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Ottobock SE & Co. KGaA, formerly Otto Bock, is an international company based in Duderstadt Germany, that operates in the field of orthopedic technology. It is considered the world market leader in the field of prosthetics and one of the leading suppliers in orthotics, wheelchairs and exoskeletons.[2]
Näder Holding GmbH & Co. KG is entirely owned by the Näder family, direct descendants of the company's founder, Otto Bock. Näder Holding controls 80% of the shares in Ottobock SE & Co. KGaA. The remaining 20% of the shares were previously held by the Swedish financial investor EQT. However, in March , it was announced that Näder Holding had repurchased these shares from EQT for EUR 1.1 billion.[3]
In , the Ottobock Group as a whole generated sales of '1,3 billion.[4] As of they had 8,367 employees worldwide.[5]
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The company was founded on January 13, [6] under the appellation Orthopädische Industrie GmbH, headquartered in Berlin. Initiated by a group surrounding a manufacturer named Otto Bock, who hailed from Krefeld,[7] its objective was to supply prostheses and orthopedic products to the many thousands of war invalids of World War I.[8] Bock acted as production manager during this phase. He moved into the management of the company in and finally took over as sole managing director in .[7] At the end of October , Bock, who had joined the NSDAP in May, had the old company liquidated and paid out the remaining shareholders. The company was renamed Orthopedic Industry Otto Bock in Königsee.[8]
In , production operations were relocated to Königsee in Thuringia, where at times, a workforce of up to 600 people was employed. Faced with high demand that could not be met with traditional handicraft or artisanal methods, Otto Bock began the mass-production of prosthetic components, thus laying the foundation for the orthopedic industry. With this evolution of the industry, new materials began to be used in production, notably aluminum, which found early application in prosthetic construction during the s.
Max Näder, after completing his secondary education in , commenced his professional journey by undertaking training as an orthopedic mechanic and industrial clerk at Ottobock. In , during a period of wartime reprieve, he entered into matrimony with Marie Bock, the younger sister of the company's founder. It is noteworthy that during the tumult of World War II, Ottobock resorted to the utilisation of forced laborers to sustain its operational endeavors.[9]
After World War II, when all the family's private assets as well as the factory in Königsee had been confiscated by the Soviet occupiers, the company settled in Duderstadt in southern Lower Saxony in . In , plastics were introduced into production for the first time. The invention of a braking knee joint with high stability, called the Jüpa knee, brought the economic breakthrough after .[10] Together with a newly developed balance device and two other apparatuses for prosthetic alignment, it was also in demand on the American market. In , Ottobock exported the first 500 Jüpa knees to the U.S.[11][12] The establishment of an American branch in Minneapolis in marked the beginning of the company's international sales structure.
In , Max Näder introduced myoelectric arm prostheses to the market. For the first time, light and fragile as well as heavy objects could be grasped with them. In myoelectrics, weak electrical voltages control the prosthesis.[13][14] Another development was a fitting solution for modular leg prostheses. The pyramid adapter, patented in , connects the prosthetic foot, knee joint and stem and allows static corrections as well as the exchange of the modules. It remains an integrative element of innovative joints to this day.[15]
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Science Center Medizintechnik in BerlinAfter reunification, Hans Georg Näder took over the management of the family company from his father Max Näder, the son-in-law of company founder Otto Bock, in . In the same year, the company was able to reacquire the old Ottobock site in Königsee. Today, manual wheelchairs, power wheelchairs, rehabilitation products for children and seat shell bases are produced at the former headquarters.
After a five-year development period, the world's first microprocessor-controlled knee joint, the C-Leg, was presented at the World Prosthetics Congress in Nuremberg in .[16] The company's 90th anniversary was also marked by the launch of the C-Leg.
