Originally Published MX May/June 2006
BUSINESS NEWS
Majority of Top 20 Medtech Companies Post Double-Digit Sales Growth in 2005Continuing a well-established pattern of financial performance that is relatively free from the cyclical nature of many high-technology sectors, the world's leading public medical device manufacturers generally experienced a good year in 2005, with 12 of the top 20 companies posting double-digit revenue gains over 2004 (see Table). All are listed on the New York Stock Exchange.
|
Company
|
2005
Revenues
($ billions) |
2004
Revenues
($ billions) |
Variance
(%) |
Stock
Symbol
(all NYSE) |
| Johnson & Johnson |
19.096
|
16.887
|
6.7
|
JNJ
|
| GE Healthcare |
15.153
|
13.456
|
12.6
|
GE
|
| Medtronic1 |
11.003
|
9.942
|
10.7
|
MDT
|
| Baxter International Inc. |
9.849
|
9.509
|
3.6
|
BAX
|
| Tyco Healthcare |
9.511
|
9.250
|
2.8
|
TYC
|
| Siemens Medical Solutions2 |
9.481
|
8.441
|
12.3
|
SI
|
| Cardinal Health3 |
8.476
|
7.358
|
15.2
|
CAH
|
| Philips Medical Systems2 |
7.561
|
7.014
|
7.8
|
PHG
|
| Boston Scientific Corp. |
6.283
|
5.624
|
11.7
|
BSX
|
| Abbott3 |
5.897
|
5.174
|
14.0
|
ABT
|
| Becton Dickinson & Co. |
5.540
|
5.037
|
10.0
|
BDX
|
| Stryker Corp. |
4.872
|
4.262
|
14.3
|
SYK
|
| 3M Healthcare |
4.373
|
4.230
|
3.4
|
MMM
|
| Guidant Corp. |
3.550
|
3.765
|
-5.7
|
GDT
|
| Zimmer Holdings |
3.286
|
2.981
|
10.4
|
ZMH
|
| St. Jude Medical |
2.915
|
2.294
|
27.1
|
STJ
|
| Kodak Health Group |
2.655
|
2.686
|
-1.2
|
EK
|
| Smith & Nephew4 |
2.446
|
2.171
|
12.7
|
SNN
|
| Beckman Coulter Inc. |
2.444
|
2.408
|
1.5
|
BEC
|
| Alcon Inc. |
2.017
|
1.814
|
11.2
|
ACL
|
| 1Revenues
for the 12-month period ending January 31, 2006 2Financial data originally reported in euros. 3Estimated; Abbott and Cardinal Health do not provide detailed data for their medical product sectors. 4Financial data originally reported in pounds. |
||||
| Revenues of world's top 20 public medtech firms for the 12-month period ending December 31, 2005, regardless of fiscal year. Only divisions reporting medical product revenues are included; pharmaceutical, consumer-product, and healthcare services divisions are excluded. All financial data obtained from company financial reports. | ||||
The company showing the greatest year-over-year improvement is St. Jude Medical Inc. (St. Paul, MN), whose revenues soared from $2.29 billion to $2.92 billion—a gain of more than 27%. A good portion of St. Jude's growth is believed to be market share captured from Guidant Corp. (Indianapolis), which saw sales decline by 5.7% in the face of product failures and extensive recalls in its cardiac rhythm management line. The only other company to report declining revenues was Kodak Health Group, a unit of Eastman Kodak Co. (Rochester, NY), which reported a 1.2% slippage in the hotly contested medical imaging capital equipment market.
The orthopedics sector turned in impressive numbers, with Stryker Corp. (Kalamazoo, MI), Smith & Nephew plc (London), and Zimmer Holdings Inc. (Warsaw, IN) posting sales gains of 14.3%, 12.7%, and 10.4%, respectively. Johnson & Johnson Inc. (J&J; New Brunswick, NJ), GE Healthcare (Chalfont St. Giles, UK), and Medtronic Inc. (Minneapolis) held on to the top three spots again this year. T
he top 20 firms generated $136.4 billion in revenues during 2005, ranging from $2 billion in sales at Alcon Inc. (Hunenberg, Switzerland) to J&J's $19.1 billion. Only four of the market leaders are based outside the United States: Siemens Medical Solutions, a division of Siemens AG (Munich); Philips Medical Systems, a unit of Royal Philips Electronics (Amsterdam, The Netherlands); Smith & Nephew; and Alcon.
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