Medtronic, Stryker, Zimmer Biomet, DePuy Synthes, Smith & Nephew: Who had the best 2016? 28 things to know

Spinal Tech

In an exciting year for healthcare, orthopedic device companies underwent mergers and acquisitions, strove to find the most innovative solutions and made calculated decisions in the hopes of achieving long-term success as the market becomes increasingly competitive. So who had the best 2016?

Here are 28 things to know from the largest orthopedic companies.




1. The full year net sales growth was 13.9 percent to $11.3 billion. Reported net earnings per share increased 15.1 percent in the full year to $4.35.


2. The company expects 2017 organic sales to grow between 5.5 percent and 6.5 percent to reach $1.40 to $1.45 in the first quarter and between $6.35 and $6.45 for the full year.


3. Full year sales in the U.S. rose 15.9 percent to $8.2 billion while international sales rose 8.8 percent to $3 billion.


4. Orthopedics garnered $4.4 billion in the full year, a 4.7 percent rise from 2015. Stryker's MedSurg line net sales were up 25.6 percent to $4.9 billion. Full year spine and nanotechnology sales jumped 9.9 percent to $2 billion.


5. Full year sales in the orthopedic specialties hit:


  • Knee: up 6.2 percent to $1.5 billion
  • Hips: up 1.5 percent to $1.2 billion
  • Trauma and extremities: up 5.7 percent to $1.3 billion
  • Other: up 7.3 percent to $285 million
  • Spine: up 1.8 percent to $754 million


6. Stryker acquired Sage Products and Physio-Control International in 2016, adding $740 million to its consolidated net sales in the full year.


Zimmer Biomet

7. Zimmer Biomet's full year net sales growth of $7.6 billion is a 28.1 percent increase. Net sales in the Americas were up 31.1 percent in 2016 to $4.8 billion.


8. Knee product sales totaled $2.7 million, a 20.9 percent increase from the previous year. Hip products sales saw a 21.8 percent increase from 2015, bringing in $1.8 million.


9. Full year sales in the Americas increased by 28.1 percent to $4.8 million.

10. The company expects full-year constant currency revenue to increase between 3.7 percent and 4.7 percent in 2017. It believes revenue will increase between 2.2 percent and 3.2 percent to hit $7.855 billion to $7.930 billion.


11. In July, Zimmer Biomet launched Signature Solutions, a comprehensive suite of clinical services and technologies designed to help hospitals and medical practices with the transition to value-based care models, including bundled payments.


12. Medtronic reported revenue of $28.8 billion in the 2016 fiscal year, ending April 29, 2016, an increase of 42 percent.


13. Spine revenue was flat for the 2016 fiscal year, hitting $737 million. The company reported strong growth in US Infuse revenue, but the company's InductOs ship hold in Europe lead to an $8 million loss in revenue for the fourth quarter.


14. Medtronic expects foreign currency translation to decrease revenues by roughly 1.5 percent. The company expects fiscal year 2017 diluted non-GAAP EPS in the $4.60 to $4.70 range, including a negative foreign currency impact.     


15. The company's outlook for 2017 includes expected EPS growth between 12 percent and 16 percent. Constant currency revenue growth is expected to be between 5 percent and 6 percent, but Medtronic expects a negative impact from foreign currency in 2017, with roughly $25 to $75 million hinging on current exchange rates.


16. In July 2016, Medtronic achieved FDA approval for two-level Prestige cervical disc procedures, making it the second cervical disc to receive FDA clearance for two-level disc replacements

Smith & Nephew
17. Smith & Nephew's full year revenue results jumped 1 percent to $4.6 billion from last year. The full year trading and operating profit was $801 million.


18. The company expects revenue to grow between 1.2 percent and 2.2 percent in 2017 with underlying revenue increasing by 3 percent to 4 percent.


19. The established markets revenue grew 3 percent in the U.S. and emerging markets revenue was flat in 2016. The company foresees long-term growth potential in its chosen emerging markets.


20. In 2017 the company expects to revenue to increase by 1.2 percent to 2.2 percent and underlying revenue to increase by 3 percent to 4 percent. Improvement in 2017 trading profit margin is expected to be in the 20 bps to 70 bps range.


21. The company's strategy for the coming year includes increasing innovation and continuing to optimize global manufacturing to strengthen its supply chain, upgrade its IT infrastructure and deliver business services.

22. Smith & Nephew launched the ANTHEM Total Knee System on a broader scale and supported a strong fourth quarter in emerging markets. Smith & Nephew's investment in the REDAPT Revision System and POLARSTEM Cementless Stem System will help it in 2017.

23. The company purchased Minneapolis-based Blue Belt in 2016, strengthening its knee implant portfolio. Blue Belt's top product, the Navio system, delivered 50 percent revenue growth on the year. Smith & Nephew sold its gynecology business to Medtronic for $350 million of additional revenue.


Johnson & Johnson
24. Full year sales for Johnson & Johnson's orthopedics line increased by 0.8 percent in 2016, reaching $9.3 billion. U.S. orthopedics sales hit $5.5 billion in the full yearup 2.6 percent while international sales dropped 1.8 percent to $3.8 billion.


25. Knee sales increased 1.9 percent globally to $1.5 million and sales of spine and others decreased by 0.7 percent to $3.8 million.


26. Hip sales were up 2.2 percent to $1.3 billion while trauma sales were up 1.6 percent to $2.5 million.


27. In May 2016, DePuy Synthes acquired BioMedical Enterprises, a small bone fixation company.


28. DePuy Synthes entered into an exclusive strategic alliance with Value Stream Partners in March 2016 focused on helping providers transition to bundled payments and value-based care.


More articles on devices:

Integra LifeSciences to distribute devices in India — 4 notes

Orthopedic navigations systems market to reach 303.7M: 5 key notes

Mako robotic-arm system improves accuracy in total knee replacement — 5 notes

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