A collapsed $34 billion orthopedic merger, a nearly $24 million executive payout and a lowered sales forecast were among the developments reshaping spine and orthopedic device companies in October.
The month also brought new legal scrutiny, a major surgical robotics investment and raised questions about the future of spinal implant businesses.
Here are six developments Becker’s reported:
- J&J and Smith & Nephew’s $34 billion merger talks collapse. Johnson & Johnson and Smith & Nephew were nearing an agreement to combine their orthopedic businesses before disagreements over leadership derailed negotiations. The proposed deal valued J&J’s orthopedic division at up to $22 billion, with J&J shareholders set to own 50.1% of the combined company. J&J is now leaning toward spinning off its orthopedic business as a separately listed company.
- Orthofix pays nearly $24 million to three former executives. Spine device maker Orthofix Medical paid approximately $24 million to former CEO Keith Valentine, former CFO John Bostjancic and former Chief Legal Officer Patrick Keran following disputes over their 2023 terminations. The payments included settlements and arbitration awards, while separate litigation involving former board leadership remains ongoing.
- Stryker cuts 2026 growth forecast. Stryker lowered its full-year organic sales growth outlook to 6.5% to 7%, down from 8.3% to 9.3%, after third-quarter results fell short of internal expectations. Hip sales declined 1% to $453 million, while knee sales increased 1.1% to $635 million. Overall quarterly revenue rose 7.7% to $6.5 billion.
- Zimmer Biomet faces continued scrutiny over sales commissions. A federal judge allowed portions of a whistleblower lawsuit against Zimmer Biomet to proceed, finding sufficient evidence for a jury to consider whether payments to independent sales representatives violated federal anti-kickback law. The lawsuit alleges the company improperly used commissions to influence the use of orthopedic products. The ruling did not establish liability.
- Stryker bets $400 million on surgical robotics. Stryker announced plans to invest approximately $400 million in U.K.-based CMR Surgical through an agreement that also gives it an exclusive option to acquire the company. The partnership would make Stryker the exclusive U.S. sales agent for CMR Surgical’s Versius robotic surgery portfolio. The transaction remains subject to regulatory approvals and closing conditions.
- Abbott and Nevro spinal cord stimulator lawsuits move to federal courts. A federal judicial panel consolidated 49 lawsuits involving spinal cord stimulation devices into separate proceedings for Abbott and Nevro. The lawsuits allege device malfunctions and injuries, including painful shocks, nerve damage and repeat surgeries. Abbott disputed the allegations and defended the safety and performance of its devices. The claims have not been established in court.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
