J&J, Medtronic and Smith & Nephew executives and orthopedic surgeons said they expect more procedures to move outpatient, while questions about pricing and procedure backlogs loom over the space.
Orthopedics companies are preparing for a return to normal after a few tumultuous years influenced by the COVID-19 pandemic.
Last year, the medtech industry benefited from a “huge backlog of patients and pent-up demand, particularly for knee and hip replacements,” said Ryan Zimmerman, an analyst with BTIG. The year also brought big spine mergers, including the $3.1 billion tie-up between Globus Medical and Nuvasive, as well as planned spinoffs in the sector.
Going into 2024, orthopedics companies face questions about whether they expect the procedure backlog to continue, how they’re pricing equipment amid inflation and tight hospital budgets, and how new technologies will shape the market.
MedTech Dive interviewed orthopedics executives and surgeons about their expectations for this year. Here are five trends they’re watching:
1. Procedure backlogs won’t be a big factor
Orthopedic procedures were delayed during the pandemic, as they were considered elective surgeries. The resulting backlog has led to strong demand for knee replacements, hip replacements and other surgeries, benefiting companies including Stryker and Zimmer Biomet last year.
Whether that backlog continues through 2024 remains to be seen, but companies said they are not including it in their forecasts. Zimmer CEO Ivan Tornos expects a “wonky” first quarter, and “as we think about the rest of the year, we don’t count on backlog,” he told investors at the J.P. Morgan Healthcare Conference in San Francisco earlier this month.
By Elise Reuter | MEDTECHDIVE
Image Credit: real444 / Getty Images