Clinica's Complete Guide to Orthopaedics: Volume 2 - Successful Business Strategies for Orthopaedic Companies

Clinica's Complete Guide to Orthopaedics: Volume 2 - Successful Business Strategies for Orthopaedic Companies

Competition is intensifying in the orthopaedics sector. This second volume of Clinica's Complete Guide to Orthopaedics - Successful Business Strategies for Orthopaedic Companies allows you to analyse the strategies of the companies in the orthopaedics sector, by firstly providing an overview of the major events that have taken place in the sector, including merger and acquisition activity.

This report then presents in-depth profiles for the top 16 companies in the orthopaedics sector.

Each profile includes:

Details of the company's orthopaedic products
Company finances
Research and development
Strategies for success

A unique company directory listing contact details for other companies active in the sector is also included.

Successful Business Strategies for Orthopaedics Companies also reviews the technology involved in orthopaedic products and how that technology has influenced product development. It covers hips, knees, shoulders, small joints, tendons and ligaments and fracture management.

Regulations and reimbursement issues are also briefly discussed. The report outlines the regulatory requirements for orthopaedic products in the US, Europe, Japan, France, UK, Spain, Italy, Scandinavia. It also briefly discusses the reimbursement schemes for orthopaedic products in the same countries and the impact they have been having on the market.

Companies profiled: B Braun Melsungen AG; Biomet Inc; Corin Group Ltd; Interpore Cross Int; Johnson & Johnson; Medtronic Inc; Orthofix International; Osteotech Inc; Raymedica Inc; Smith & Nephew; Stryker Corp; Sulzer Medical Ltd; Surgical Dynamics Inc; Synthes-Stratec Inc; Wright Medical Technology Inc; Zimmer Inc.

PUBLISHED: MAY 200
PAGES: 300+
REF: CBS833E
PRICE: £695/$1,460/¥167,000

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CONTENTS
LIST OF TABLES
LIST OF FIGURES
EXECUTIVE SUMMARY
ABBREVIATIONS
ACKNOWLEDGEMENTS

CHAPTER 1 INTRODUCTION
1.1 Aims of the report
1.2 Scope of the report
1.2.1 Companies
1.2.2 Markets
1.2.3 Years covered
1.3 Methodology
1.3.1 Forecasting
1.3.2 Currency exchange
1.4 Factors influencing the orthopaedics industry
1.4.1 Musculoskeletal disease
1.4.2 Technological advances
1.4.3 Population differences
1.4.4 Price pressures
1.4.5 Regulations

CHAPTER 2 INDUSTRY OVERVIEW
2.1 Empire building
2.2 Guerrilla warfare
2.3 Entrenchment
2.4 Retreat
2.5 Weapon development

CHAPTER 3 TECHNOLOGY TRENDS AND CLINICAL DEVELOPMENTS
3.1 Material developments
3.1.1 Hips
3.1.2 Knees
3.1.3 Shoulders
3.1.4 Small joints
3.1.5 Tendons and ligaments
3.1.6 Fracture management
3.2 Designs
3.2.1 Hips
3.2.2 Knees
3.2.3 Shoulders
3.2.4 Fracture management
3.2.5 Arthroscopy
3.2.6 Spine
3.3 Safety
3.3.1 Premarketing requirements
3.3.2 Postmarketing requirements

CHAPTER 4 REGULATIONS
4.1 The US
4.1.1 Premarketing regulations
4.1.2 Postmarketing regulations
4.2 Japan
4.2.1 Japan's medical device regulations
4.3 European Union
4.3.1 EU regulations

CHAPTER 5 COMPANY PROFILES
5.1 Introduction
5.2 B Braun Melsungen AG
5.2.1 Products
5.2.2 Company finances
5.2.2.1 Highlights
5.2.2.2 Regional sales
5.2.2.3 Divisional sales
5.2.3 Research and development
5.2.4 Strategies for success
5.3 Biomet Inc
5.3.1 Products
5.3.2 Company finances
5.3.2.1 Highlights
5.3.2.2 Regional sales
5.3.3 Research and development
5.3.4 Strategies for success
5.4 Corin Group Ltd
5.4.1 Products
5.4.2 Company finances
5.4.2.1 Highlights
5.4.2.2 Regional sales
5.4.3 Research and development
5.4.4 Strategies for success
5.5 Interpore Cross International
5.5.1 Products
5.5.2 Company finance
5.5.2.1 Highlights
5.5.2.2 Regional sales
5.5.3 Research and development
5.5.4 Strategies for success
5.6 Johnson & Johnson
5.6.1 Products
5.6.2 Company finances
5.6.2.1 Highlights
5.6.2.2 Regional sales
5.6.3 Research and development
5.6.4 Strategies for success
5.7 Medtronic Inc
5.7.1 Products
5.7.2 Company finances
5.7.2.1 Highlights
5.7.2.2 Regional sales
5.7.3 Research and development
5.7.4 Strategies for success
5.8 Orthofix International
5.8.1 Products
5.8.2 Company finances
5.8.2.1 Highlights
5.8.2.2 Regional sales
5.8.3 Research and development
5.8.4 Strategies for success
5.9 Osteotech Inc
5.9.1 Products
5.9.2 Company finances
5.9.2.1 Highlights
5.9.2.2 Regional sales
5.9.3 Research and development
5.9.4 Strategies for success
5.10 Raymedica Inc
5.10.1 Products
5.10.2 Company finances
5.10.2.1 Highlights
5.10.3 Strategies for success
5.11 Smith & Nephew
5.11.1 Products
5.11.2 Company finances
5.11.2.1 Highlights
5.11.2.2 Regional sales
5.11.2.3 Divisional sales
5.11.3 Research and development
5.11.4 Strategies for success
5.12 Stryker Corporation
5.12.1 Products
5.12.1.1 Hip implants
5.12.1.2 Knee implant
5.12.1.3 Spinal implants
5.12.1.4 Trauma fixation
5.12.1.5 Bone cement
5.12.1.6 Instruments
5.12.1.7 Endoscopy
5.12.1.8 Biotechnology
5.12.1.9 Other equipment
5.12.2 Company finances
5.12.2.1 Highlights
5.12.2.2 Regional sales
5.12.3 Research and development
5.12.4 Strategies for success
5.13 Sulzer Medica Ltd
5.13.1 Products
5.13.2 Company finances
5.13.2.1 Highlights
5.13.2.2 Regional sales
5.13.3 Research and development
5.13.4 Strategies for success
5.14 Surgical Dynamics Inc
5.14.1 Products
5.14.2 Company finances
5.14.2.1 Highlights
5.14.2.2 Regional sales
5.14.3 Research and development
5.14.4 Strategies for success
5.15 Synthes-Stratec Inc
5.15.1 Products
5.15.2 Company finances
5.15.2.1 Highlights
5.15.2.2 Regional sales
5.15.3 Research and development
5.15.4 Strategies for success
5.16 Wright Medical Technology Inc
5.16.1 Products
5.16.2 Company finances
5.16.2.1 Highlights
5.16.2.2 Regional sales
5.16.3 Strategies for success
5.17 Zimmer Inc
5.17.1 Products
5.17.2 Company finances
5.17.2.1 Highlights
5.17.2.2 Regional sales
5.17.3 Research and development
5.17.4 Strategies for success

