Question-and-Answer Session
Operator
(Operator instructions). Your first question comes from Tao Levy with Deutsche Bank.
Tao Levy – Deutsche Bank
Hi, good morning.
David Dvorak
Good morning, Tao.
James Crines
Hi Tao.
Tao Levy – Deutsche Bank
So just simply if you look at the overall market and thanks for all the data you guys have provided. If you look at the volumes mid-single digits and again when you look at pricing for you guys, it seems like maybe it was down a little bit more than what we heard from competitors. Given that backdrop, what are you looking for pricing going forward and also with the volume specifically in the second quarter, are you seeing any trends now that make you feel better about where that 5% was in Q1 or maybe a little bit worse and then you’re thinking more that recovery into the 6% takes place in the second half of the year? Thanks.
James Crines
Yes, Tao, this is Jim. Just on pricing, I’d say where we are on pricing is really pretty consistent with what we saw in the back half of last year. And as I indicated in my comments, we see that the opportunity for that to improve for us certainly going into the balance of the year given the – that we anniversary out of the reimbursement price cuts in the Asia-Pacific region that took place in April of 2008.
So we understand and we would acknowledge that it’s certainly a challenging environment on the pricing front, but it has been for the past couple of years, those conversations really haven’t changed and you’re seeing the effect of what’s happening in the field and what we are reporting over the past several quarters.
And then I would tell you with respect to the overall growth in the market, it’s pretty much in line what we anticipated coming into the year notwithstanding the fact that maybe a bit more deceleration in Knee procedure growth in the fourth – in the first quarter.
But as we look at mix and volume opportunities over the balance of the year as we said – as I said in my comments, we do believe that the – the market is likely to grow in 2009 at that sort of 6% level as the procedure comps get a little easier in the back of the year and those price comps get easier in the balance of the year. Mixed opportunities we think in our particular case improve as we go into the balance of the year and we’ll have these medical education programs up and running at full tilt.
- To read the full transcript on Seeking Alpha, click here »
