Orthopedics Business Slowing in Recession

A report released by Johnson & Johnson has revealed that the $11 billion orthopedics market has suffered a distinct lack of sales in the second quarter, judging from J&J’s lack of replacement hip and knee sales. Analysts have quickly blamed the sales slowdown on the recession, which has caused many potential patients to hold off on their orthopedic surgeries.
 
As a result of J&J’s report, shares in orthopedics companies dropped today. Although underperformance is mostly expected in the business world due to the recession, analysts have expressed their concerns that the orthopedics industry may be struggling more than expected.
 
J&J’s main competitors have yet to release their reports for this quarter, but their shares have fallen across the board anyway. However, J&J experienced a minor 0.9 percent increase in share value, up to $58.23, performing better than many analysts had expected. The orthopedics industry should be expanding robustly, according to how it has done in the past, but expansion has instead slowed considerably.

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