Summary: 2009 is likely to be a challenging year for analytical tools companies. They are hopeful that the economic stimulus bill will translate to at least flat year-to-year sales, particularly to academic labs, but prices are under heavy pressure, and all customers are being very cautious about big ticket purchases. ♦ Most laboratories are stretching the life cycle of existing equipment by at least a year, only replacing things when they become unreliable or break. ♦ Pharmas are still buying capital equipment but carefully and cautiously, with heavy oversight on expensive items. Pharma mergers are not expected to affect equipment sales to other pharmas, but universities, contract research organizations, and non-pharma companies, particularly smaller ones, are likely to snap up any surplus pharma equipment. ♦ Food safety is one possible growth area for tools, with a mixed outlook for environmental testing and stem cell research. ♦ Academic labs will have stimulus and NIH money to spend, and one key thing they want is mass spectrometry devices, which may translate to sales by the end of this year. ♦ The new products generating the most interest were hand-held detection devices that can be used to identify contaminants.

American Academy of Orthopaedic Surgeons

Summary: Total joint implants have not yet been affected by the recession, but for 2009 the outlook is for volume to be down 5%. There continues to be hospital pressure on implant prices, but no increase in that. ♦ Industry was a bit circumspect in marketing at AAOS this year, but business was getting done, though no share shifts were apparent. Zimmer, in particular, seemed “back to normal.” ♦ Orthopedic surgeons are likely to be slow to abandon warfarin for newer anticoagulants, but Bayer/Johnson & Johnson’s Xarelto (rivaroxaban) and Boehringer Ingelheim’s Pradaxa (dabigatran) may replace LMWH quickly. ♦ Robotic systems like Mako’s Rio are fascinating, but hospitals are not expected to spend nearly a million dollars for such technology in the current budget environment. ♦ Spine surgeon use of BMP is decreasing, but surgeons are hopeful about stem cell products for the future. Artificial discs are slowly gaining acceptance. ♦ Smith & Nephew is now competing with Kinetic Concepts in negative pressure wound therapy. ♦ CMS will continue to pursue value based purchasing, with an emphasis on patient outcomes. ♦ The FDA is concerned about several off-label orthopedic practices.