Orthopedics oligopoly
Orthopedic implants (replacement knees, hips, and other joints) are a big and growing business. As surgery gets better and as populations in wealthy countries age, the demand for these devices is growing rapidly, at over 10% a year. As a Wall Street Journal article "Orthopedic Implants Are Hip Bets," 5/6/2006) notes: "Industry projections point to greater demand for years to come, particularly from people under the age of 65. The number of knee replacements - which require less-invasive surgical techniques and shorter recovery periods in the hospital - is expected to jump more than seven times to 3.5 million by 2030 while state-of-the-art hip replacements will rise by 174%,"
And of course, there is an oligopoly in this field. There American companies are the leaders.
- Zimmer Holdings has a 27% market share It acquired Swiss company Centerpulse in 2003.
- Stryker Corp., with a 20% share in the market. The company also sells medical and surgical instruments.
- Medical giant Johnson & Johnson is also a player in the market through its DuPuy subsidiary with an approximately 20% market share.
- US company Biomet has about 12% of the market.
That's four companies with an almost 80% worldwide market share.
Hips and knees account for over 90% of the market, but all the companies are looking to both improve their products and range out into other joints.
Justice Department inquiry into price-fixing allegations, but those seems to have subsided after an investigation that seems to have concluded that there was smoke but no fire.
