Thoughts and Observations from the 2021 Top Companies Reports

The annual Top Companies Report issue is always a fantastic way to catch up with what was happening at the leading firms in the industry in their most recent fiscal. During a typical year writing the reports, my fellow editors and I are reminded of many of the big stories regarding M&A activity, leadership changes, substantial product announcements, and other news involving these major firms. The last fiscal year for these companies, however, was anything but typical.

For the first time since I’ve been a part of producing this report (heck, perhaps for the first time since anyone has been involved with the ODT Top Companies report), one single item dominated the news during the reported year. The words “pandemic,” “COVID,” and/or “virus” were included in every single company report, bar none.

With the pandemic affecting every single industry worldwide, it’s no wonder a report of the top 10 orthopedic device firms would feature the topic so prominently. And with that came challenges.

In my contributions to the report (if it wasn’t apparent by the three distinct writing styles, we each take three companies and author those reports; well, Sam always seems to get that fourth), it was difficult to find something other than the pandemic to write about regarding the financials for a company’s latest fiscal or most relevant news for the year. That said, most orthopedic device companies within the top 10 were adversely impacted by the pause put on elective surgeries more so than other medical device firms. Some also saw decreases due to patients being unable to see their doctors to gain access to specific treatments that weren’t possible (or yet created) through telehealth solutions.

Regardless of the reason for a company’s losses, something from Smith+Nephew’s report caught my eye—the phrase “no excuses.” As the father of a daughter whose senior year of high school will forever be remembered for her classes at home via a computer instead of the cherished moments so many enjoy during a more typical final year of grade school, I grew quite tired of hearing what couldn’t be done because of the pandemic. That was essentially the message shared by Robert Rahal, Veterans Patient Experience Officer at the VA Central California Healthcare System in that report. “Understandably, there are reasons for not being able to do certain things…As organizations, let’s stop making excuses. Stop blaming COVID,” he was quoted as saying.

Fortunately, “can’t” didn’t seem to be in the vocabulary of many of the employees at the leading orthopedic device industry firms. Instead, these companies weathered the storm as best they could. Sure, the losses seen for the fiscal period from April through June were substantial, but then, as the darkest points of the pandemic began to lighten, elective surgeries began to return, production and manufacturing of necessary instrumentation and implants ramped up, and patients began gaining access to the healthcare they needed. The industry didn’t say “can’t”; rather, it found a way to do what it could when possible and when it was needed, regardless of bottom lines and financial reports.

We’ve already seen a reversal of fortunes in the orthopedic industry. Elective surgeries have gotten much closer to full volume, and that will likely be the situation for some time to come. Operating rooms that were already booked to capacity will likely see above 100 percent usage in the coming months—possibly years. Those regions where surgeries were not booked solid will likely see full capacity. This result will mean rapid recovery for the industry from those aforementioned sagging months during the pandemic when revenue was down. The reports I’ve already seen for this previous second quarter are showing huge year-over-year gains. Next year’s top company reports will likely paint a much rosier picture of the orthopedic organizations’ financials.

In the meantime, thank you for taking the time to review the top company reports contained within. As always, feel free to reach out to me with your thoughts and comments on any of the top firms you read about this year. If you’re so inclined, share your own experiences during the pandemic and tell me how your firm was impacted, how you aided in the effort to combat the virus, or how you foresee the recovery in the orthopedic space. Further, think about what changes we may see in this space given the need to adjust during the pandemic. Will telehealth gain a greater foothold in orthopedics given its explosive growth during the pandemic? What else could “stick” as a result of changes that occurred during the pandemic?

I look forward to your feedback! 

Sean Fenske, Editor-in-Chief
[email protected]