The orthopedic industry’s largest firms adapt to new market realities to survive on top.
Every great challenge begets an equally grand opportunity. The Great Recession was quite prolific in that regard, providing the world’s largest corporations with the rare chance to restructure and become more efficient. The orthopedic behemoths on this year’s Top 10 list took full advantage of that opportunity, parlaying reduced labor costs and low interest rates to boost productivity and strengthen their balance sheets. But to regain their mojo, the companies—and industry as a whole—were forced to revamp their business models to reflect a radically different environment. The market needle that once was so closely tied to groundbreaking new products now only budges for devices or implants that provide real solutions to physicians, hospitals, insurers and patients. “Novel products are no longer reimbursed without also proving that they are contributing to better healthcare at a reasonable cost,” Rudy Dekeyser, managing partner at LSP Health Economics Fund, told EY in its 2013 “Pulse of the Industry” report. To prosper in the current healthcare landscape, orthopedic firms must position themselves as more than mere providers of a single good or service. The value proposition comes from being a problem-solver—a partner that can demonstrably improve health outcomes in cost-efficient ways. These top 10 orthopedic companies are doing just that, either through acquisitions, divestitures or forays into new treatment areas. As a famous naturalist once noted, it’s not the strongest of the species that will survive, nor the most intelligent, but rather the ones most adaptable to change.
Editor’s note: As you read our report, please take note that any foreign currency conversions were calculated based on the exchange rate at the end of the fiscal reporting period being disucssed.
Top 10 Orthopedic Device Companies
|1.||DePuy Synthes||$9.5 billion|
|4.||Smith & Nephew||$4.4 billion|
|5.||Medronic Spine||$3.1 billion|
|8.||Integra LifeSciences||$836 million|
|10.||Globus Medical||$435 million|
Selected from Editorial Director Christopher Delporte & Managing Editor Michael Barbella