Biomet, Zimmer Clash on Pricing Picture

Biomet (BMET) has often looked downright nimble compared with its older and heftier peers.

While rival orthopedic device makers have been pinched by belt-tightening at big customers like hospitals, Warsaw, Ind.-based Biomet has continued to secure premium prices. Many credit the company's innovative edge and the drive of founding CEO Dane Miller for that success.

But now a test is emerging that may challenge even fleet-footed Biomet's mettle. Observers say the economics of the implant business are getting even tougher for these manufacturers, owing to deepening cutbacks at hospitals. More surprising, perhpas, is the identity of one emerging skeptic of the industry's growth prospects: Ray Elliott, chief of Biomet rival Zimmer (ZMH). ...