Medacta, the Castel San Pietro, Switzerland supplier of orthopedic and spine implants, instruments, and a comprehensive suite of digital solutions including the market leading NextAR augmented reality platform for both shoulder and knee arthroplasty indications is doubling its production capacity.
The new construction plan will include adding to its Castel San Pietro location as well as its current manufacturing operations in Rancate, Switzerland.
Medacta CEO Francesco Siccardi said, “Today we celebrate another important milestone for Medacta.”
Siccardi continued, “Built on strong values, our growth confirms our dedication to fostering our international expansion to meet patients, medical professionals, and healthcare systems’ needs and expectations. We are excited to keep making investments in our future here in Switzerland, Ticino, where our company was founded.”
Castel San Pietro and Rancate are both located in the canton of Ticino in Switzerland.
According to Medacta, Medacta new manufacturing plants in Ticino will cover more than 36,800 square meters. This investment and expansion is “fundamental for the Company’s forecasted growth.”
The Castel San Pietro expansion will add nearly 5,300 square meters to the production area. This expansion will be operational by the first quarter of 2024 and is expected to generate a number of new jobs.
The Rancate construction will take three years to complete and includes an additional 9,500 square meters. This expansion is in addition to Medacta’s previously announced opening of its 2,100 square meters of new offices in Rancate.
Medacta isn’t just focused on growth in Switzerland. It is also expanding in the United States and Italy. These other offices house Medacta’s logistics and distribution infrastructure to support the global delivery of its products.
This year, Medacta opened a new distribution center in Memphis, Tennessee, called Medacta Americas Operations. According to an earlier press release, Medacta Americas Operations includes more than 108,000 square feet in a newly constructed facility dedicated to serving the market in the United States.
Medacta may also be expanding in northern Italy where it has identified a potential location for a second distribution center called Medacta Europe Operations to serve the European market. Medacta indicated in its most recent press release that it expects the new facility to have up to 10,000 square meters of space and anticipates that it should be operational by mid-2025.
From 16th Largest Supplier to 12th Largest in One Year
For 2022, Medacta Group SA ended the year at $513 million in sales (471 million Euros) and a profit margin (EBITDA) of 27.6% of sales—which would be about $142 million.
For the first half of 2023 (Medacta only reports six-month figures—not quarterly as most U.S. based public companies do—U.S. firms should seriously consider thinking and reporting on a more long term basis), Medacta reported $278 million in sales (255.1 million Euros), up an industry leading 21.4% from the prior year. Profit margin (EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization) was 21.4%.
At this rate, Medacta should end 2023 reporting $560-580 million in sales—making it the 12th largest manufacturer of orthopedic and spine products in the world—up from 16th largest in 2022.
