The COVID-19 pandemic was especially brutal for the orthopedic device industry. Many of the largest companies in the space saw double-digit percentage declines in revenue in 2020. Health providers delayed or canceled elective procedures to focus on the pandemic, and patients stayed away in droves.
It’s a new year now, though, and vaccines are rolling out. People don’t want to live with a bad knee or hip or back forever. Growth will eventually return for the industry, and orthopedic device companies are positioning themselves to be ready.
SVB Leerink senior research analyst Richard Newitter thinks there may have been more setbacks in January and February, but there is optimism for the rest of the year. “Orthopedic particularly will get an extra wind at the back from deferred procedures. There will be a boost beyond whatever normal looked like.”
Rather than hunkering down during the pandemic, many ortho device companies chose shop for new technologies and major M&A deals. They’re reorganizing and launching new products ranging from surgical robots to smart implants.
“Despite the procedure volatility in the last year, many companies found creative ways to launch new products and continued to invest in innovation. As volumes normalize, we think those companies will come out on the other side stronger, and they will be prepared to support the rebound we expect in the coming quarters,” said Truist analyst Kaila Krum.
Read on and discover the latest about the world’s 10 largest orthopedic device companies.
This article originally ran on April 23, 2021. Updated April 27 to include Stryker Q1 2021 results.