Orthopedic device makers posted Wall Street gains today following the release of privately owned Biomet’s preliminary 4th quarter and full-year financial results.
Warsaw, Ind.-based Biomet, considered a beacon of larger trends in orthopedics, said it expects to report a 7% increase in U.S. sales and a 12% increase in international sales for the 4th quarter, although European sales declined 8%.
Net sales rose 5% during the 4th quarter and 4% for fiscal 2012, according to the report.
That’s more good news for orthopedic device makers, which also saw some love when Biomet released strong 2nd-quarter growth earlier this year.
The latest forecast preceded a 0.8% uptick for Wright Medical (NSDQ:WMGI) shares, which closed at $19.60 today, a 1.6% jump for Stryker (NYSE:SYK), which closed at $53.72, and a 2.4% spike for Zimmer (NYSE:ZMH), which closed at $64.48.
Despite a 50% slide in Q2 profits and lowered earnings guidance, JNJ managed to gain 0.8% by the end of the day today, closing at an even $69.
Leerink Swann analyst Richard Newitter last month reported increasing confidence that the U.S. orthopedics market, citing a survey of knee and hip surgeons that found improvements in 12-month procedure volume expectations and increased patient willingness for surgery.
"While not a definitive ‘inflection point,’ the results seem to suggest improving, not just ‘stabilizing,’ U.S. ortho recon volume trends," Newitter wrote in a note to investors.
Group purchasing organization Novation released its trend report for orthopedics earlier this month, finding slowed but continued growth in the market.
Novation predicted 2.7% annual growth for spinal products, but noted declines in hip and knee joint products due to pricing pressures and lackluster innovation.
Biomet’s prelims reported 4% growth in knees, 3% growth in hip devices and 9% growth in spinal sales for the 3 months ended May 31. For the fiscal year, knees increased 3%, hips increased 6% and spine decreased 3%.
The real standout was the company’s sports, extremities & trauma sales, which jumped 14% during the 4th quarter and 13% over the year.