Zimmer has applied to the Center for Medicare Services for a new add-on payment for the Dynesys. An add-on payment is meant to provide hospitals with an additional reimbursement for using "innovative" devices whose value is not yet determined or represented under the CMS, DRG system. In 2004, Dynesys was cleared as an adjunct to fusion, today, the company is seeking PMA approval as a non-fusion device. Professor Dvorak was quoted as saying that the integration of Abbott is coming to a close, but, Zimmer will see some revenue "dis-synergy" (duh, they must have taught that in law school) and disruption in their spine business.
On the other hand, Stryker's CFO Curt Hartman stated that US sales for spine were up 4%. In his most macho CFO manner he is quoted as saying that this is "clearly below our historical average in the market (hello Curt). Pricing pressures, product launch delays and gaps in product offerings? Curt (stick to finance) Hartman is quoted as saying; "Probably the biggest thing we're missing is a ........ great cervical plate offering." Was that a question, or, was he guessing, and is he serious? Just what the industry needs is another cervical plate offering. Steve, you don't mind that I call you Steve? You need to rein in Mr. Hartman. Don't worry, the analysts will give you a pass considering what just happened with the economy. One word of advice, if you decide to buy something, think about the integration process, based on the fiasco with the Howmedica acquisition we don't want to see Stryker has some revenue dis-synergy.