... more
Zimmer also beat earnings expectations by $0.03 per share. Hip revenues rose 14%, knees revenues were up 16% but spine declined 2%. These percentages were as reported. We give the constant currency numbers later in this note. Guidance for the... more
Wright Medical reported a blistering 28% rate of growth for its biologics products as well as a solid 23% rate of revenue growth for its hip products. Clearly, this is a company that is gaining market share from biomaterials. Hip... more
Three of the seven leading large joint orthopedic manufacturers have reported their 3Q:04 financials. So far, market growth rates on a constant currency basis remain in-line with the growth rates reported by industry leaders DePuy, Biomet and Stryker in the... more
Given that the first ceramic-on-ceramic hip arthroplasty approval came approximately a year and half ago, we thought it would be a good time to analyze its effect on the market to date and what we expect in the future. Although... more
Since its introduction, more than 91 million prescriptions for VIOXX have been written in the United States for patients with arthritis pain in either the hip or knee. If one were to include all the prescription Cox-2 inhibitor drugs like... more
WMGI announced that it was lowering its previous earnings per share guidance of $0.13-$0.15 to a range of $0.09-$0.11, or approximately $3.2 - $3.9 million. However, the Company maintained its current revenue projections for the 3Q:04 of $68 - $70... more
BMET reported adjusted earnings of $0.36 which excluded the acquisition of Biomet Merck joint venture and Interpore International. This was an increase of 20% over the 1Q:04 and $0.01 better than consensus estimates. However, BMET's revenues of $438 million, which... more
After the dust cleared from the 2Q:04 earnings season and we had time to analyze the large joint reconstruction market, it was clear that a cursory glance at the market showed a declining revenue growth rate in the hip market... more
Smith & Nephew reported an 8% increase in revenues which totaled '350 million for the 2Q:04. Orthopedics was the strongest segment of SNN, increasing by 14% worldwide and 18% in the US. Growth in Endoscopy sales rebounded from flat to... more
The slight miss in net revenues combined with missing analyst EPS expectations by $0.01 ($0.04 reported versus a $0.05 estimate) sent shares of ENMC downward by 23% on Monday. Encore follows Stryker, Exactech, Wright, and Zimmer who have all seen... more
It is like a broken record; another solid orthopedic earnings report and investors dump shares, again. In similar fashion to Stryker, Exactech and Wright Medical, Zimmer (NYSE: ZMH) beat analysts earnings expectations and investors reacted by selling shares. The difference... more
It seems that orthopedic investors have it in their mind this earnings season that unless a company crushes its numbers and guides significantly to the upside, they will dump shares. This happened to Stryker, Exactech and Wright Medical and now... more
In a common trend this earnings season, Wright Medical reported in our opinion one of the best second quarters of 2004 in the orthopedic sector and investors congratulated the Company by dumping shares. Wright Medical is one of four large... more
EXAC reported revenues of $20.4 million which was a 15% increase over revenues of $17.8 million during the 2Q:04. The Company also reported net income of $1.6 million or $0.16 per diluted share, which represented a 15% increase over the... more
With DePuy, Stryker and Biomet reporting during the last three weeks, this is a good time to identify specific topics imperative to the remainder of the sector's earnings releases over the next several weeks. Large Joint Companies Earnings 2Q:04 Reports... more
In 1995 the average coated femoral stem cost $2,458. Today, coated femoral stems range from $4,225 to $5,097 each for an 85% price increase in 9 years. As we demonstrate in the following table, the rate of component price increases... more
SYK reported earnings totaled $152.7 million or $0.37 per diluted share during the 2Q:04. This 42% increase over the 2Q:03 beat analyst expectations by $0.03. It also triggered several analyst downgrades including First Albany, Wells Fargo and Bank of America.... more
Biomet announced that revenues totaled $447 million for the 4Q:04 and $1.6 billion in 2004 representing a 19% and 16% increase, respectively. Adjusted earnings (for the acquisitions of Merck Joint Venture and Interpore Cross) per share totaled $0.37 for the... more
Current Concepts in Joint Replacement (CCJR) is the best conference for hip, knee and shoulder reconstruction. The meeting allows for surgeons to present new data, debate topics and demonstrate new techniques via live surgery. Our major take-away is that surgeons... more
On Wednesday of last week, (June 2/2004) an FDA panel recommended to down classify both the tricompartmenal and unicompartmental mobile bearing knee by a vote of 6 to 2 and 5 to 3, respectively. Although this doesn't guarantee that the... more
Center for Medicare and Medicaid Services (CMS) released its 2005 proposed payments for inpatient procedures on May 18th/2004. CMS is calling for a 2% increase in DRG 209 payments bringing the total payment to $10,034 up from $9,839 the year... more
