The goal of Stryker’s Mako robotic-arm assisted surgery is to provide more predictable outcomes. [Image courtesy of Stryker]
Two of the world’s largest orthopedic device companies expect accelerated revenue growth this year.
Stryker and Zimmer Biomet both upped their 2023 guidance during recent earnings calls, a sign that orthopedic procedures are bouncing back from the COVID-19 pandemic.
GlobalData predicted earlier this year that the recovery will lift the ortho devices market to nearly $50 billion this year. The question is whether companies can continue the momentum. Stryker and ZB are betting on innovation, building arrays of products and services around their surgical robotics systems and surgical planning and digital health tools.
During Zimmer Biomet’s second-quarter earnings call, CEO Bryan Hanson noted that ZB has 40 planned product launches between this year and the end of 2025, the majority in 4%-plus growth markets.
Stryker meanwhile seeks to harness data collection and analysis to help surgeons personalize procedures for individual patients to improve outcomes, according to Robert Cohen, president of Stryker’s Digital, Robotics and Enabling Technologies organization.
Listening to Cohen one can sense urgency to innovate at the world’s largest ortho device company.
“It doesn’t matter how big Stryker is. It doesn’t matter how long Stryker has been around. A slow company will fail,” Cohen said earlier this year.
Here are the world’s 10 largest orthopedic device companies, ranked by ortho business revenue pulled from their most recent annual reports:
| Largest orthopedic device companies | Annual revenue (% change) | Headquarters or significant locations | |
|---|---|---|---|
| 1 | Stryker | $18.4B (+7.8%) | Kalamazoo, Michigan |
| 2 | Johnson & Johnson – DePuy Synthes | $8.6B (0%) | Locations: Raynham, Massachusetts.; West Chester, Pennsylvania; Warsaw, Indiana; Palm Beach Gardens, Florida |
| 3 | Zimmer Biomet | $6.9B (+1.6%) | Warsaw, Indiana |
| 4 | Medtronic – cranial and spinal technologies | $4.5B (0%) | Locations: Memphis, Tennessee; Louisville, Colorado |
| 5 | Smith+Nephew (orthopaedics and sports medicine) | $3.6B (0%) | London |
| 6 | Enovis | $1.6B (+10.0%) | Wilmington, Delaware |
| 7 | NuVasive * | $1.2B (+6%) | San Diego |
| 8 | Globus Medical * | $1.0B (+6.8%) | Audubon, Pennsylvania |
| 9 | Orthofix (merged with SeaSpine) | $698M (+6.5%) | Westminster, Colorado |
| 10 | ZimVie (spine business) | $450M (-16.8%) | Lewisville, Texas |
*As of the writing of this article in mid-August, NuVasive and Globus Medical planned to merge during Q3 2023.
Here are the available 2023 growth projections for the companies:
- Stryker: 9.5–10.5% organic net sales growth;
- Zimmer Biomet: 6.5–7.0% revenue growth;
- Enovis: 7–7.5% organic revenue growth;
- NuVasive: 6–8% revenue growth;
- Globus Medical: 10% revenue growth ($1.125B);
- Orthofix: 7.7–8.6% net sales growth ($752–758M).
Watch out for more Medtech Big 100 data posting soon on Medical Design & Outsourcing.
