Orthopedic Consolidation - Gabelli research analyst Jennie Tsai (4-3-2018)

Orthopedic Consolidation - Gabelli research analyst Jennie Tsai (4-3-2018)

http://www.Gabelli.com

Invest with Us 1-800-GABELLI (800-422-3554)
http://facebook.com/gabellitv
GabelliTV

Transcript:
• We recently published our “Orthopedic Consolidation” report as we believe the $47 billion global orthopedic market will continue to consolidate.
• In this report, we outline the 2017 global orthopedic market with specific market segments – the knee/hip market, the spine market, the trauma market, the sports medicine market, and the extremities market and the companies participating in each market.
• We project the orthopedic market to grow at 2-3% annually over the next few years as mid-single-digit growth in procedures is offset by low-single digit price declines.
• Given that consolidation has occurred annually, with Zimmer Biomet acquiring LDR in 2016 and TPG Capital acquiring Exactech in early 2018, we expect this consolidation trend to continue.
• In this report, we highlight nine publicly traded orthopedic companies which we believe are potential acquisition candidates…
• In alphabetical order: they are …..Conmed, Globus Medical, K2M Group, NuVasive, Orthofix, Orthopediatrics, Seaspine, Smith & Nephew and Wright Medical.
• We currently have BUY recommendations on four of these companies - Globus Medical, K2M Group, NuVasive, and Orthofix
• Nonetheless, we believe any of these nine companies are potential takeout candidates as companies realize that scale and breadth of product portfolio …. matters and …. strategic M&A can lead to revenue and expense synergies.



Source: Gabelli TV (via YouTube)
Comment Form is loading comments...