Here's their overall thesis...
We believe orthopedics will emerge as the single most promising source of future investor returns in healthcare, given the confluence of demographics, technology and global expansion. While other healthcare categories such as cardiovascular devices, cancer or biotech may have been more lucrative in the past, what the American Association of Orthopedic Surgeons (AAOS) calls the "Decade of Orthopedics" provides the best opportunity for future investor profits in healthcare.
A number of elements will create this opportunity for the next ten years:
- Increased life expectancies, which is a powerful demand driver that uniquely favors orthopedic devices.
- Technological innovation, which will change the entire complexion of the industry.
- Attractive industry economics and profitability.
- Combined, these elements will cause the industry to grow more than three fold from $20 billion per year to $65 billion in the coming decade resulting in as much as $75 billion of potential investor profits.
This combination of factors supports sustained, attractive industry valuations.
Well said! Of course, it paints a pretty picture not just for investors, but orthopedic manufacturers and anyone lucky enough to sell such products. You can read more and subscribe to their newsletter at www.healthpointcapital.com