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Baird downgrades orthopedic companies Biomet, Inc. (BMET
), Stryker (SYK
), Wright Medical Group (WMGI
), and Zimmer Holdings (ZMH
Analyst Suey Wong downgrades Biomet, Stryker, Wright Medical Group, and Zimmer Holdings to neutral from outperform following news of a Department of Justice investigating orthopedics industry regarding payments to surgeons for various consulting and professional service deals.
He notes although abuse of such relationships in other industries (namely large-cap pharma) led to significant monetary penalties in recent years, he believes each of his orthopedic companies have likely done a relatively good job of policing themselves in recent years.
Wong believes this issue will further add to negative sentiment currently weighing on group.