Iron Is Hot at Stryker

Investors in the big orthopedic device makers are keeping an eye on a pricing standoff with a big customer.

Last year, HCA (HCA Quote) promised Zimmer (ZMH Quote), Stryker (SYK Quote) and the DePuy unit of Johnson & Johnson (JNJ Quote) the bulk of its business in return for price cuts on their artificial hips and knees. The hospital operator is struggling to bring skyrocketing implant prices under control.

HCA has been fighting an uphill battle to win over notoriously brand-loyal orthopedic surgeons and make the arrangement work. But salespeople for competing device makers such as Biomet (BMET Quote) and Smith & Nephew (SNN Quote), which were left out of the company's deal, indicate the big hospital chain may be making some progress. ...