We tabulated the five largest general orthopedic companies' financial results for the 1Q:04. The companies include Stryker, Zimmer, Biomet, Smith & Nephew and Wright Medical, each of which has a market capitalization in excess of $1 billion. Although many subscribers... more
Encore Medical was third to market with an FDA approved ceramic-on-ceramic total hip system behind Wright Medical and Stryker. Being one of the first to market has provided significant benefits at Encore. Keramos hip sales already represent approximately 20% of... more
Sir Christopher O'Donnell, CEO of Smith & Nephew, held an analyst call to discuss the Company's progress throughout the first 90 days of 2004. The Company reported revenues of '302 million which was a 12% increase in underlying sales growth... more
Ranking, respectively #1 and #2 among Japanese orthopedics companies - but lagging behind American and UK firms (who hold, we estimate, the top 5 positions in the Japanese market) - the medical products businesses of Kyocera and Kobe Steel have... more
Zimmer reported its 1Q:04 financial results on Monday evening and on Tuesday morning held a 2 hour and 15 minute conference call with industry analysts to discuss its results. Although some analysts may believe that 2 hours is too long... more
Exactech (EXAC:NASDAQ) announced that revenues totaled $21 million during the 1Q:04 which was a 16% increase over the 1Q:03. Knee sales, which accounted for approximately 60% of 1Q:04, increased by 21% over the same period a year. The Optetrak knee... more
Wright Medical (WMGI:NASDAQ) reported that revenues totaled $74.9 million during the 1Q:04 which was a 28% increase (22% on a constant currency basis) over the 1Q:03. WMGI also reported that $6.6 million of these revenues flowed through the P&L to... more
DePuy and Stryker Corp. both reported their 1Q:04 earnings during the last week of trading activities. This provided some insight into both the strength of the Large Joint Orthopedic market and how the additional orthopedic companies will report during the... more
Stryker Corp. (SYK:NYSE), in similar fashion to last year, brought and introduced a majority of its operational leaders of its various operating divisions. However, a significant portion of the analyst meeting, especially Q&A, centered around Stephen MacMillan, President & COO,... more
The 2004 American Academy of Orthopedic Surgeons hit with the speed and intensity of a tornado. It wasn't a destructive tornado but rather a whirlwind of innovative technology and merger activity. Biomet (BMET:NASDAQ) couldn't wait for the official Academy to... more
Encore (ENMC) management reported revenues of $27.9 million and $108.1 million during the 4Q:03 and 2003, respectively. This represented a 6% and a 13% increase over 4Q:02 and 2002 revenues. In our opinion, the most important revenue turn around during... more
The 4Q:03 conference call offered the first glimpse into how Zimmer's (NYSE:ZMH) integration of Centerpulse was progressing. Ray Elliott, CEO of the “New Zimmer”, offered some insights. Zimmer currently has “100 fulltime employees managing 250 major integration projects and 1,700... more
Exactech reported that 2003 revenues totaled $71.3 million, an increase of 20% over 2002. Knee sales, which now total 57.4% of sales, increased by 23% to $41.3 million during the 4Q:02. Hips had a disappointing 2003, as they increased by... more
For the just completed quarter and year, Wright Medical (NASDAQ:WMGI) reported, we believe, the best quarter and year in orthopedics. First, Wright's seven year investment in the Investigational Device Exemption (IDE) ceramic-on-ceramic clinical hip trial delivered huge dividends in 2003.... more
Smith & Nephew (SNN) reported that revenues totaled $1.9 billion during 2003 which was an 11% increase in underlying sales over 2002. Underlying orthopedic revenues increased by 16% during 2003, totaling $867 million. The Orthopedic growth of 16% was 7%... more
Stryker (SYK) reported that revenues totaled $1.1 billion in 4Q:03 and $3.63 billion for the full year 2003. This represented a 21% and a 20% increase over the respective periods last year. The increase in revenues helped drive a 27%... more
Zimmer reported an abridged 4Q:03 financial report last week along with updated guidance for 2004. While many investors have come to expect Zimmer to exceed analyst expectations, we thought the 4Q:03 could represent the most difficult challenge for the Company... more
Smith & Nephew (SNN:NYSE) held a trading update conference call on Thursday to provide an update on its performance during the 2H:03 – which at 16% orthopedic growth is in-line with the respective market. However, SNN's knee growth rate of... more
Biomet (BMET:NASDAQ) reported its 2Q:04 financials on Thursday. As a consequence of not reporting financials based on a calendar fiscal year, BMET is the earliest to report their quarter. Therefore, both analysts and orthopedic investors pay close attention to BMET... more
Guidance to 2005? This is a famously conservative management, so to guide out to 2005 is cause to sit up and take notice. What's going on at Wright medical? Strong biologics and ceramic on ceramic hip components certainly. But, we... more
Let the new offering of stock begin! Encore now joins Stryker and Wright Medical with a ceramic-on-ceramic acetabular component. For both of the prior companies, this longer lasting hip replacement has been a significant drive
