15 Largest Orthopedic Companies in the World

In this article, we will take a look at the 15 largest orthopedic companies in the world.

The orthopedic industry has staged a comeback in the last two years following a dismal 2020 due to the lockdowns and restrictions during the COVID-19 pandemic. During 2021, the orthopedic industry saw its annual top line increase by 12.8% year-over-year (YoY) or $6.1 billion to $53.6 billion. The orthopedic industry has also faced supply-chain-related challenges. However, experts still anticipate YoY growth of 3.2% in 2022 to take the orthopedic industry sales to $55.3 billion. The growth rate for 2022 is in-line with the historical growth before the COVID-19 pandemic.

It must be noted that the top 25 largest orthopedic companies in the world account for 80% of the industry’s top line. Amongst the top 25 companies, there is a significant variance as Stryker Corporation (NYSE:SYK) leads the industry with annual revenue of $8.9 billion. Meanwhile, SeaSpine occupies the position of the 25^th largest orthopedic company in the world, with an annual top line of $191 million. The global orthopedic industry comprises more than 1,000 companies. The industry can be broken down into five key segments, namely joint replacement, ortho biologics, spine, sports medicine, and trauma. Amongst these segments, joint replacement is the biggest, with total revenue of $19.42 billion in 2021. The top 25 companies have an 87.8% market share in this segment. Meanwhile, the smallest segment in the orthopedic industry is the ortho biologics segment, with a total top line of $5.22 billion as of 2021. The top 25 companies have a 59.8% market share in this segment.

The recovery of the orthopedic industry hinges on important market forces. The first market force is related to hospital staffing issues. The COVID-19 pandemic created a shortage of healthcare resources, dampening the road to recovery for the orthopedic industry. Another key market force is the global supply chain challenges, while the third market force is the slow decline in the procedure backlog. Experts anticipate the procedure backlog to ease in late 2022 and early 2023 as the challenges related to hospital staffing and supply chain ease. Some of the largest orthopedic companies in the world include Medtronic plc (NYSE:MDT), Stryker Corporation (NYSE:SYK), and Smith & Nephew plc (NYSE:SNN).

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Our Methodology

In this article, we will discuss the 15 largest orthopedic companies in the world based on their orthopedic revenue in 2021. We have considered both public and private companies in this list. The companies have been ranked in ascending order of their annual revenue.

Largest Orthopedic Companies in the World

15. Bioventus Inc. (NASDAQ:BVS)

2021 Orthopedic Revenue: $500 million

Bioventus Inc. (NASDAQ:BVS) is a Durham, North Carolina-based medical device company that develops and commercializes clinical treatments related to non-surgical joint pain injection therapies along with peripheral nerve stimulation products.

In the field of surgical solutions, the company provides bone graft substitutes to join and grow bones that enhance the outcomes of spinal and other orthopedic surgeries. Bioventus Inc. (NASDAQ:BVS) is protected from competitors by the diversity of its portfolio, which also enables the company to evolve around its core products. Analysts think high earnings and free cash flow (FCF) growth potential have not yet been factored into the stock price.

As of Q3 2022, Juniper Investment Company is the biggest hedge fund holder of Bioventus Inc. (NASDAQ:BVS) stock, with a stake of over $9.12 million. This is equivalent to 5.4% of the current market capitalization of the company. On a quarter-over-quarter (QoQ) basis, the hedge fund increased its stake in Bioventus Inc. (NASDAQ:BVS) by 23%, and it takes up nearly 20% of Juniper Investment’s portfolio.

14. CONMED Corporation (NYSE:CNMD)

2021 Orthopedic Revenue: $550 million

CONMED Corporation (NYSE:CNMD) is a Utica, New York-based medical technology corporation involved in developing and commercializing surgical solutions and tools.

Experts believe that the growth drivers for CONMED Corporation (NYSE:CNMD) are strong as its growth rates, along with the earnings power, are amongst the highest in mid-cap medical technology companies. During the most recent earnings call, the management showed its intention to expand its products and services for the orthopedic industry. CONMED Corporation (NYSE:CNMD) is a key player in the field of sports medicine and has a strategic partnership with Musculoskeletal Transplant Foundation (MTF).

Millennium Management raised its stake in CONMED Corporation (NYSE:CNMD) by 273% during the third quarter of 2022.

