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DJ Orthopedics Expands in Rehabilitation

Often overlooked in all the interest in orthopedics is the non-surgical side, a product area that includes a wide range of supports and braces--soft goods as opposed to hard implants--used to treat a number of musculoskeletal problems. Indeed, given that non-surgical approaches represent an important front line in treatment options for patients with such problems-in spine, for example, surgical interventions are used in barely more than 10% of all patients complaining of back pain-it's surprising that more attention isn't paid to this segment. One company that has made the non-surgical orthopedics market a focus is dj Orthopedics Inc. who, with its acquisition of Aircast Inc. further enhances what is already a number-one market share position in the $1.2 billion US rehabilitation products market.

Over the past several years, the surgical side of orthopedics—most notably, total joint replacement and spine—have been among the device industry's best performing segments. Though orthopedic giants like Stryker Corp. , Zimmer Holdings Inc. , and Biomet Inc. took hits in 2005 due to concerns about potential pricing pressures and government scrutiny, orthopedic stocks had been trading at such a premium for the better part of a half decade that the sector overall has been one of the strongest from an investor's perspective.

Often overlooked in all the interest in orthopedics, however, is the non-surgical side, a product area that includes a wide...

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