The 2012 Top 30 Global Medical Device Companies

The word “normal” is a relative term. Civilized societies have used it for centuries to describe any type of activity, behavior, emotion, habit or trait that its members deem common or appropriate. Normal has no universal representation; it has long maintained a chameleon-like tendency to assimilate easily into its surroundings. Over the last several years, “normal” has transformed itself quite effectively (and drastically, some would argue) in the medical device sector, an industry built on equal parts of risk and innovation. Since the start of the Great Recession, “normal” has taken on a vast array of different meanings. It now describes the dried-up capital markets, the pricing pressures, and the tough regulatory landscape facing major medtech manufacturers. It also defines the stock market’s chronic bipolar disorder and the economy’s feeble recovery efforts. Such a confluence of “new normal” realities is forcing device manufacturers to rely on some unconventional methods for long-term growth.

Rather than foster expansion solely through innovative technologies, companies increasingly are turning to acquisitions and emerging markets to secure their futures. Many of the companies in this year’s report made significant investments in other parts of the world to boost sales in 2011 or created their own venture capital programs to invest in promising new technologies. Baxter International Inc., for instance, formed Baxter Ventures as a means to enhance its early stage product pipeline and ultimately turn high-potential concepts into commercial reality. “We are not going to go back to where we’ve come from,” Mohamed A. El-Erian, CEO and co-chief information officer of PIMCO, the Newport Beach, Calif.-based global investment solutions provider best known for bond investing, warned during a 2009 global investment conference. “The notion should not be, ‘Is this recession going to be over?’ [The notion] should be, ‘What does the new normal look like when the system stabilizes?’”

Chances are it will look anything but normal.

Editors’ note: As you read our report, please take note that while the companies are ranked according to sales reported for FY 2011 (though we do provide some 2012 figures to date where possible), some may include non-device sales within a division, such as combination products, drug delivery, software or device-related services. Not all companies explicitly break out the device portion of total revenues. We consulted numerous public documents and contacted company officials as needed to arrive at the best estimates. Also note that foreign currency conversions were done based on the exchange rate at the end of the fiscal reporting period being discussed.