13. Medacta

2021 Orthopedic Revenue: $600 million

Medacta is a Castel San Pietro, Switzerland-based manufacturer of medical equipment that is involved in the designing, production, and distribution of orthopedic products related to joint replacements, spine surgery, and sports medicine. The company has a presence in over 40 countries.

The company’s NextAR Spine application won the 2022 Spine Technology Award from “Orthopedics This Week.” The augmented reality surgical platform of Medacta is the company’s second product that won the prize. The complete system has 3D imaging capabilities and smart glasses to improve the field of vision of the surgeon. The first surgery with the platform was performed in May 2022 in Lebanon, New Hampshire, following approval from the US Food and Drug Administration (FDA).

12. Acumed

2021 Orthopedic Revenue: $700 million

Acumed is a privately-held Hillsboro, Oregon-based orthopedic medical device manufacturer founded in 1988. Colson Medical LLC is the parent organization of Acumed which itself is a wholly owned subsidiary of Marmon Holdings, a Berkshire Hathaway Inc (NYSE:BRK-B) company.

Acumed claims that it manufactures 90% of the implants in the US. The popularity of Acumed’s products can be gauged by the fact that the company claimed that its Acu-Loc Wrist plating product was used for the one-millionth time by a surgeon in Jacksonville Beach, Florida, in September 2022. Acumed is expanding its offerings by acquiring ExsoMed, which is considered an expert in the field of hand-related surgeries.

11. Enovis Corporation (NYSE:ENOV)

2021 Orthopedic Revenue: $800 million

Enovis Corporation (NYSE:ENOV) is a Wilmington, Delaware-based medical technology company founded in 1995 with a keen focus on orthopedics.

In a research note issued on January 3, Vijay Kumar at Evercore ISI increased the price target on Enovis Corporation (NYSE:ENOV) from $58 to $68 and reiterated an Outperform rating on the stock. Furthermore, the analyst added Enovis Corporation (NYSE:ENOV) stock to the “TAP Outperform” list before its Q4 2022 results. According to consensus estimates, Enovis Corporation (NYSE:ENOV) is expected to report revenue and adjusted EPS of $415.79 million and 65 cents, respectively. Despite the tough macroeconomic environment, the company is experiencing expansion in margins due to strong operational plans and an innovative management approach.

Here’s what Diamond Hill Capital said about Enovis Corporation (NYSE:ENOV) in its Q3 2022 investor letter:

“Enovis Corporation (NYSE:ENOV)’s stock underperformed this quarter after the company reported disappointing Q2 2022 results and lowered its full year guidance. Inflation and lingering COVIDrelated headwinds caused revenue and gross margins to come in lower than expected. While recent results are mildly disappointing, we believe the macro headwinds Enovis is facing are starting to abate. Additionally, the company can use its business system to create substantial value over time via M&A and continuous improvement.”

10. Orthofix Medical Inc. (NASDAQ:OFIX)

2021 Orthopedic Revenue: $800 million

Orthofix Medical Inc. (NASDAQ:OFIX) is a Lewisville, Texas-based provider of spine and orthopedic medical devices founded in 1980. The company has over 1,000 employees that ensure the development, manufacturing, and distribution of its products in more than 60 countries.

Orthofix Medical Inc. (NASDAQ:OFIX) reported Q4 2022 preliminary revenue of $122.2 million, which surpassed the consensus forecast of $121.88 million. The company also completed the merger of equals with Carlsbad, California-based SeaSpine Holdings Corporation (NASDAQ:SPNE) on January 4. The merged entity will be renamed at a later date. Interestingly, after announcing its merger with SeaSpine Holdings, Orthofix Medical Inc. (NASDAQ:OFIX) received a $23 per share in cash offer from two private equity (PE) funds.

9. Aesculap, Inc.

2021 Orthopedic Revenue: $1.2 billion

Aesculap, Inc. is a Center Valley, Pennsylvania-based healthcare company that provides knee and hip implants and instruments that could be installed with minimally invasive surgery.

The company is a subsidiary of Melsungen, Germany-based medical and pharmaceutical giant B. Braun. Becker’s Spine Review highlighted Aesculap, Inc. as one of the 23 spine device companies to look out for in 2022. Aesculap, Inc. has the distinction of entering the spine market through the launch of anterior cervical fusions back in 1980.

8. Globus Medical, Inc. (NYSE:GMED)

2021 Orthopedic Revenue: $1.4 billion

Globus Medical, Inc. (NYSE:GMED) is an Audubon, Pennsylvania-based medical device manufacturer focused on improving the lives of patients suffering from musculoskeletal disorders. The company provides solutions related to spinal surgery, trauma, and joint reconstruction.

