Last week, I told you that it was just about time to wave goodbye to the most prosperous times in the orthopaedics industry.
This week, I’m offering a dose of positive insight about Mako Surgical and Kanghui Medical. These guys are expected to report higher-than-anticipated revenue in Q2 2011, according to the analysts at Canaccord Genuity, thanks to spine and knee systems.
China-based Kanghui Medical’s growth will be driven by the eight trauma and spine products that it released in 2009 and 2010. The company, which could hit $11.2 million in revenue this quarter, launched a kyphoplasty system earlier this year and could be entering the joint implant segment next year. Kanghui also has an advantage in competing against multinational companies in China, because the country shows preference to reimbursing domestic implants, which tend to cost less.
Mako Surgical’s robot sales could push the company to the $16.8 million revenue mark in Q2, and the higher than anticipated placement of its RIO System will help. Last year, the company began an orthopaedic surgeon preference evaluation following the clearance of its Makoplasty system for the hips. Although it’s too premature to assess the user interest in the product, analysts expect the company to shed some light on where the product is headed by the end of the second quarter.--Maria Fontanazza