Synthes Medical Device Company Intelligence Report

Date: April 30, 2012
Pages: 40
US$ 515.00
Publisher: Espicom Business Intelligence
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: S957A998BC9EN

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Synthes Medical Device Company Intelligence Report
Through its five product groups – Trauma, Spine, Craniomaxillofacial (CMF), Biomaterials and Power Tools – Synthes Inc develops and manufactures instruments, implants and biomaterials for the surgical fixation, correction and regeneration of the human skeleton and its soft tissues, including both metallic and osteobiological materials. The group also has a Veterinary business.
  • Synthes Trauma - produces plate and screw systems, intramedullary nailing systems and external fixation devices that are used for the surgical treatment of fractures, deformities and tumour diseases of long bones. The company also produces trauma implants for the shoulder, hand, pelvis, hip, condyles and foot.
  • Synthes Spine - covers products for the treatment of degenerative instabilities, fractures, tumours and deformities. The company offers a full range of solutions for the cervical, thoracic and lumbar spine.
  • CMF - offers a range of facial trauma, tumour resection and reconstructive implants and instruments.
  • Synthes Biomaterials - includes a paste that can be used to fill bony defects; an implant for young children that reabsorbs after the body’s bones have healed; and demineralised human bone that promotes bone healing. In May 2011, Synthes sold the Norian assets of its Biomaterials division to Kensey Nash.
  • Synthes Power Tools - offers a range of air- and battery-driven drill systems, reamers and saws for use in orthopaedics and trauma surgery. In November 2010, this business was expanded with the acquisition of Anspach, which provided a complementary high-speed product line to the Synthes power tools portfolio.
  • Synthes is the world leader in traumatology, ranks among the top companies for spinal devices and is in the leading position in the CMF business.
In 2011, Synthes generated revenues of nearly US$4 billion and net earnings of US$966 million. The company employs more than 12,000 people, mainly in the US, Switzerland, Germany, Austria and China. Synthes Inc is registered in Delaware, US. Its holding company, Synthes GmbH, is based in Switzerland.

In April 2011, Synthes entered into a definitive agreement to be acquired by Johnson & Johnson for US$21.3 billion. At the time of the announcement, Synthes’ Board of Directors approved the transaction and Dr Wyss and related parties agreed to vote shares representing not less than 33% of Synthes common stock in support of the transaction.

The acquisition was subject to clearance and an investigation by the European Commission (EC) due to concerns that the merged company would trample all competition in the European orthopaedics market. The EC was notified of the transaction in September 2011 and in November 2011 the EC launched an in-depth investigation. Both Synthes and Johnson & Johnson were advised in a January 2012 Statement of Objections that the merger raised serious concerns and, in absence of sufficient remedy, might be prohibited. The investigation found that the combined entity would have a very high combined market share for trauma devices in several EU countries, due in large to an exclusive relationship between Synthes and the surgeon-led AO Foundation.

In April 2012, the EC ruled, however, that subject to the divestment of Johnson & Johnson’s European trauma business, the merged Synthes/Johnson & Johnson entity would continue to face competition from a number of other strong competitors and that customers would still have sufficient alternative suppliers in all of the markets concerned. Under the agreement conditions imposed by the EC, Johnson & Johnson entered an agreement to sell DePuy Orthopaedics’ trauma business to Biomet for US$280 million.

The final purchase price Johnson & Johnson to pay for Synthes is expected to be US$21.3 billion, making it the company’s largest acquisition to date. Under the terms of the acquisition, Synthes will be merged with the DePuy franchise, which offers a broad range of products across the orthopaedic and neurological care markets. The combined Synthes/DePuy business will represent the largest component within Johnson & Johnson’s Medical Devices and Diagnostics segment.

The deal has not yet been approved in the US, where the Federal Trade Commission filed a second request for information in August 2011. The transaction is expected to complete in the second quarter of 2012.

This company report provides
  • Overview
    • Key contact information
    • Introduction to the company and its current activities
    • Summary of its financial performance
    • Who are the company’s major competitors?
    • Key recent events in an “at a glance” format
  • Financial Review
    • Current year and annual financial data, including revenue breakdowns by product area and geographic region (if available)
    • Table providing in-depth five-year financial analysis
    • Employee data, including breakdown by company division and geographic location
  • Strategic Focus
    • Investigates the company’s aims and its areas of focus
  • Products
    • Core product areas, key brands, product approvals and launches
    • Research and Development
    • How much has been invested in R&D?
    • Where is the research based?
    • What alliances and agreements does the company have and with whom?
  • Manufacturing and Distribution
    • Identifying the company’s manufacturing locations
    • Sales and marketing facilities
  • Agreements
    • With whom has the company reached agreements and what do they involve?
    • Key contracts awarded
  • Mergers, Acquisitions, Minority Investments and Divestments
  • Litigation
  • Key Corporate Events


First Quarter 2012 Financial Results
2011 Financial Results
Five-Year Financial Data



Power Tools


R&D Establishments
R&D Investment
AO Foundation
Research Agreements
  Eli Lilly
  Kensey Nash
Studies and Trials
  Trials Comparing Cervical Arthroplasty and ACDF



Kuros Biosurgery
Eli Lilly
Kensey Nash
Smith & Nephew
Musculoskeletal Transplant Foundation (MTF)


N Spine
AO Foundation - Intellectual Property
Mathys Medizinaltechnik AG
P2P Minimally Invasive Spine System
Spine Solutions


Innovative Spinal Technologies


Norian assets
Techron’s non-core business
Prosthetics Business


Spinal Kinetics
Norfolk County Retirement System
US Department of Justice and OIG



Recent Key Events
Synthes - First Quarter 2012 Net Sales
Synthes – Annual Financial Results, 2007-2011
Synthes - Annual Financial Results by Geographic Area, 2007-2011
Synthes – Five-Year Financial Summary, 2007-2011
(Year-ended 31st December, US$ million)
Synthes Trauma Product Summary
Synthes Spine Product Summary
Synthes CMF Product Summary
Synthes Biomaterials Product Summary
Synthes Power Tools Summary
Agreements Summary
Mergers and Acquisitions Summary


Synthes - First Quarter Net Sales Comparison, 2011-2012
Synthes – Annual Sales and Operating Income, 2007-2011
Synthes - Annual Sales by Geographic Area, 2007-2011
Synthes - 2011 Sales by Geographic Area
Synthes Employees, 2007-2011
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