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Biomet Inc.

Headquartered in the indiana community of Warsaw, Biomet Inc. designs, manufactures and markets orthopedic products, including reconstructive and trauma devices, electrical bone growth stimulators, support devices and operating room supplies. The company has manufacturing facilities in the United States and the United Kingdom. Its products are marketed in the United States through independent sales representatives, in the United Kingdom by direct factory representatives, and elsewhere by specialty medical dealers.

1990's new products

Biomet introduced several new products to the market during the first quarter of fiscal year 1990. It entered the surgical powered instrument market midway through the fourth quarter with the introduction of its Micro Power System. Designed for small bone reconstructive surgery, this unique system firmly positions Biomet in the estimated $60 million surgical powered instrument market in the United States. Neoprene support products also were introduced in 1990 and will help the company penetrate the growing sports medicine market. The company enhanced its bone healing system to enhance patient comfort and compliance during the bone healing treatment, thus affording a higher bone healing success rate.

Research and Development

To maintain a competitive position in the orthopedic market, Biomet introduces products with unique designs and materials and also focuses on long-term projects that have the potential of revolutionizing the industry. To stay more than competitive, Biomet's research and development activities are concentrated in two areas: product engineering and applied technology. Biomet has become a recognized leader in the total-knee replacement market. In 1990, Biomet, through a joint venture, started production of a composite-based total hip system as it advanced from the prototypical stage of development. The first human implants were performed in Europe. Human clinical trials now are approved in the United States. Biomet also is currently undergoing clinical studies with coatings that bond directly to the bone at the cellular level. Biomet is focused on producing products that incorporate biologically active proteins to enhance bone cartilage formation. This project may have a large effect in revolutionizing orthopedics during the next decade, as the proteins could be used to promote bone formation after reconstructive surgery.

Financial

Biomet experienced record financial results during fiscal year 1990. Biomet's fourth quarter represented the 27th consecutive quarter of increases in both sales and earnings. Sales increased 20 percent to $162.38 million in fiscal year 1990. Net income was $29.93 million in 1990, a 39 percent increase. Earnings per share surged 38 percent to $1.08 in fiscal year 1990. Additionally, cash investments grew dramatically during fiscal year 1990 to $42.88 million. The company has 27.86 million common shares outstanding--19 percent owned by officers and directors, 52 percent owned by institutions and 29 percent owned by the public--and a total of about 4,000 shareholders of record. The company to date has no outstanding long term debt.

Valuation

Biomet continues to position itself for growth. The market for advanced orthopedic products continues to expand as the U.S. population ages, and Biomet is making certain that it will continue or expand its share of that market by constantly releasing new products. Continued strong profit is likely. Biomet has never paid a dividend, but has a history of stock splits. The last split was a 3-for-2 in 1989. The stock is now a Standard & Poor's 500 company. Biomet is a stock to be considered for any growth portfolio.
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Title Annotation:Investment Indiana
Publication:Indiana Business Magazine
Article Type:company profile
Date:Oct 1, 1990
Words:558
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