The market for hip and knee implants is stable but mired in a low-growth stage, according to analysts who attended the American Academy of Orthopedic Surgeons conference in San Francisco last week.

Although the abrupt departure of Stryker CEO Steve MacMillan drew the lion’s share of attention at the AAOS event, analysts from Barclays Capital and Leerink Swann agreed that the sector’s outlook calls for low-single-digit growth.

"Net/net, our discussions with surgeons and ortho companies on the hip and knee market largely confirm our expectations for low growth in 2012 (low-single-digit volume growth offset by slightly negative contribution from price/mix)," the Barclays analysts wrote in a note to investors. "In large joint [reconstruction], there was consensus among several companies that the market will likely grow at a more normalized mid-single-digit rate longer-term, given demographic, obesity, and emerging market tailwinds. Comments around volume and hospital utilization largely echoed recent Q4 reports and we estimate that global hip and knee volumes are currently growing in the low single digits."

"Our conversations with companies and physicians at the recent American Academy of Orthopedic Surgeons did not leave us feeling incrementally better or worse about the hip/knee market growth outlook," the Leerink analysts wrote in their own investors’ note. "’Stability’ was the word of the week with respect to ortho recon volume and pricing trends, and we still think it’s too early to call a procedure volume recovery. …The takeaway from AAOS was one of stability with respect to hip/knee procedure volumes, which is also in line with 4Q:11 industry results/commentary. Anecdotally, several surgeons did indicate to us that their surgery backlogs have increased by 1-2 weeks over the past several months. But there was an equal number of observers who indicated that their procedure volumes were actually lower vs. several months ago."

"In 2012, we continue to anticipate ongoing pricing pressures and a still-weak economy will limit any meaningful rebound in hip/knee market growth rates," they added.

 Baxter, Hill-Rom close buyouts

Baxter International (NYSE:BAX) and Hill-Rom Holdings (NYSE:HRC) each closed acquisitions this week.

Baxter said its $325 million buyout of Synovis Life Technologies, announced in December 2011, is a done deal. Hill-Rom said it closed an $85 million deal to acquire Germany’s Völker group, also announced last December.

 BioStart closes down
After closing its wet lab space last July, Cincinnati life science incubator BioStart was hoping to continue to provide business development and support services. But other agencies can deliver those services, meaning BioStart is shutting down completely. Read more

 Medisafe 1 to launch share buyback

Jerusalem, Israel-based

Medisafe 1 Technologies (OTC:MFTH) said it plans to start a 1-year, $1 million share repurchasing program. Read more

 Solos Endoscopy retires 150M shares

Solos Endoscopy (OTC:SOLOS) retired 150 million shares – about 22% of issued and outstanding common shares – held by its officers and directors in exchange for Series B convertible preferred shares. Read more

 Daxor backtracks, will register as investment company

Daxor Corp. (NYSE:DXR) said it will reverse course and accept after all an SEC ruling that it register as an investment company. After first saying it would accede to the ruling, Daxor later filed a petition to have the ruling reviewed, before changing its mind and asking that the petition be withdrawn.

"On further review by the board of directors and our attorneys, it was determined that it was in Daxor’s best interest not to appeal the decision which would be expensive and distracting, and instead register as an investment company. The company will also continue to provide disclosures about its operational activities on a quarterly basis although this is not required as an investment company," according to a press release. Read more

 Analysts’ ups and downs

• Abiomed : Zacks Investment Research maintains "outperform" rating.
• AthenaHealth : Leerink Swann downgrades to "market perform."
• Cynosure :  Leerink Swann raises price target to $21 from $17, maintains “outperform” rating.
• Edwards Lifesciences : Credit Suisse raises rating from "neutral" to "outperform," lowers price target to $88 from $90.
• Hospira :  : Leerink Swann raises price target to $36 from $30, sets “market perform” rating; Barclays Capital maintains $30 target, “equal weight” rating.
• Insulet : Feltl & Co. maintains "buy" rating, raises price target to $22.10 from $18.60.
• Solta Medical :  : Leerink Swann maintains “outperform” rating, raises price target to $4.12.
• Syneron :  : Leerink Swann maintains “outperform” rating, $YY price target, raises estimates;

 Funding Roundup

• Checkpoint Surgical raises a $1.7 million Series B round
• Rockwell Medical prices $17.5 million direct offering
• Cardica prices $15 million public offering
• Halt Medical closes first $20 million of planned $50 million debt/equity round
• BG Medicine inks $15 million facility, touts positive CardioScore study results
• Organovo closes $6.5 million private placement
• Cayenne Medical closes $10 million round
• Warrant exercise brings in $1 million for CardioComm
• EOS Imaging’s IPO raises €40 million
• Asalus Medical Instruments raises £300,000

 Deals Roundup

• Cardinal Health, Cook Medical ink CVC distribution deal
• PositiveID wins AT&T cert for iGlucose system
• EDAP regains Ablatherm-HIFU distribution rights in Canada, Caribbean
• Smith & Nephew acquires Aderma of dermal ulcer pads from Focus Product Development
• GE buys into Pillcam competitor
• Merit Medical buys Ostial Solutions
• Delcath drops $1 million on National Cancer Institute project
• Toshiba America Medical Systems wins 3rd option year on military contract
• Dexcom, Tandem Diabetes ink development deal
• Cutera Medical closes Iridex buyout
• Adocia seeks diabetic foot ulcer partner
• Syneron buys Ultrashape for $12 million
• Wound Management Technologies sells Secure eHealth subsidiary
• Dentsply wins 2nd option year on $16 million military contract
• Titan Medical inks licensing deal with Columbia
• NovaRay Medical signs ScanCath distribution deal for China