Leerink says consolidation in the ortho space is likely in the "early innings" after reports surfaced that Medtronic (MDT) is considering a bid for Smith & Nephew (SNN). The firm views Smith & Nephew's product portfolio as "highly complementary" to Medtronic, and estimates the potential deal would be meaningfully dilutive in year one and likely neutral to accretive thereafter. Leerink notes that recent Smith & Nephew takeover reports have pressured small cap names in the space, namely Globus Medical (GMED), NuVasive (NUVA) and Wright Medical (WMGI), all of which are considered potential acquisition targets. The firm expects the large deals to get done first, with attention then turning to small-to-mid sized acquisitions. It reiterates Outperform ratings on Globus, NuVasive and NuVasive.