In a research note issued to investors on January 4, Matt Miksic at Barclays increased the price target on Globus Medical, Inc. (NYSE:GMED)  from $70 to $82 and reiterated an Overweight rating on the stock. The analyst highlighted the tough macroeconomic conditions for the medical supplies and devices industry. However, Miksic has a positive outlook on the industry as it is experiencing an improvement in volume and ease in staff shortage.

7. NuVasive, Inc. (NASDAQ:NUVA)

2021 Orthopedic Revenue: $1.5 billion

NuVasive, Inc. (NASDAQ:NUVA) is a San Diego, California-based medical devices company. The entity is a developer of products that ensure a minimum level of invasive surgery required through the Anterior Lumbar Interbody Fusion (ALIF) and Extreme Lateral Interbody Fusion (XLIF) surgery procedures. The company claims to impact the lives of 500,000 patients annually.

NuVasive, Inc. (NASDAQ:NUVA) aspires to become the leading spine technology company globally. Experts believe that NuVasive, Inc. (NASDAQ:NUVA) stock is trading at an attractive valuation that could provide a positive risk and reward opportunity to potential investors. NuVasive, Inc. (NASDAQ:NUVA) is anticipated to gain market share in the spinal hardware industry in the future due to its innovative products.

6. Arthrex

2021 Orthopedic Revenue: $3 billion

Arthrex is a Munich, Germany-based orthopedics medical device company that is a leader in the field of arthroscopy as it develops and executes more than 1,000 products every year. The company is a privately held entity with a family business culture.

Most recently, Arthrex launched a bunionectomy system that is an alternative to the conventional bunion correction solution. The system aids surgeons in achieving bunion correction with smaller incisions and results in less pain and swelling for the patient, along with faster recovery. The company also offers the Arthrex Eclipse total shoulder system that addresses issues related to chronic shoulder pain and improves the mobility of the shoulder.

In addition to Arthrex, Medtronic plc (NYSE:MDT), Stryker Corporation (NYSE:SYK), and Smith & Nephew plc (NYSE:SNN) are also amongst some of the largest orthopedic companies in the world.

5. Medtronic plc (NYSE:MDT)

2021 Orthopedic Revenue: $3.5 billion

Medtronic plc (NYSE:MDT) is a Minneapolis, Minnesota-based medical device company with a strong presence in the spinal and orthopedic segment.

The orthopedic and spine segment of the business has observed above-market growth rates for the last several years, increasing Medtronic plc’s (NYSE:MDT) market share in the industry. Analysts believe that Medtronic plc (NYSE:MDT) could spin off the division and separate it from weaker-performing segments to unlock its true value. The company has been considered a market leader in the industry since the launch of its first spine surgical robot nearly a decade ago. Medtronic plc (NYSE:MDT) has made acquisitions on the way to fasten the technological advancement in the robotic spine surgery segment.

Artisan Partners shared its outlook on Medtronic plc (NYSE:MDT) in its Q2 2022 investor letter. Here’s what the firm said:

“While Medtronic plc (NYSE:MDT)’s procedure volumes recovered to pre-COVID levels, foreign exchange headwinds overshadowed underlying business value growth, and supply chain issues, including those related to China’s lockdowns, impacted the surgical innovations business. The downdraft in the market during the quarter led to a pile-on. We are being patient with our investment in Medtronic because the company continues to be a strong free cash flow generator and is attractively priced, with a FCF yield of 5% on trailing one-year numbers and a dividend yield of 3%. Medtronic is under new management that is focused on growing the company’s top line, reinvesting in R&D, returning cash to shareholders and growing operating profits. We like new management’s strategy and believe new product launches, increased surgery visits, sound M&A transactions and a shareholder returns focus, should reinvigorate the business. We added to our positions in these health care names during the quarter.”

4. Smith & Nephew plc (NYSE:SNN)

2021 Orthopedic Revenue: $4 billion

Smith & Nephew plc (NYSE:SNN) is a United Kingdom-based medical technology company with operations in over 100 countries and a history of 160 years. The company is a leading authority in the field of joint replacement systems for hips, knees, and shoulders.

