Ambulatory surgery centers, robotics seen as trends for orthopedic devices in 2023 (JNJ)

After seeing a downturn over the previous few years on account of COVID-19, the orthopedics gadgets market is ready to return to pre-pandemic ranges this yr.

The market is anticipated to succeed in ~$50B in 2023, in accordance with analytics agency GlobalData.

COVID-19 in addition to well being insurer reimbursement insurance policies are transferring extra orthopedics surgical procedures out of hospitals and into outpatient settings, corresponding to ambulatory surgical facilities (ASCs).

This might profit firms corresponding to HCA Healthcare (NYSE:HCA), Neighborhood Well being Techniques (CYH), Common Well being Companies (UHS), and Tenet Healthcare (THC) which all function ambulatory care services.

Tina Deng, principal medical gadgets analyst at GlobalData, mentioned that extra orthopedics surgical procedures — specifically complete joint replacements — are taking place in outpatient or ASCs to maintain extra hospital beds open. She added that the Facilities for Medicare & Medicaid Companies is requiring that fewer procedures be performed on an inpatient foundation.

As a result of ASCs are smaller services in comparison with hospitals with smaller working areas, orthopedic gadgets are being developed with this in thoughts, in addition to remote-control capabilities.

Deng famous that Stryker (NYSE:SYK) is a frontrunner on this space because it launched an ASC-specific enterprise again in 2020.

DePuy Synthes, the orthopedics division of Johnson & Johnson (NYSE:JNJ), is one other firm to keep watch over given their lengthy experience within the space and their expertise working with ASCs.

The GlobalData report additionally highlighted robot-assisted surgical procedures as rising this yr. They’re utilized in surgical procedures together with partial knee alternative, complete knee alternative, and complete hip alternative, offering extra constant and correct outcomes.

Deng mentioned that whereas the final surgical procedure robotics market is essentially dominated by Intuitive Surgical (ISRG), producer of the da Vinci surgical system, main orthopedics makers are vying for a slice of the robotics market.

Firms on this area embody Zimmer Biomet Holdings (ZBH), Medtronic (NYSE:MDT), and Smith & Nephew (SNN).

In its Q3 2022 earnings name in November 2022, Zimmer Biomet (ZBH) mentioned that 30% of its robotics are going into ASCs. The corporate added that ~60% of reconstructive procedures could possibly be performed in ASCs by 2028.

GlobalData tasks that the orthopedic robotic surgical techniques market will probably be $984M worldwide in 2023 with annual development of 25.6%.

Synthetic intelligence and machine studying are additionally anticipated to enhance outcomes offered by orthopedic robots. In July 2022, Zimmer Biomet (ZBH) introduced a partnership with New York’s Hospital for Particular Surgical procedure to develop a middle for innovation in AI in robotic joint alternative.