The executives of three orthopedic implant manufacturers have publicly expressed three different views on the effects that the current economic climate will have on the elective surgery market over the coming year.
Speaking at a healthcare symposium convened by financial services firm J.P. Morgan on Jan. 14, Stephen P. MacMillan, president and CEO of Stryker Corp., said that economic uncertainty and a rise in unemployment might well cut into the demand for elective surgery in 2009 and consequently the approximately $11 billion market for hip and knee replacement components, according to a published report.
"We’d be foolish not to assume some kind of slowdown as we go into this year," said Mr. MacMillan. In spite of disappointing returns for the company’s medical and surgical products business in the final quarter of 2008, he said he believed the outlook would improve in future years.
At the same symposium, James T. Crines, chief financial officer of Zimmer Holdings, said he also foresaw slow growth in his industry for 2009. But he added that the dynamics influencing the growth might not change greatly over the long term.
On the contrary, Jeffrey R. Binder, president and CEO of Biomet, said he didn’t see as dire a horizon ahead in a quarterly conference call. "I’m not hearing significant concern among our customers about their case volumes as they can see them, which is over a couple months," he was quoted as saying.
—David Bernard
