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Surgeon consulting pelvic x-rays for a hip replacement.
Surgeon consulting pelvic x-rays for a hip replacement.
(iStockphoto)

Stocks poised to benefit from 700% surge in knee replacement surgery

The sheer volume of big-name merger and acquisition activity, highlighted Thursday by rumours of a General Electric Co. bid for French energy and transportation giant Alstom SA, has attracted many investors’ attentions away from the deal that interests me most, in the orthopedics sector.

Indiana-based Zimmer Holdings Inc. agreed Wednesday to acquire rival Biomet Inc. for $13.4-billion (U.S.). For investors, the deal highlights an industry where a number of powerful trends – notably demographics and the increasing prevalence of obesity – form an exceedingly bright outlook.