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In Orthopedics, One Steps Up While One Steps Out

Executive Summary

The two otherwise independent announcements this month by Sulzer Ltd. and Bristol-Myers Squibb Co. seemed almost to speak to each other. Sulzer announced that it would exit several businesses, including its textile, pumps, and some other industrial lines, to focus on health care and materials sciences. In the process, Sulzer will take back a medical device business it spun off three years ago and almost certainly will be expanding its base in orthopedics through both internal growth and acquisition. And BMS' announcement that it, too, would be divesting some businesses to concentrate on its core pharmaceutical business seemed appropriately timed, since one of the biggest pieces to be sold off is its Zimmer Inc. orthopedics line.

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