Elos Medtech's orthopedics business will benefit from new investments to meet increased customer demand in 2021 and ensure long-term growth in line with the company's strategic business plan.
Elos Medtech is well-established in robotic-assisted surgery, with several strategic customers. Robotic surgery continues to develop, even during the current pandemic, and is considered a growth engine in the orthopedic market. Within a few years, the company expects about half of the sales within orthopedics will be products for robotic surgery. Already in 2021, increased annual sales of approximately SEK 100 million (~USD $11 million) are expected. This requires investments in machinery, personnel and other equipment, primarily in the Memphis, Tennesee site, of approximately SEK 70 million (~$7.8 million) over a three-year period.
The company has developed a strong product offering in orthopedics through specialization and investments in the company's core competencies. For 2019, the company reported orthopedic revenue of SEK 229.6 million ($26 million), +14.8% vs. 2018. Last year, the expansion of Elos Medtech's site in Memphis was completed as part of the Group's strategic growth plan.
“We are very pleased that our customers are showing great interest in the focused work and investments we have previously made in Orthopedics. We now have multi-year forecasts that confirm our investments in orthopedics. This significant demand is a major step towards achieving our long-term goals for growth and profitability," said Jan Wahlström, President and CEO.
“We are gaining sales within robotic-assisted surgery thanks to our demonstrated expertise in this key market, our long-term specialization in selected products and close working partnerships with our strategic customers. It is very exciting to see this market trend continue to develop and drive significant revenue growth in the near term,” said Jodie Gilmore, Global Business Director Orthopedics.
Elos Medtech is a development and production partner for medical devices and components, with a focus on dental and orthopedic implants and instruments. The company operates from facilities in Sweden, Denmark, China and the U.S.