J&J, other orthopedics companies faced unequal pandemic recovery in second quarter

August 17, 2022 Business, COVID-19, Joint Replacement, Medical Devices, Orthopedics

While some businesses benefited from rising procedure volumes, they still grappled with shortages of supplies and tightening hospital budgets.

Orthopedics companies such as Johnson & Johnson benefited from rising procedure volumes in the second quarter, even as foreign-exchange rates, material costs and supply chain issues continued to weigh on their earnings.

Based on second-quarter results from Johnson & Johnson, Stryker, Smith & Nephew and Zimmer Biomet, the global market for joint reconstruction increased 6.9% in the quarter from the year-earlier period, analysts at RBC Capital Markets wrote in an Aug. 5 research note.

Still, it was an unequal recovery as Stryker and Zimmer gained share, while J&J and Smith & Nephew lagged, the analysts wrote. For Stryker and Zimmer, knee and hip procedures in the second quarter climbed from a year earlier, while J&J and Smith & Nephew reported a decrease in both.

“On the implant side, we’re feeling pretty good. Procedures are largely back to normal in most parts of the world. And really it’s about the hospital staffing,” Stryker CEO Kevin Lobo said in a July 26 earnings call. “If that staffing gets better, then obviously there’s a lot of pent-up demand for procedures and we’re feeling very good about our position in those businesses.”

Surgical robots

Orthopedics companies reported steady demand for surgical robots, even as Intuitive Surgical warned that placements of its robots dropped as hospital budgets tightened. Both Stryker and Zimmer Biomet said they had strong customer pipelines, but more hospitals were turning to renting or financing large equipment rather than purchasing it outright. Both companies reported a decrease in revenue in the quarter for their segments that contained robotics.

By Elise Reuter | MEDTECH DIVE

Image Credit: ChooChin / Getty Images

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About Peter Coffaro 368 Articles

Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and MedReps.com. Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.