Low-Cost Orthopedic Device Firms Aim To Shake-Up Market

Dow Jones Newswire—July 5, 2011   

An article recently published in Dow Jones Newswires discusses the $37 billion global orthopedics market. They note that the industry dominated by major labels such as Johnson & Johnson and Zimmer Holdings Inc., spends about 42% of sales on selling, general and administrative expenses.
 
The article reports that smaller firms are aiming to cut those costs and therefore provide a much more economical cost for common devices used to repair broken bones such as screws, plates, and drill bits.
 
Though the price-cuts seem ideal at first glance, doctors are approaching new, unproven companies cautiously, especially if they have “made subtle changes to well-known devices.”
 
Hospital for Special Surgery joint replacement surgeon Dr. Michael Parks places quality as his highest standard. Dr. Parks, who is a Zimmer consultant, offers that there is value in knowledge and believes that “company representatives have useful product knowledge in a field where implants and instruments can vary greatly.”

View full article at morningstar.co.uk.