Zimmer Biomet reported second-quarter results that included a constant-currency topline of 5% and flat adjusted EPS growth, driven by trauma and extremities, as well as technology and data.
Zimmer Biomet has made impressive progress in placing its Rosa robots in hospitals and ambulatory surgical centers, paving the way for higher-margin implant pull-through.
Bears
The scarcity of high-quality comparative effectiveness research data makes it more difficult for orthopedic companies to secure premium pricing at the same time payers and hospitals are raising the bar for cost-effectiveness.
Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants as well as supplies and surgical equipment for orthopedic surgery. With the acquisitions of Centerpulse in 2003 and Biomet in 2015, Zimmer holds the leading share of the reconstructive market in the United States, Europe, and Japan. Roughly two-thirds of total revenue is derived from sales of large joints; another fourth comes from extremities, trauma, sports medicine, and related surgical products. The firm spun out its dental and spine businesses in 2022.