Sulzer's New Brew
Executive Summary
Orthopedic suppliers have tentatively explored the opportunity in biologics for years. Now, one leading suppliers, SulzerMedica, is launching a dedicated business designed to focus on the opportunity. For Sulzer, biologics represent a promising new technology that could revitalize an orthopedic business beset by pricing and commmoditization pressures. But biologics also will require Sulzer to manage its business differently than medical device companies historically have.
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In Orthopedics, One Steps Up While One Steps Out
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.