On January 9, Veronika Dubajova at Citi initiated coverage on Smith & Nephew plc (NYSE:SNN) stock with a Buy rating and a target price of $31.03. The target price reflects a potential upside of 8.4% from the closing price on January 12. Dubajova anticipates an improvement in the company’s surgical procedure volumes that could aid Smith & Nephew plc (NYSE:SNN) in delivering above-average revenue and earnings growth in 2023. The analyst prefers companies that can withstand macroeconomic uncertainties.

Here’s what Palm Valley Capital Management said about Smith & Nephew plc (NYSE:SNN) in its Q3 2022 investor letter:

“We bought Smith & Nephew plc (NYSE:SNN) toward the end of the quarter. Smith & Nephew is a Londonbased medical device company that specializes in knee and hip replacements, sports medicine, and wound management. We purchased the ADR, which has declined meaningfully (-31% year-to-date) along with the British pound. While Smith & Nephew’s stock is priced in pounds, its revenues are in other major currencies, such as the dollar, euro, and yen. In 2021, 51% of its revenues were generated in the United States, while 31% were in other developed markets. We believe Smith & Nephew is a high-quality business that generates above average profit margins and abundant free cash flow. We were pleased the turmoil in the British pound provided us with the opportunity to purchase its shares at a discount to our calculated valuation.”

3. Zimmer Biomet Holdings, Inc. (NYSE:ZBH)

2021 Orthopedic Revenue: $7.5 billion

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a Warsaw, Indiana-based provider of musculoskeletal products and solutions with a rich history of more than 90 years. The company has operations in more than 25 countries and offers its products and services in more than 100 countries.

Shagun Singh at RBC Capital upgraded Zimmer Biomet Holdings, Inc. (NYSE:ZBH) stock from a Sector Perform to an Outperform rating and increased the target price from $125 to $141 on January 9. The analyst supports companies that offer procedures that cannot be deferred for long. Singh thinks Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is one of the organizations experiencing new product cycles and has the potential to gain a higher market share in the near future.

Citadel Investment Group increased its stake in Zimmer Biomet Holdings, Inc. (NYSE:ZBH) by over 5000% during Q3 2022.

2. DePuy Synthes Companies

2021 Orthopedic Revenue: $8.5 billion

DePuy Synthes Companies is an orthopedic and neurosurgery company that is a part of New Brunswick, New Jersey-based consumer goods, pharmaceutical, and medical devices giant Johnson & Johnson Inc (NYSE:JNJ).

The company has recently launched the INHANCE Shoulder System as an innovation in shoulder replacement technology. The portfolio of DePuy Synthes is considered one of the most diverse in the field of orthopedics as it covers a broad range of segments ranging from joint reconstruction, spinal surgery, trauma, and sports medicine. In October 2022, DePuy Synthes Companies received 510(k) approval from the US FDA for its TELIGEN system, which provides digitalization tools for visualization.

1. Stryker Corporation (NYSE:SYK)

2021 Orthopedic Revenue: $8.9 billion

Stryker Corporation (NYSE:SYK) is a Kalamazoo, Michigan-based medical technology company leading the orthopedics field. The company was founded by Dr. Homer Stryker, an orthopedic surgeon, in 1941.

In a note issued to investors on January 9, Shagun Singh at RBC Capital upgraded Stryker Corporation’s (NYSE:SYK) stock from a Sector Perform to an Outperform rating and increased the target price from $240 to $284. The management has shared the initial outlook for FY23 at various investor conferences. Stryker Corporation (NYSE:SYK) is expected to see improvement in leverage but could face headwinds during Q1 2023 due to supply chain-related challenges.

Here’s what Diamond Hill Capital said about Stryker Corporation (NYSE:SYK) in its Q3 2022 investor letter:

“Stryker Corporation (NYSE:SYK) was the only new addition to the portfolio in Q3. It is one of the largest medical device manufacturers with a track record of consistently outgrowing its end markets and competitors. Stryker has a highly performance driven culture with a decentralized operating model that results in strong incentive alignment within the company. We believe the management team has executed well, making small but meaningful decisions that have positioned the firm well among competitors. Management operates with a market share gain mentality and strives to be a category leader in the market they are in. Stryker also benefits from its broad portfolio of surgical tools, small and large cap hospital equipment, waste management products, etc., which enables it to address all the needs of a hospital operating room and be a one-stop shop for health care facilities. This is particularly appealing to hospitals, and it positions Stryker to be the supplier of all operating room equipment versus a single product, thus enabling the company to gain market share.”

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Disclosure: None. 15 Largest Orthopedic Companies in the World is originally published on Insider Monkey.