IBJNews

Zimmer looks to China to reignite growth

Back to TopCommentsE-mailPrintBookmark and Share

Zimmer Holdings Inc. completed an acquisition in China on Tuesday, but recession hangovers in the United States and Europe are trumping all other factors and keeping the company’s growth bottled up for now.

Warsaw-based Zimmer’s sales have been flat as jobless Americans have come in for fewer knee and hip replacements, and prices have been falling by 1 percent-2 percent annually in recent years.

“The next couple quarters are likely to be a tough slog for the orthopedic-implant manufacturers, and it is becoming clearer that only a strengthening economy will turn this ship around,” wrote David Turkaly, an analyst at Susquehanna International Group in New York. He—and Zimmer—had hoped that a raft of new products would juice sales, but now Turkaly isn’t buying that.

“While we maintain our bullish outlook on the longer-term outlook for orthopedics (a growing population of older, active patients), near-term performance is likely to remain choppy,” Turkaly added.

Zimmer is the world’s largest seller of orthopedic implants, but Turkaly prefers smaller rival Stryker Corp., based in Kalamazoo, Mich., because 40 percent of its sales come from medical-surgical products, which have been less affected by the recession.

Stryker is keen to keep Zimmer from growing in those markets. Stryker sued Zimmer this month in federal court in New York, alleging that Zimmer had infringed some of its patents on wound-care products.

But Zimmer is trying to diversify into emerging markets. That’s why it acquired Beijing Montagne Medical Device Co. Ltd. That company makes hip and knee implants, as well as powered surgical instruments, tailored to the Chinese market.

In the third quarter, Zimmer’s revenue fell 1 percent to $965 million. The company earned a quarterly profit of $191 million.

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. why oh why does this state continue to elect these people....do you wonder how much was graft out of the 3.8 billion?

  2. i too think this is a great idea. I think the vision and need is there as well. But also agree with Wendy that there may be better location in our city to fulfill this vision and help grow the sports of hockey and figure skating in Indy. Also to help further develop other parts of the city that seem often forgotten. Any of the other 6 townships out side of the three northernmost could benefit greatly from a facility and a vision like this. For a vision that sounds philanthropic, the location is appears more about the money. Would really like to see it elsewhere, but still wish the development the best of luck, as we can always use more ice in the city. As for the Ice growth when they return, if schedules can be coordinated with the Fuel, what could be better than to have high level hockey available to go see every weekend of the season? Good luck with the development and the return of the Ice.

  3. How many parking spaces do they have at Ironworks? Will residents have reserved spaces or will they have to troll for a space among the people that are there at Ruth Chris & Sangiovese?

  4. You do not get speeding ticket first time you speed and this is not first time Mr.Page has speed. One act should not define a man and this one act won't. He got off with a slap on the wrist. I agree with judge no person was injured by his actions. The state was robbed of money by paying too much rent for a building and that money could have been used for social services. The Page family maybe "generous" with their money but for most part all of it is dirty money that he obtained for sources that are not on the upright. Page is the kind of lawyer that gives lawyers a bad name. He paid off this judge like he has many other tine and walked away. Does he still have his license. I believe so. Hire him to get you confiscated drug money back. He will. It will cost you.

  5. I remain amazed at the level of expertise of the average Internet Television Executive. Obviously they have all the answers and know the business inside and out.

ADVERTISEMENT