Commentary on the recent M&A movements in Orthopedics

Tides Turn for These Orthopedic Firms (MorningStar)
With the announcement that  Zimmer (ZMH) plans to acquire Biomet, the competitive dynamics in the orthopedic implant market have shifted. In general, we expect the reduction in competition should help the large, top-tier firms, including  Johnson & Johnson (JNJ), Zimmer, and  Stryker (SYK). However, this dynamic will make it even more challenging for smaller midtier companies, such as Smith & Nephew (SNN) and MicroPort, to hang onto their hospital customers. We see this shift as the industry's countermove to health-care provider conso...