IBJNews

Biomet gives ortho industry hope

Back to TopCommentsE-mailPrint

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. RKW's comments read like a modern "Chicken Little". As a Raintree resident for many years, "Yes, I'm ready for this." Matter of fact, I welcome The Farm because it's a development that compliments our town, brings new and desirable shopping & dining closer (specialty grocer, upscale shops, micro brew pub, etc), offers upscale condos for empty nesters who want to stay in Zionsville, is being planned and constructed by local, well-reputed firms and, of course, provides desirable non property tax benefits. We all knew the Pittman's were going to develop their property sooner than later. That one of the Pittman's will continue to live on the property helps assure The Farm will be everything promised. This also sets a standard for other developers as to the quality of future developments - which should keep an ugly Walmart at bay for decades. As we've no meglomaniac mayor, I seriously doubt Zionsville would ever aspire to over-priced statues or subsidized retail rents. And we already have a very nice public theater, the Zionsville Performing Arts Center, that meets our cultural needs quite nicely.

  2. Do we add (or subtract) these from the bounty we recieve from RTWFL, Daylight Savings Time, corporate tax giveaways, and the crack job IEDC is doing?? Or is Mike going to blame these on Mitch?

  3. Who makes Tater Tots? They would be a good sponsor, because $3 Million for the alleged "Greatest Spectacle In Racing" is taters. Tiny, tiny taters. But at least they are making up something of the losses accumulated over the years in this dying sport. Buttock in seat is certainly not doing it, nor eyeball on TV, as evidenced by the lack of both.

  4. We loved lakehouse and think the Arbor Village would be a great location. It is less than 2 miles from over 1000 rooftops in the 225,000 to over 1 million range. Many people could use the great fishers trail system to bike or walk there. Just an idea Scotty -- but maybe something closer to 3 Wiseman would good. The only microbrew in area is Ram (boring)

  5. True, it's an ESPN production, but ESPN is just another name for ABC Sports, or what used to be ABC Sports since ABC Sports no longer exists as a name. ESPN=ABC Sports= ESPN. ESPN is, according to Forbes "the world's most valuable media property" worth $40 billion. Despite that, they fired 400 people this week.

ADVERTISEMENT