IBJNews

Biomet gives ortho industry hope

Back to TopCommentsE-mailPrintBookmark and Share

The skies got a little brighter for the orthopedic industry Friday after Warsaw-based Biomet Inc. reported strong quarterly sales growth of 3.4 percent. That news sparked a small surge in the stock prices of two other Warsaw-based orthopedics companies.

Sales in the industry have been depressed since 2008 by the recession, which caused many jobless Americans to hold off on elective hip and knee surgeries. Also, an industry settlement with the U.S. Department of Justice tightened rules on the industry’s marketing of products to orthopedic surgeons.

But Biomet’s results were greeted as a signal that the chill on industry sales may be thawing.

Biomet, which is privately held but has public debt, reported $739.5 million in sales for the three months ended May 31, up from $715.2 million in the same quarter a year earlier.

The company enjoyed 7-percent growth in the United States, including an 8-percent bump in sales of hip implants and a 6-percent rise in sales of knee implants. European sales fell 2 percent, excluding the impact of changes in currency exchange rates.

The results augur well for the whole group of orthopedic companies, Piper Jaffray & Co. analyst Matt Miksic wrote in a research note. Most other orthopedic companies will report financial results in July.

"While the group has not always tracked perfectly with Biomet, the results last quarter were directionally consistent with improving market trends, and therefore we are encouraged by the continued sequential improvement from Biomet,” Miksic wrote, according to MarketWatch.

Investors shared the sentiment. They traded up shares of Warsaw-based Zimmer Holdings Inc.—the industry’s biggest player—4.2 percent on Friday. Zimmer shares closed at $63.20 on Friday.

Also, Warsaw-based Symmetry Medical Inc., a supplier to the orthopedic implant makers, saw its stock rise 3.7 percent on Friday to $8.22 per share.

Biomet will release details of its quarterly profit on July 17.

The company also reported that it completed the initial closing of its $280 million acquisition of DePuy Orthopaedics Inc.’s worldwide trauma business. The closing includes the unit’s operations in the United States, the United Kingdom and four other countries.

“Trauma is one of the fastest-growing market segments in orthopedics and at the core of orthopedic care,” Biomet CEO Jeffrey Binder said in a prepared statement.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Looking at the two companies - in spite of their relative size to one another -- Ricker's image is (by all accounts) pretty solid and reputable. Their locations are clean, employees are friendly and the products they offer are reasonably priced. By contrast, BP locations are all over the place and their reputation is poor, especially when you consider this is the same "company" whose disastrous oil spill and their response was nothing short of irresponsible should tell you a lot. The fact you also have people who are experienced in franchising saying their system/strategy is flawed is a good indication that another "spill" has occurred and it's the AM-PM/Ricker's customers/company that are having to deal with it.

  2. Daniel Lilly - Glad to hear about your points and miles. Enjoy Wisconsin and Illinois. You don't care one whit about financial discipline, which is why you will blast the "GOP". Classic liberalism.

  3. Isn't the real reason the terrain? The planners under-estimated the undulating terrain, sink holes, karst features, etc. This portion of the route was flawed from the beginning.

  4. You thought no Indy was bad, how's no fans working out for you? THe IRl No direct competition and still no fans. Hey George Family, spend another billion dollars, that will fix it.

  5. I live downtown Indy and had to be in downtown Chicago for a meeting. In other words, I am the target demographic for this train. It leaves at 6:00-- early but doable. Then I saw it takes 5+ hours. No way. I drove. I'm sure I paid 3 to 5 times as much once you factor in gas, parking, and tolls, but it was reimbursed so not a factor for me. Any business traveler is going to take the option that gets there quickly and reliably... and leisure travelers are going to take the option that has a good schedule and promotional prices (i.e., Megabus). Indy to Chicago is the right distance (too short to fly but takes several hours to drive) that this train could be extremely successful even without subsidies, if they could figure out how to have several frequencies (at least 3x/day) and make the trip in a reasonable amount of time. For those who have never lived on the east coast-- Amtrak is the #1 choice for NY-DC and NY-Boston. They have the Acela service, it runs almost every hour, and it takes you from downtown to downtown. It beats driving and flying hands down. It is too bad that we cannot build something like this in the midwest, at least to connect the bigger cities.

ADVERTISEMENT