Stryker, Johnson & Johnson’s DePuy Synthes and Zimmer Biomet top the list of largest orthopedic device companies.

Adobe Stock 3D illustration of man feeling leg pain with joints highlighted some areas of treatment for largest orthopedic device companies in the world
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With elective procedure numbers rebounded after the darkest days of the COVID-19 pandemic, most of the world’s largest orthopedic device companies saw their revenues increase by double-digit percentages during their most recent fiscal years.

Here are the world’s 10 largest orthopedic device companies, ranked by ortho business revenue pulled from their most recent annual reports:

Largest orthopedic device companies Annual revenue (% change) Headquarters
1 Stryker $17.1 billion (+19.2%) Kalamazoo, Michigan
2 Johnson & Johnson – DePuy Synthes $8.6 billion (+10.6%) Locations: Raynham, Massachusetts.; West Chester, Pennsylvania; Warsaw, Indiana; Palm Beach Gardens, Florida
3 Zimmer Biomet (minus ZimVie spinoff) $6.8 billion (+11.6%) Warsaw, Indiana
4 Medtronic – Cranial & Spinal Technologies $4.5 billion (+3.9%) Locations: Memphis, Tennessee; Louisville, Colorado
5 Smith+Nephew – (Orthopaedics + Sports Medicine) $3.7 billion (+14.3%) London
6 Enovis (Formerly Colfax’s Medical Technology segment, including DJO) $1.4 billion (+27.3%) Wilmington, Delaware
7 NuVasive $1.1 billion (+8%) San Diego
8 Globus Medical $958 million (+21.4%) Audubon, Pennsylvania
9 ZimVie (Spine business) $540 million (+2.1%) Westminster, Colorado
10 Orthofix $465 million (+14.2%) Lewisville, Texas

And here is more about how the top companies are doing:

1. Stryker

With a strong order book for capital equipment and implant sales momentum, Stryker recently boosted its revenue projections for 2022, predicting organic sales growth between 8% and 9% for the year. The world’s largest orthopedic device company, however, scaled back its earnings range amid the foreign currency exchange environment. As with most manufacturers, the supply chain is presenting challenges, too.

“We continue to invest in R&D at a healthy ratio of sales, demonstrating our continued focus on new product pipelines,” CEO Kevin Lobo said during Stryker’s Q2 2022 earnings call on July 26. Company officials are also excited about the synergies that Stryker is already realizing from its $3.1 billion acquisition of Vocera Communications — provider of digital care coordination and communication offerings, including the hands-free Vocera Smartbadge.

At DeviceTalks Boston in May, four Stryker executives shared how the company thinking differently about medical product development and how health care providers and patients will ultimately use them.

2. Johnson & Johnson – DePuy Synthes

DePuy Synthes officials see the Johnson & Johnson business better enabling the personalization of orthopedic surgery — and creating better outcomes. That was a big takeaway when five J&J executives spoke about the shift toward digital at DeviceTalks Boston in May.  “We’re not adopting technology just for technology’s sake. We’re adopting technology because it’s meeting clear, unmet needs,” said Rajit Kamal, worldwide president, sports medicine/shoulder reconstruction at DePuy Synthes.

Recent DePuy Synthes wins include the Inhance system receiving FDA clearance for total shoulder arthroplasty and adding the Cementless Fixed Bearing knee and Medial Stabilized knee to its Attune Knee portfolio. The company is betting it can compete in the ortho surgical robotics space with its Velys system, which could help reduce the physical burden of orthopedic surgery. Earlier this year, DePuy Synthes acquired Tennessee-based CrossRoads Extremity Systems and its range of procedure-specific, sterile-packed implants and instrumentation systems cleared for lower extremity indications.

3. Zimmer Biomet

Zimmer Biomet has had a great deal of news over the past year. It spun off its dental and spine business as ZimVie in March. ZB has also introduced new ortho surgical offerings based on AI and mixed reality. They are also pioneering smart ortho device implants, being the first to offer smart knee implants. But in May, senior research analyst Mike Matson at Needham & Co downgraded ZBH shares because he thought inflationary pressure on Zimmer Biomet’s gross margin will carry into 2023, resulting in slow EPS growth until at least 2024. “In addition, ZBH has been losing share in its hip and knee business, and we’re not sure what will reverse this trend.”

4. Medtronic – Cranial & Spinal Technologies

In the spine space, Medtronic has enjoyed record quarters with its Mazor robotics system and StealthStation navigation system, CEO Geoff Martha said during the medtech giant’s Q4 earnings call in May. “The ongoing launch of our Catalyft expandable titanium interbody system and the rollout of our enabling technologies continues to differentiate us in spine,” Martha said. Recent spine wins for Medtronic include FDA 510(k) clearance and breakthrough device designation for its LigaPASS 2.0 ligament augmentation system for spine surgery and FDA clearance of its UNiD spine analyzer v4.0 planning platform. On the flip side, the spine business was facing slowing distributor purchases in China ahead of a potential national volume-based tender as the Chinese government seeks to better rein in healthcare costs.

5. Smith+Nephew

Smith+Nephew’s most recent earnings report showed an overall loss in revenue, and its orthopedics business experienced a revenue decline of 1.1% in Q2, noting supply chain challenges and a new hip and knee volume-based procurement program in China. However, company officials say they have a strategy to grow the orthopedics business.

“Orthopedics continues to be held back by execution and supply chain challenges. In the last three months, I have reviewed the business and, together with the team, we have developed a comprehensive plan to drive better execution at pace,” CEO Deepak Nath said in a recent earnings release.

The plan includes initiatives such as driving operational benefits in orthopedics deliver on its transformational strategy. Smith+Nephew also recently invested in its orthopedics business by building a new $100 million manufacturing facility in Malaysia.

Senior editor Danielle Kirsh contributed to this report.