To mark the company's 90th anniversary, the newly built Science Center Medical Technology was inaugurated in Berlin in June . Until , this building near Potsdamer Platz served both as a venue for the public exhibition Begreifen, was uns bewegt, and as a venue for congresses and seminars.[17] On January 1, , the subsidiary Otto Bock Mobility Solutions GmbH based in Königsee emerged from the HealthCare division. At the end of , the old logo with the original signature of Otto Bock was replaced by a new international logo.[18]
Advancements in electronic knee joint components and mechatronic prosthetic feet, led to enhanced individual fitting and personalised care for recipients. In , these technological improvements enabled prosthetic users to walk backwards safely, overcome obstacles, or climb stairs in alternating steps for the first time.[19]
In , Ottobock was banned from operating in parts of Bosnia following an investigation by the Centre for Investigative Reporting that revealed the company was implicated in a scandal involving the misuse of public health funds in which prosthetic limb users were forced to buy Ottoboc's products.[20][21]
In February , Ottobock purchased the myoelectric arm or hand prostheses developed under the product name BeBionic from the British medical technology company Steeper. Since May , the prostheses have been part of Ottobock's product range.[22][23] In April , Ottobock acquired Boston-based BionX Medical Technologies that manufactured a prosthetic foot and ankle product that utilises robotics technology.[24] In June , Swedish venture capitalist, EQT, acquired a 20 percent stake in Ottobock.[25]
In , Ottobock expanded its presence in the orthopaedic technology market, acquiring a 51 percent stake in Pohlig GmbH, a medium-sized orthopedic company based in Traunstein, Bavaria, and one of the most important orthopedic technology companies in Germany.[26] In the same year, Pohlig GmbH became a wholly owned subsidiary of Ottobock.
During the period from to , Hans Georg Näder withdrew substantial sums from Ottobock, exceeding the company's generated profits. This financial practice led to a significant decline in Ottobock's equity ratio, which dropeed from 50% in to 16% by .[27]
In late , Ottobock's subsidiary, Sycor, planned a merger with the IT service provider Allgeier Enterprise Services. However, Ottobock cancelled the merger at the beginning of . Following a series of acquisitions, Ottobock reported in that for the first time in its history the company's sales exceeded '1 billion.[28][29]
In November , Ottobock was compelled to sell the U.S.-based prothesis manufacturer Freedom Innovations LLC and divest all assets acquired via its purchase of the industry competitor in . This sale was mandated after the U.S. Federal Trade Commission (FTC) filed an anti-competitive complain against Ottobock for breaking competition laws, incurring a damage of '78.1 million to Ottobock.[30][31] The shares of Freedom Innovations were subsequently acquired by the French prosthesis manufacturer Proteor.
In December , the European Investment Bank (EIB) announced that it will provide up to '100 million to Ottobock to support the company's development of new products.[32]
In , Ottobock's new generation of orthoses incorporates sensor technology to regulte the stance and swing phases of the leg throughout the gait cycle, enabling an almost natural walking pattern[33] Additionally, the company introduced an exoskeleton, the first product of the new Ottobock Bionic Exoskeletons business unit, designed to reduce strain during overhead work.[34][35]
Ottobock expanded its exoskeletons business after acquiring US-based exoskeleton startup SuitX, a spinoff from Berkeley Robotics and Human Engineering Laboratory, in November .[36]
At the end of , Ottobock announced plans for an initial public offering (IPO) slated for . However, this IPO was repeatedly postponed throughout the following year, accompanied by significant changes in the company's executive leadership. By the end of , Handelsblatt reported that the IPO had been abandoned due to unfavourable market conditions and that the financial investor EQT was considering a direct sale of its shares.
In May , an Ottobock subsidiary based in Russia was fined by Russian anti-monopoly authorities for suspected cartel collusion which gave Ottobock and its co-conspirators a monopoly over state tenders for prosthetics, worth 168.1 million Russian Roubles.[37][38]
In June , it was announced that EQT, with the assistance of JP Morgan, had initiated the sale of its 20% stake in Ottobock. Additionally, a 10% stake held by Hans Georg Näder was included as part of the planned transaction. In December , Näder Holding declared its intention to repurchase all of its shares. This buyback was completed in March ,[39][40] with Näder securing '1.1 billion in credit funds for the transaction.[41] Prior to the buyback, Hans Georg Näder sold his company Sycor, which had acquired Näder Ventures GmbH from Ottobock at the beginning of .[42]
In March , Ottobock expanded its operations by acquiring the rillinger chain of medical supply stores.[43] That same month, Cranial Technologies filed a patent infringement lawsuit against Ottobock and Active Life, alleging that the companies used a patented process for 3D printing certain components of infant cranial helmets without authorisation.[44]
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The largest shareholder of Ottobock SE & Co. KGaA is Näder Holding GmbH & Co. KG, which is headquartered in Duderstadt. It is 100 percent owned by the owner family Näder, the direct descendants of the company founder Otto Bock. A further 20 percent is held by the Swedish financial investor EQT.[45]
