ORTHOPEDICS THIS WEEK
VOLUME 12, ISSUE 27 | AUGUST 23, 2016
2
Orthopedic Power Rankings
Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies
THIS WEEK: A remarkable chapter in orthopedics history came to close last week when the private equity investors,
which originally included Biomet founder Dane Miller, finally cashed out their 2007 investment in the company Dane
co-founded and ran for so many years. Zimmer had acquired Biomet from that investor group in 2015. Dane Miller,
who passed away in 2015, was part of that group—having been kicked out of the company in the preceding year. With
this sale, the Biomet chapter comes to a close.
RANK
LAST
WEEK
COMPANY
1
1
Integra
LifeSciences
14.64%
2
2
Exactech
3
3
Zimmer
Biomet
4
TTM OP
MARGIN
30-DAY
PRICE CHANGE
COMMENT
7.18%
Podiatry Today Awards Integra’s OmniGraft Dermal
Regeneration Matrix a Top Ten Innovation for 2016.
9.20
2.06
At mid-year, EXAC is reporting remarkable earnings
growth. Earnings at this Florida company are rising
3x faster than sales.
21.42
1.02
ZBH’s M&A skills in full view with the LDR acquisition.
Now comes the purchase of biomarker and immunoassay
company CD Diagnostics. Highly strategic buys.
(1.93)
With the July unveiling of Mazor’s new robot, MDT
invested another $20 million. Again, a spine
robot is coming to an OR near you.
6
Medtronic
20.51
5
7
MicroPort
Scientific
3.08
19.26
MicroPort earned $4 million for the six months ended
30 June 2016—up dramatically from a $2.59 million
net loss for the same period last year.
6
5
Stryker
22.89
(7.02)
On the heels of a strong Q2 sales report (up 16.8%),
SYK declares a 10% increase in its cash dividend to
shareholders. Now paying $1.72/share per year.
7
4
Smith &
Nephew
18.40
(4.36)
SNN’s stock price has not risen in line with sales and
earnings. As a result, SNN stock valuation is among
the lowest in orthopedics.
8
9
Orthofix
8.37
(7.41)
For the 2nd quarter of this year, OFIX beat the analyst’s
earnings estimates by 24%. Every single quarter this year,
OFIX has beaten the analyst consensus earnings estimate.
9
8
Johnson &
Johnson
27.22
(3.53)
JNJ price has risen so far that it is the most expensive
stock on the Power Rankings. In one year, JNJ is up 25%.
Plus the 3% dividend yield = 28% total.
10
10
Globus
Medical
30.58
(13.35)
Globus just doubled its international business with an
accretive purchase of ATEC’s international business.
Wall Street just doesn’t fully appreciate GMED.
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