The offer of $20 billion being discussed by Johnson & Johnson Inc. to purchase Synthes Inc., based in Pennsylvania, Switzerland and Germany, highlights the value of Swiss CNC machining today.
J & J bought DePuy, the orthopedic implant pioneer, located in Warsaw, Indiana, in 1998. They evidently like the medical device business with millions of aging baby boomers potentially looking for spinal disc surgery and knee and hip replacements. The disturbing diabetes epidemic, fostered by America’s obesity explosion will mean more amputations and usage of Synthes surgical tools.
I have no idea whether J & J is overpaying, but for a company with loads of cash and a mediocre pharmaceutical business, J & J doubling down to buy Synthes, a company with cash generated by foreign operations, must look attractive to its accountants.
The potential Synthes acquisition will make the folks at Swiss CNC firms even happier going in to the PMTS Show because it highlights the massive opportunity available in medical and dental implants.
Question: Do you have a medical implant, and if so, has it worked well for you?