Hans Georg Näder has publicly stated that he intends to float Ottobock via an initial public offering (IPO) scheduled for , despite previously announcing the intention to take Ottobock public in .[46][47] In February , the company delayed the IPO to September .[48] According to Reuters, Ottobock announced in May that it would not pursue the IPO due to market conditions, while company insiders claimed the company is unlikely to reach the target valuation of five to six billion euros.[49]
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The Board of Directors manages the business of Ottobock SE & Co. KGaA and determines the basic guidelines and strategic direction of the company. It consists of four non-executive directors and currently two of the four executive directors (CEO/CSO and CFO). The Chairman of the Board of Directors is Hans Georg Näder.[50]
The company's Supervisory Board is European co-determined and consists of six shareholder representatives and four employee representatives. It monitors the activities of the board of directors. The supervisory board is chaired by Bernd Bohr, long-time head of the automotive division of the Bosch Group.[51] Other members include Gesche Joost and Michael Kaschke.[52][53]
The company employs four executive directors: Oliver Jakobi, chief executive officer (CEO) and chief revenue officer (CRO),[54] Arne Kreitz, chief financial officer (CFO),[55] Arne Jörn chief operating officer (COO) and chief technology officer (CTO) and Martin Böhm chief experience officer.[56][57] Philipp Schulte-Noelle is a former senior executive of German healthcare public company Fresenius, who was appointed as the CEO of Ottobock in amid the plan to take Ottobock public.[58] Kathrin Dahnke was hired by Ottobock in July after she left her position as CFO at German electric lights manufacturer Osram.[59]
In May , Kathrin Dahnke, Philipp Schulte-Noelle and Andreas Goppelt were ousted from the company following the intervention by Hans Georg Näder, who opposed with the plan to take the company public in .[60] Kathrin Dahnke told reporters just days before her departure that Ottobock still intends to go public.[61]
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As of the end of , Ottobock employed more than 8,000 people worldwide. In addition to the corporate headquarters in Duderstadt, Ottobock has other Germany-based locations in Königsee, Hanover, Traunstein and Berlin. A competence center and research and development workshop are located in Göttingen.[62]
As of February , the company operates a total of almost 60 sites in North and South America, Europe, Asia, Africa and Australia. Ottobock SE & Co. KGaA is the global market leader in technical orthopedics/prosthetics, with sales and service locations in more than 60 countries.[63]
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An Ottobock technician repairs a wheelchair at the Paralympic Games in Rio de JaneiroOttobock is an official international partner to the International Paralympic Committee (IPC) since , and has been providing technical services at the Paralympic Games since .[64]
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The Paralympic Games in Rio de Janeiro was the 13th games at which it provided technical services.[65] This involved shipping 18 tonnes (18 long tons; 20 short tons) of equipment, including 15,000 spare parts, 1,100 wheelchair tyres, 70 running blades and 300 prosthetic feet, 300 kilometres (190 mi) from Duderstadt to the port at Bremerhaven, 10,100 kilometres (6,300 mi) by sea to Santos, and then 500 kilometres (310 mi) by road to Rio de Janeiro.[66] At Seoul in , four Ottobock technicians carried out 350 repairs;[64] in Rio de Janeiro in , 100 technicians from 29 countries speaking 26 languages carried out 3,361 repairs for 1,162 athletes, including 2,745 repairs to wheelchairs, 438 to prosthetics, and 178 to orthotics.[66]
In Rio on 10 September, the IPC's president, Sir Philip Craven, announced that Ottobock had agreed to extend its world-wide partnership to the end of , encompassing the Paralympic Games in Tokyo.[67]
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In this article, we will take a look at the 15 largest orthopedic companies in the world. If you want to see more companies in this selection, go to the 5 Largest Orthopedic Companies in the World.
The orthopedic industry has staged a comeback in the last two years following a dismal due to the lockdowns and restrictions during the COVID-19 pandemic. During , the orthopedic industry saw its annual top line increase by 12.8% year-over-year (YoY) or $6.1 billion to $53.6 billion. The orthopedic industry has also faced supply-chain-related challenges. However, experts still anticipate YoY growth of 3.2% in to take the orthopedic industry sales to $55.3 billion. The growth rate for is in-line with the historical growth before the COVID-19 pandemic.
It must be noted that the top 25 largest orthopedic companies in the world account for 80% of the industry's top line. Amongst the top 25 companies, there is a significant variance as Stryker Corporation (NYSE:SYK) leads the industry with annual revenue of $8.9 billion. Meanwhile, SeaSpine occupies the position of the 25th largest orthopedic company in the world, with an annual top line of $191 million. The global orthopedic industry comprises more than 1,000 companies. The industry can be broken down into five key segments, namely joint replacement, ortho biologics, spine, sports medicine, and trauma. Amongst these segments, joint replacement is the biggest, with total revenue of $19.42 billion in . The top 25 companies have an 87.8% market share in this segment. Meanwhile, the smallest segment in the orthopedic industry is the ortho biologics segment, with a total top line of $5.22 billion as of . The top 25 companies have a 59.8% market share in this segment.
