Zimmer Biomet (ZBH) has appointed Vafa Jamali as CEO of its newly formed spine and dental spinoff company, NewCo. After an extensive search, the company selected Mr. Jamali for his "extensive knowledge and experience in building teams, developing long-term growth strategies, prioritizing resources, driving execution and delivering growth across the medical device industry."
Jamali most recently served as the Chief Commercial Officer of Rockley Photonics. Before that, he was President of Medtronic's Respiratory, Gastrointestinal & Informatics business that generated over $3 billion in annual revenue.
Zimmer Biomet announced in early 2021 that it will spin off its chronically underperforming spine and dental businesses into a new publicly-traded company called, for now, NewCo. The move is a culmination of ZBH's strategic shift toward active portfolio management as the company turns the corner on the inventory and organizational woes it faced in recent years.
The spinoff is a pathway to significant positive portfolio impact in a capital-constrained environment. Zimmer Biomet CEO Bryan Hanson acknowledged the lack of synergy between spine and dental, but pointed to the importance of achieving scale in the $1 billion revenue range, a benchmark for what he called "a viable publicly-traded company."
The spinoff transaction is expected to close in mid-2022.