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Zimmer Biomet reported 4Q19 orthopedic revenue of USD $1,896.7 million, 2.5% vs. 4Q18, with full-year 2019 revenue of $7,112.3 million, +0.4% vs. 2018. While the company is still losing knee market share in the U.S., the rate of loss was mitigated by a strong 4Q. ROSA contributed approximately $16 million in the quarter and has been used in over 2,000 cases to date. Zimmer Biomet is increasing its investment in enabling technology and expects partial knee and hip applications for ROSA to be available within 2020. Leadership is confident in ROSA’s placement funnel and potential to convert competitive accounts but did concede that it will take time to disrupt the inertia created by Stryker’s 800+ Mako placements.
- The company is undertaking a multi-year restructuring designed to reduce complexity in both the commercial organization and the supply chain.
- FDA concluded a re-inspection of Zimmer Biomet’s North Warsaw Campus and provided eight observations that the company believes are manageable and can be completed to FDA’s satisfaction.
- Zimmer Biomet intends to give more focus to and investment in the areas of sports medicine and lower extremities.
- The company expects growth in the range of 2.5% to 3.5% in 2020.
“We’ve taken a hard look at the R&D pipeline and started to bias more toward robotics and informatics. It doesn’t mean that we’re not going to continue to do implants. But the fact is, most of the money now is shifting toward ROSA, mini robotics, informatics and efficiency in doing the procedure.” – Bryan Hanson, Zimmer Biomet President and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,386.9 | $1,336.2 | $50.7 | 3.8% |
| Knees | $761.0 | $729.5 | $31.5 | 4.3% |
| Hips | $511.0 | $497.7 | $13.3 | 2.7% |
| Extremities | $114.9 | $109.0 | $5.9 | 5.5% |
| Spine | $113.8 | $114.7 | ($0.9) | (0.8%) |
| Trauma | $155.4 | $152.7 | $2.7 | 1.8% |
| Sports Medicine | $35.5 | $35.9 | ($0.4) | (1.1%) |
| Orthobiologics | $75.9 | $74.0 | $1.9 | 2.5% |
| Other * | $129.1 | $136.1 | ($7.1) | (5.2%) |
| Total | $1,896.7 | $1,849.7 | $47.0 | 2.5% |
| FY19 | FY18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $5,175.4 | $5,110.5 | $64.9 | 1.3% |
| Knees | $2,810.6 | $2,773.7 | $36.9 | 1.3% |
| Hips | $1,934.6 | $1,921.4 | $13.2 | 0.7% |
| Extremities | $430.2 | $415.4 | $14.8 | 3.6% |
| Spine | $432.0 | $453.1 | ($21.1) | (4.7%) |
| Trauma | $593.4 | $580.7 | $12.7 | 2.2% |
| Sports Medicine | $138.0 | $135.0 | $2.9 | 2.2% |
| Orthobiologics | $284.5 | $286.8 | ($2.3) | (0.8%) |
| Other * | $489.0 | $515.7 | ($26.6) | (5.2%) |
| Total | $7,112.3 | $7,081.7 | $30.6 | 0.4% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,149.1 | $1,124.4 | $24.6 | 2.2% |
| Ex-US | $747.6 | $725.2 | $22.4 | 3.1% |
| EMEA | $420.2 | $425.1 | ($4.9) | (1.2%) |
| Asia Pacific | $327.4 | $300.1 | $27.3 | 9.1% |
| Total | $1,896.7 | $1,849.7 | $47.0 | 2.5% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $2,125.7 | |
| Cost of Sales | ($582.2) | 27.4% |
| Selling and Admin | ($882.2) | 41.5% |
| R & D | ($121.1) | 5.7% |
| Other | ($218.8) | 10.3% |
| Net Earnings | $321.4 | 15.1% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Zimmer Biomet reported 4Q19 orthopedic revenue of USD $1,896.7 million, 2.5% vs. 4Q18, with full-year 2019 revenue of $7,112.3 million, +0.4% vs. 2018. While the company is still losing knee market share in the U.S., the rate of loss was mitigated by a strong 4Q. ROSA contributed approximately $16 million in the quarter and has been used...
