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Is Zimmer (NYSE: ZMH ) hoping to take a bigger bite out of the medical device market by acquiring Astra Tech, the AstraZeneca (NYSE: AZN ) division that produces dental implants? Warsaw, Ind.-based Zimmer, with a sizeable dental implant business of its own, is rumored to be among the key bidders for the Astra Tech. Zimmer may feel an increased sense of urgency to open its pocketbook a little wider to make the deal happen. That’s because Johnson & Johnson (NYSE: JNJ ) appears to be on the cusp of further boosting its medical device leadership by scooping up the Swiss-American medical equipment maker Synthes in a deal approaching $20 billion. It’s been reported that there are about 20 bidders lined up for Astra Tech and that the company can be had for about $2 billion. It would be a nice addition to Zimmer’s own dental implant business, although it’s not going to cause investors to immediately do somersaults. After all, in 2010 sales of dental implants accounted for a relatively slim 5% of Zimmer’s $4.2 billion in sales. Last year, Astra Tech had sales of $535 million, which was up 6% from a year earlier. That includes not only dental implants but sales of the division’s market leading hydrophilic intermittent self catheters and its autologous blood management products. But the future for the dental implants business looks promising.  Implants already hold a substantial 18% share of the global dental device market. And they’re expected to have one of the highest growth rates among all dental device submarkets. This is primarily because they offer an effective treatment for edentulism, a complete loss of natural teeth , and because of the rising demand for cosmetic dentistry worldwide across all age groups. The global implants market is expected to grow 6% annually to $4.2 billion in 2015. Europe currently forms the world’s largest market for dental implants with a 42% market share, and is also expected to have the highest annual increase, 7%, from 2010 to 2015. Zimmer claims it had a 6% share of the market in 2010. Even if Zimmer doesn’t nail the Astra Tech deal, the company shares still merit consideration. Zimmer is already the leader in the huge and growing market for knee and hip replacement devices. That’s a nice spot to be in, especially considering that joint reconstruction will remain the largest orthopedic-implant category, reaching $22.9 billion by 2016. And it’s highly profitable too, with margins in the 35% range. In the past six months, Zimmer has outpaced the Dow, enjoying a nearly 20% increase in its share price. Moreover, the potential acquisition of Synthes by J&J just emphasizes to investors that as far as health care is concerned, medical devices may be an even better performer than drugs and biotechnology.  Perhaps the addition of Astra Tech will put even more teeth in Zimmer shares.

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• astratech
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• Astra Tech financial
• shell natural gas
• dental implant market sales 2010
• brcd buyout
• AstraTech sale news
• AstraTech financial
• astra tech sell

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