The recovery of the orthopedic industry hinges on important market forces. The first market force is related to hospital staffing issues. The COVID-19 pandemic created a shortage of healthcare resources, dampening the road to recovery for the orthopedic industry. Another key market force is the global supply chain challenges, while the third market force is the slow decline in the procedure backlog. Experts anticipate the procedure backlog to ease in late and early as the challenges related to hospital staffing and supply chain ease. Some of the largest orthopedic companies in the world include Medtronic plc (NYSE:MDT), Stryker Corporation (NYSE:SYK), and Smith & Nephew plc (NYSE:SNN).
15 Largest Orthopedic Companies in the World
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Our Methodology
In this article, we will discuss the 15 largest orthopedic companies in the world based on their orthopedic revenue in . We have considered both public and private companies in this list. The companies have been ranked in ascending order of their annual revenue.
Orthopedic Revenue: $500 million
Bioventus Inc. (NASDAQ:BVS) is a Durham, North Carolina-based medical device company that develops and commercializes clinical treatments related to non-surgical joint pain injection therapies along with peripheral nerve stimulation products.
In the field of surgical solutions, the company provides bone graft substitutes to join and grow bones that enhance the outcomes of spinal and other orthopedic surgeries. Bioventus Inc. (NASDAQ:BVS) is protected from competitors by the diversity of its portfolio, which also enables the company to evolve around its core products. Analysts think high earnings and free cash flow (FCF) growth potential have not yet been factored into the stock price.
As of Q3 , Juniper Investment Company is the biggest hedge fund holder of Bioventus Inc. (NASDAQ:BVS) stock, with a stake of over $9.12 million. This is equivalent to 5.4% of the current market capitalization of the company. On a quarter-over-quarter (QoQ) basis, the hedge fund increased its stake in Bioventus Inc. (NASDAQ:BVS) by 23%, and it takes up nearly 20% of Juniper Investment's portfolio.
Orthopedic Revenue: $550 million
CONMED Corporation (NYSE:CNMD) is a Utica, New York-based medical technology corporation involved in developing and commercializing surgical solutions and tools.
Experts believe that the growth drivers for CONMED Corporation (NYSE:CNMD) are strong as its growth rates, along with the earnings power, are amongst the highest in mid-cap medical technology companies. During the most recent earnings call, the management showed its intention to expand its products and services for the orthopedic industry. CONMED Corporation (NYSE:CNMD) is a key player in the field of sports medicine and has a strategic partnership with Musculoskeletal Transplant Foundation (MTF).
Millennium Management raised its stake in CONMED Corporation (NYSE:CNMD) by 273% during the third quarter of .
Orthopedic Revenue: $600 million
Medacta is a Castel San Pietro, Switzerland-based manufacturer of medical equipment that is involved in the designing, production, and distribution of orthopedic products related to joint replacements, spine surgery, and sports medicine. The company has a presence in over 40 countries.
The company's NextAR Spine application won the Spine Technology Award from "Orthopedics This Week." The augmented reality surgical platform of Medacta is the company's second product that won the prize. The complete system has 3D imaging capabilities and smart glasses to improve the field of vision of the surgeon. The first surgery with the platform was performed in May in Lebanon, New Hampshire, following approval from the US Food and Drug Administration (FDA).
Orthopedic Revenue: $700 million
Acumed is a privately-held Hillsboro, Oregon-based orthopedic medical device manufacturer founded in . Colson Medical LLC is the parent organization of Acumed which itself is a wholly owned subsidiary of Marmon Holdings, a Berkshire Hathaway Inc (NYSE:BRK-B) company.
Acumed claims that it manufactures 90% of the implants in the US. The popularity of Acumed's products can be gauged by the fact that the company claimed that its Acu-Loc Wrist plating product was used for the one-millionth time by a surgeon in Jacksonville Beach, Florida, in September . Acumed is expanding its offerings by acquiring ExsoMed, which is considered an expert in the field of hand-related surgeries.
Orthopedic Revenue: $800 million
Enovis Corporation (NYSE:ENOV) is a Wilmington, Delaware-based medical technology company founded in with a keen focus on orthopedics.