Zimmer Biomet reported 4Q19 orthopedic revenue of USD $1,896.7 million, 2.5% vs. 4Q18, with full-year 2019 revenue of $7,112.3 million, +0.4% vs. 2018. While the company is still losing knee market share in the U.S., the rate of loss was mitigated by a strong 4Q. ROSA contributed approximately $16 million in the quarter and has been used in over 2,000 cases to date. Zimmer Biomet is increasing its investment in enabling technology and expects partial knee and hip applications for ROSA to be available within 2020. Leadership is confident in ROSA’s placement funnel and potential to convert competitive accounts but did concede that it will take time to disrupt the inertia created by Stryker’s 800+ Mako placements.
- The company is undertaking a multi-year restructuring designed to reduce complexity in both the commercial organization and the supply chain.
- FDA concluded a re-inspection of Zimmer Biomet’s North Warsaw Campus and provided eight observations that the company believes are manageable and can be completed to FDA’s satisfaction.
- Zimmer Biomet intends to give more focus to and investment in the areas of sports medicine and lower extremities.
- The company expects growth in the range of 2.5% to 3.5% in 2020.
“We’ve taken a hard look at the R&D pipeline and started to bias more toward robotics and informatics. It doesn’t mean that we’re not going to continue to do implants. But the fact is, most of the money now is shifting toward ROSA, mini robotics, informatics and efficiency in doing the procedure.” – Bryan Hanson, Zimmer Biomet President and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,386.9 | $1,336.2 | $50.7 | 3.8% |
| Knees | $761.0 | $729.5 | $31.5 | 4.3% |
| Hips | $511.0 | $497.7 | $13.3 | 2.7% |
| Extremities | $114.9 | $109.0 | $5.9 | 5.5% |
| Spine | $113.8 | $114.7 | ($0.9) | (0.8%) |
| Trauma | $155.4 | $152.7 | $2.7 | 1.8% |
| Sports Medicine | $35.5 | $35.9 | ($0.4) | (1.1%) |
| Orthobiologics | $75.9 | $74.0 | $1.9 | 2.5% |
| Other * | $129.1 | $136.1 | ($7.1) | (5.2%) |
| Total | $1,896.7 | $1,849.7 | $47.0 | 2.5% |
| FY19 | FY18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $5,175.4 | $5,110.5 | $64.9 | 1.3% |
| Knees | $2,810.6 | $2,773.7 | $36.9 | 1.3% |
| Hips | $1,934.6 | $1,921.4 | $13.2 | 0.7% |
| Extremities | $430.2 | $415.4 | $14.8 | 3.6% |
| Spine | $432.0 | $453.1 | ($21.1) | (4.7%) |
| Trauma | $593.4 | $580.7 | $12.7 | 2.2% |
| Sports Medicine | $138.0 | $135.0 | $2.9 | 2.2% |
| Orthobiologics | $284.5 | $286.8 | ($2.3) | (0.8%) |
| Other * | $489.0 | $515.7 | ($26.6) | (5.2%) |
| Total | $7,112.3 | $7,081.7 | $30.6 | 0.4% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,149.1 | $1,124.4 | $24.6 | 2.2% |
| Ex-US | $747.6 | $725.2 | $22.4 | 3.1% |
| EMEA | $420.2 | $425.1 | ($4.9) | (1.2%) |
| Asia Pacific | $327.4 | $300.1 | $27.3 | 9.1% |
| Total | $1,896.7 | $1,849.7 | $47.0 | 2.5% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $2,125.7 | |
| Cost of Sales | ($582.2) | 27.4% |
| Selling and Admin | ($882.2) | 41.5% |
| R & D | ($121.1) | 5.7% |
| Other | ($218.8) | 10.3% |
| Net Earnings | $321.4 | 15.1% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
