In recent years, Zimmer Biomet focused on elevating its overall growth rate by investing in faster-growing orthopedic segments like sports medicine and shoulders. Knee replacement and hip replacement sales made up more than two-thirds of the company’s $7.6 billion in revenue in 2024, but have CAGRs of just 1.8% and 1% respectively since 2016.
Since 2020, foot and ankle emerged as a sizable market growing in the high-single-digits and ripe for consolidation. But Zimmer Biomet could never generate the same foot and ankle momentum as its peers. At the end of 2023, the company said foot and ankle sales made up just 4% of its S.E.T. category, or around $70 million.
Zimmer Biomet made a major move to contend in the foot and ankle space when it entered into a definitive agreement to purchase all outstanding shares of common stock of Paragon 28 for a total enterprise value of $1.2 billion. The transaction is expected to close in the first half of 2025. The deal, once closed, will boost Zimmer Biomet’s foot and ankle revenue to more than $320 million.
Our chart of the month shows Zimmer Biomet’s hip replacement sales compared to its overall S.E.T. sales from 2016 to our estimated 2025. S.E.T. sales for 2024 and 2025 are pro forma, inclusive of Paragon 28 estimated revenue.
Assuming the transaction closes, the company’s combined S.E.T. segment revenue will outsize its hip franchise and grow faster than both its knee and hip franchises. Paragon 28 moves Zimmer Biomet closer to its goals of mid-single-digit growth and category leadership in foot and ankle.
In recent years, Zimmer Biomet focused on elevating its overall growth rate by investing in faster-growing orthopedic segments like sports medicine and shoulders. Knee replacement and hip replacement sales made up more than two-thirds of the company's $7.6 billion in revenue in 2024, but have CAGRs of just 1.8% and 1% respectively since 2016. ...
In recent years, Zimmer Biomet focused on elevating its overall growth rate by investing in faster-growing orthopedic segments like sports medicine and shoulders. Knee replacement and hip replacement sales made up more than two-thirds of the company’s $7.6 billion in revenue in 2024, but have CAGRs of just 1.8% and 1% respectively since 2016.
Since 2020, foot and ankle emerged as a sizable market growing in the high-single-digits and ripe for consolidation. But Zimmer Biomet could never generate the same foot and ankle momentum as its peers. At the end of 2023, the company said foot and ankle sales made up just 4% of its S.E.T. category, or around $70 million.
Zimmer Biomet made a major move to contend in the foot and ankle space when it entered into a definitive agreement to purchase all outstanding shares of common stock of Paragon 28 for a total enterprise value of $1.2 billion. The transaction is expected to close in the first half of 2025. The deal, once closed, will boost Zimmer Biomet’s foot and ankle revenue to more than $320 million.
Our chart of the month shows Zimmer Biomet’s hip replacement sales compared to its overall S.E.T. sales from 2016 to our estimated 2025. S.E.T. sales for 2024 and 2025 are pro forma, inclusive of Paragon 28 estimated revenue.
Assuming the transaction closes, the company’s combined S.E.T. segment revenue will outsize its hip franchise and grow faster than both its knee and hip franchises. Paragon 28 moves Zimmer Biomet closer to its goals of mid-single-digit growth and category leadership in foot and ankle.
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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.
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