In a research note issued on January 3, Vijay Kumar at Evercore ISI increased the price target on Enovis Corporation (NYSE:ENOV) from $58 to $68 and reiterated an Outperform rating on the stock. Furthermore, the analyst added Enovis Corporation (NYSE:ENOV) stock to the 'TAP Outperform' list before its Q4 results. According to consensus estimates, Enovis Corporation (NYSE:ENOV) is expected to report revenue and adjusted EPS of $415.79 million and 65 cents, respectively. Despite the tough macroeconomic environment, the company is experiencing expansion in margins due to strong operational plans and an innovative management approach.
Here's what Diamond Hill Capital said about Enovis Corporation (NYSE:ENOV) in its Q3 investor letter:
'Enovis Corporation (NYSE:ENOV)'s stock underperformed this quarter after the company reported disappointing Q2 results and lowered its full year guidance. Inflation and lingering COVIDrelated headwinds caused revenue and gross margins to come in lower than expected. While recent results are mildly disappointing, we believe the macro headwinds Enovis is facing are starting to abate. Additionally, the company can use its business system to create substantial value over time via M&A and continuous improvement.'
Orthopedic Revenue: $800 million
Orthofix Medical Inc. (NASDAQ:OFIX) is a Lewisville, Texas-based provider of spine and orthopedic medical devices founded in . The company has over 1,000 employees that ensure the development, manufacturing, and distribution of its products in more than 60 countries.
Orthofix Medical Inc. (NASDAQ:OFIX) reported Q4 preliminary revenue of $122.2 million, which surpassed the consensus forecast of $121.88 million. The company also completed the merger of equals with Carlsbad, California-based SeaSpine Holdings Corporation (NASDAQ:SPNE) on January 4. The merged entity will be renamed at a later date. Interestingly, after announcing its merger with SeaSpine Holdings, Orthofix Medical Inc. (NASDAQ:OFIX) received a $23 per share in cash offer from two private equity (PE) funds.
Orthopedic Revenue: $1.2 billion
Aesculap, Inc. is a Center Valley, Pennsylvania-based healthcare company that provides knee and hip implants and instruments that could be installed with minimally invasive surgery.
The company is a subsidiary of Melsungen, Germany-based medical and pharmaceutical giant B. Braun. Becker's Spine Review highlighted Aesculap, Inc. as one of the 23 spine device companies to look out for in . Aesculap, Inc. has the distinction of entering the spine market through the launch of anterior cervical fusions back in .
Orthopedic Revenue: $1.4 billion
Globus Medical, Inc. (NYSE:GMED) is an Audubon, Pennsylvania-based medical device manufacturer focused on improving the lives of patients suffering from musculoskeletal disorders. The company provides solutions related to spinal surgery, trauma, and joint reconstruction.
In a research note issued to investors on January 4, Matt Miksic at Barclays increased the price target on Globus Medical, Inc. (NYSE:GMED) from $70 to $82 and reiterated an Overweight rating on the stock. The analyst highlighted the tough macroeconomic conditions for the medical supplies and devices industry. However, Miksic has a positive outlook on the industry as it is experiencing an improvement in volume and ease in staff shortage.
Orthopedic Revenue: $1.5 billion
NuVasive, Inc. (NASDAQ:NUVA) is a San Diego, California-based medical devices company. The entity is a developer of products that ensure a minimum level of invasive surgery required through the Anterior Lumbar Interbody Fusion (ALIF) and Extreme Lateral Interbody Fusion (XLIF) surgery procedures. The company claims to impact the lives of 500,000 patients annually.
NuVasive, Inc. (NASDAQ:NUVA) aspires to become the leading spine technology company globally. Experts believe that NuVasive, Inc. (NASDAQ:NUVA) stock is trading at an attractive valuation that could provide a positive risk and reward opportunity to potential investors. NuVasive, Inc. (NASDAQ:NUVA) is anticipated to gain market share in the spinal hardware industry in the future due to its innovative products.
Orthopedic Revenue: $3 billion
Arthrex is a Munich, Germany-based orthopedics medical device company that is a leader in the field of arthroscopy as it develops and executes more than 1,000 products every year. The company is a privately held entity with a family business culture.
Most recently, Arthrex launched a bunionectomy system that is an alternative to the conventional bunion correction solution. The system aids surgeons in achieving bunion correction with smaller incisions and results in less pain and swelling for the patient, along with faster recovery. The company also offers the Arthrex Eclipse total shoulder system that addresses issues related to chronic shoulder pain and improves the mobility of the shoulder.
In addition to Arthrex, Medtronic plc (NYSE:MDT), Stryker Corporation (NYSE:SYK), and Smith & Nephew plc (NYSE:SNN) are also amongst some of the largest orthopedic companies in the world.
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Disclosure: None. 15 Largest Orthopedic Companies in the World is originally published on Insider Monkey.
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