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...The advisory board on the beta stage are law firm Orrick, Google, medical device company Zimmer Biomet, insurance group Marsh McLennan and media business Hearst....
...Of the large-cap health stocks, Vermeer Partners, another London-based wealth manager, favours medical device stocks Zimmer Biomet and Smith & Nephew, given that demand for elective surgery has been deferred...
...Lack of scale is not necessarily a disadvantage, Medacta’s 32 per cent operating margins are in line with large peers such as Zimmer Biomet and DePuy Synthes....
...But the opportunity appears to have seemed less interesting once discussions to narrow the gap between what he made versus his peers at US rivals Zimmer Biomet and Stryker didn’t go his way....
...Besides Stryker, other leaders in the industry include Johnson & Johnson, which acquired orthopaedic device maker Synthes for $21.3bn in 2012, and Zimmer Biomet, which was formed by a $14bn takeover in 2014...
...That helped inspire the $14bn acquisition by Zimmer of Biomet in 2015. Following consolidation in the sector, attracting an acquirer might be harder....
...It is one of the smallest manufacturers in the $14.5bn hip and knee replacement business, which is dominated by Zimmer Biomet, Johnson & Johnson and Stryker....
...Forecast sales for Zimmer Biomet in 2018 are only 2 per cent higher than the combined 2014 sales of the two separate companies....
...Biomet would be likely to trigger antitrust investigations) but also from a strategic viewpoint....
...Smith & Nephew faded 3 per cent to £13.78 after Zimmer Biomet reported worsening hip and knee implant sales and cut its full-year organic revenue growth target to between flat and 0.5 per cent....
...Zimmer Biomet, which makes artificial joints and dental devices, saw its shares tumble to their lowest point since April after it lowered its 2016 outlook due to supply chain problems that dragged on its...
...The dimmed outlook sent Zimmer Biomet shares down to $105.99 by midday Monday, their lowest point since early April....
...According to CNN, a Zimmer Biomet political action committee donated to Mr Price’s re-election campaign....
...S&N’s knee sales have been stronger than historic averages over the past year, which some investors think could be stemming from disruption at Zimmer following its merger with Biomet....
...Smith & Nephew lost 2.2 per cent to £11.83 after US peer Zimmer Biomet cut its 2016 outlook, blaming supply chain problems....
...The orthopaedics market has been convulsed by the $13bn merger of Zimmer and Biomet, completed last year, and restructuring at J&J, which last month announced 3,000 job cuts in its medical devices unit....
...Zimmer and Biomet will cut costs by merging, he admits, but adds: “Will they grow their top line? I bet it doesn’t work.”...
...S&N added 1.8 per cent to £11.65 on talk of interest from Johnson & Johnson, whose DePuy orthopaedic subsidiary was pushed to number three in the market for knee implants by Zimmer’s purchase of Biomet....
...Smith & Nephew edged 0.4 per cent higher to £11.15 after US regulators set out terms for the purchase of Biomet by US peer Zimmer....
...The next moves may be on pause ahead of the US Federal Trade Commission’s ruling on Zimmer’s purchase of Biomet, expected this month, dealers said....
...Zimmer’s purchase of Biomet shows hospital purchasing decisions are increasingly focused on value rather than product features, which favours companies offering economies of scale, said Goldman....
...A report that the merger of Zimmer and Biomet is nearing EU approval helped revive talk of further sector consolidation, such as a Johnson & Johnson bid for S&N....
...Medtronic of the US last month completed its near-$50bn takeover of Ireland-based Covidien and Zimmer last year bought Biomet for $13.4bn....
...The strategic logic for a bid remains strong and the catalyst may come with formal closing of Zimmer’s offer for Biomet, expected at the end of the first quarter, it said....
...Zimmer stockholders will hold roughly 84 percent of the combined company, with Biomet shareholders owning the remainder....
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