CHAPTER 6 STRATEGIES FOR SUCCESS
6.1 Pressures on the industry
6.1.1 Cost constraints
6.1.2 Legislation
6.1.3 Structure of the healthcare systems
6.1.4 Increased competition
6.2 Company strategies
6.2.1 Diversification
6.2.2 Rationalisation
6.2.3 Alliances
6.2.3.1 Alliances with universities
6.2.3.2 Alliances with companies
6.2.3.3 Alliances with medical groups
6.2.4 Mergers
6.2.5 Product targeting
6.2.6 Dedicated instrumentation
6.2.7 Finance management
6.2.8 Purchaser-provider contracts
6.2.9 Distribution agreements
6.2.10 Market analysis
6.2.11 Models
6.3 Conclusion

CHAPTER 7 COMPANY DIRECTORY

APPENDIX 1 EXCHANGE RATES

REFERENCES

EXECUTIVE SUMMARY
The orthopaedics market is undergoing a period of global war. Never before have market pressures caused such conflict in the orthopaedics industry. Price pressures are pushing some of the smaller companies out of the sector all together and setting the larger ones against each other in a bid to seize the 'lion's share' of the market. The prize for those that win is considerable, as the value of the orthopaedics market in 2000 is estimated to be $13.8 billion and the top five companies command over 50% of that market.

With the stakes for success so high, companies are resorting to many of the tactics of war to ensure their survival. These include:

Empire building - increasing their size through mergers and acquisitions to dominate the market and their competition
Guerrilla warfare - moving to the fringes of the market, many smaller companies are surviving in the less high profile product areas
Entrenchment - through developing products in niche areas, which are protected by patents, some companies have grown to a considerable size
Retreat - if one product area has failed to succeed or to compete effectively a number of companies have opted to withdraw from that area to reinforce their position in another
Weapon development - new products and new technologies have often proved to be the key to success, but in order to achieve maximum success, they need to be marketed effectively. For this reason, many companies have formed distribution agreements with other companies
Secrecy - more than ever, orthopaedic companies are keeping details of their finances and strategic plans to themselves
Propaganda - although there is a great deal of silence with regard to some aspects of the industry, takeovers, successful clinical trials and product launches are being publicised more visibly

This report investigates these trends and puts them into the context of their impact on the global orthopaedics market as a whole, and gives examples of some of the companies that have followed these tactics.

When to divest and when to invest have always been difficult decisions to make, but at a time when budgets are under pressure and operating costs are being paired down to create maximum efficiency, the need to make the right decision is becoming more important.

The choice of where to invest in the orthopaedics market appears to be governed by two main factors: the value of the market and the growth of the market.

Due to its high growth and high value many companies are choosing to invest in the spinal market. Three main factors influence the type of new products that enter the orthopaedics market:

Material developments
Design developments
Safety and efficacy results

These three factors have always influenced the development of new devices and an understanding of the history of orthopaedic device development is important as this can help direct the course of research into future products. This is particularly important in prosthetic implant development as an implant can only truly be said to be successful if it lasts throughout the patient's lifetime without any adverse effects. More and more, therefore, researchers are looking back at older designs, which have shown good long-term results, and are combing the best features of those with the best modern technology in order to produce the perfect implant.

Unfortunately, producing a clinically-successful design is no longer a sure road to success - other factors need to be taken into account. These include:

The potential size of the market for the product
The extent of competition in that market
The cost of developing the product compared with its potential sales
The cost of developing a product compared with the resources available to the company
The probability of the product receiving regulatory and reimbursement approval
The ability to distribute the product effectively

A number of the strategies used to overcome the uncertainties associated with the above variables are discussed in the report including the increasing use of sophisticated marketing tools. These include marketing and financial models and methods of cost containment. One method that is often employed to ensure that R&D costs do not exceed the company's resources is to ensure that these expenses are proportional to the company's annual sales. However, the proportion of sales revenue allocated to R&D varies across the industry and this is dependent on the size of the company and the technology they are developing.

In conclusion, the successful orthopaedic companies of today are those that have turned the market forces to their advantage and the successful companies of tomorrow will be those that can anticipate and prepare for change.