Copy to clipboard 
Zimmer Biomet reported 2Q21 orthopedic revenue of $1,812.8 million, +64.6% vs. 2Q20. Compared to the second quarter of 2019, the company’s orthopedic revenue increased +1.3%. Given its performance through the first half and current COVID dynamics, Zimmer Biomet tightened its 2021 guidance to report growth in the range of +14.5% to +16.5% vs. 2020.
Gains in the sports medicine, extremities and CMF segments helped offset softness in large joint replacement. While volume recovery in large joint replacement procedures has improved compared to 2020 and early 2021, that market’s rebound is notably slow compared to others. Excluding the impact of ROSA sales, Zimmer Biomet’s knee franchise declined -5.6% this quarter compared to 2Q19.
While the joint replacement market’s slump certainly impacts all players, for Zimmer Biomet it is another in a long string of quarters in which it underperformed peers and the market average. As a reminder, the company’s active portfolio management strategy aims for above-market growth in segments where Zimmer Biomet has a “right to win.” Although company leadership espoused a philosophy of not overreacting to any one quarter, it is difficult to see a scenario in which Zimmer Biomet has been a meaningful share taker in recent years.
The company believes it will soon have the tools to turn its knee franchise around, however. In addition to already impressive traction for ROSA, Zimmer Biomet will soon launch its partial knee application. The company owns a significant share in the partial knee replacement market and ROSA’s entry there could open up new revenue streams. Additionally, Zimmer Biomet’s Persona iQ knee will be the “first and only” smart knee on the market at launch.
“Capital sales were much stronger in Q2. We saw a shift back to upfront sales of ROSA. More of those happened in Q2 than what we would typically see. That speaks to the strength of capital budgets and people’s desire to acquire in that way. There’s a real focus for hospitals on bringing in robotic systems for their ORs, whether they buy them outright or they get them through other arrangements. That demand is very real.” – Zimmer Biomet CEO Bryan Hanson
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
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,288.9 | $789.7 | $499.2 | 63.2% |
| Knees | $684.9 | $378.1 | $306.9 | 81.2% |
| Hips | $474.6 | $329.7 | $144.9 | 43.9% |
| Extremities | $129.4 | $82.0 | $47.4 | 57.9% |
| Spine | $111.0 | $63.4 | $47.6 | 75% |
| Trauma | $186.8 | $116.9 | $69.8 | 59.7% |
| Sports Medicine | $47.5 | $29.7 | $17.8 | 59.9% |
| Orthobiologics | $65.2 | $40.2 | $25.0 | 62.1% |
| Other (CMF) | $113.5 | $61.6 | $51.8 | 84.1% |
| Total | $1,812.8 | $1,101.6 | $711.2 | 64.6% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,479.8 | $1,960.2 | $519.6 | 26.5% |
| Knees | $1,311.5 | $1,009.2 | $302.3 | 30% |
| Hips | $921.6 | $762.3 | $159.3 | 20.9% |
| Extremities | $246.7 | $188.7 | $58.0 | 30.7% |
| Spine | $213.5 | $159.8 | $53.7 | 33.6% |
| Trauma | $353.6 | $267.2 | $86.4 | 32.3% |
| Sports Medicine | $90.5 | $68.7 | $21.7 | 31.6% |
| Orthobiologics | $129.4 | $99.6 | $29.8 | 29.9% |
| Other (CMF) | $211.0 | $157.4 | $53.6 | 34% |
| Total | $3,477.8 | $2,713.0 | $764.8 | 28.2% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,108.7 | $659.2 | $449.5 | 68.2% |
| OUS | $704.1 | $442.4 | $261.8 | 59.2% |
| EMEA | $384.4 | $196.5 | $187.9 | 95.6% |
| Asia Pacific | $319.7 | $245.9 | $73.8 | 30% |
| Total | $1,812.8 | $1,101.6 | $711.2 | 64.6% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,113.6 | $1,653.9 | $459.6 | 27.8% |
| OUS | $1,364.2 | $1,059.0 | $305.2 | 28.8% |
| EMEA | $730.7 | $556.2 | $174.5 | 31.4% |
| Asia Pacific | $633.6 | $502.9 | $130.7 | 26% |
| Total | $3,477.8 | $2,713.0 | $764.8 | 28.2% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,847.4 | |
| Cost of Sales | $581.6 | 31.5% |
| Selling and Admin | $817.4 | 44.2% |
| R & D | $180.5 | 9.8% |
| Other | $126.0 | 6.8% |
| Net Earnings | $141.9 | 7.7% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Zimmer Biomet reported 2Q21 orthopedic revenue of $1,812.8 million, +64.6% vs. 2Q20. Compared to the second quarter of 2019, the company's orthopedic revenue increased +1.3%. Given its performance through the first half and current COVID dynamics, Zimmer Biomet tightened its 2021 guidance to report growth in the range of +14.5% to +16.5% vs....
Zimmer Biomet reported 2Q21 orthopedic revenue of $1,812.8 million, +64.6% vs. 2Q20. Compared to the second quarter of 2019, the company’s orthopedic revenue increased +1.3%. Given its performance through the first half and current COVID dynamics, Zimmer Biomet tightened its 2021 guidance to report growth in the range of +14.5% to +16.5% vs. 2020.
Gains in the sports medicine, extremities and CMF segments helped offset softness in large joint replacement. While volume recovery in large joint replacement procedures has improved compared to 2020 and early 2021, that market’s rebound is notably slow compared to others. Excluding the impact of ROSA sales, Zimmer Biomet’s knee franchise declined -5.6% this quarter compared to 2Q19.
While the joint replacement market’s slump certainly impacts all players, for Zimmer Biomet it is another in a long string of quarters in which it underperformed peers and the market average. As a reminder, the company’s active portfolio management strategy aims for above-market growth in segments where Zimmer Biomet has a “right to win.” Although company leadership espoused a philosophy of not overreacting to any one quarter, it is difficult to see a scenario in which Zimmer Biomet has been a meaningful share taker in recent years.
The company believes it will soon have the tools to turn its knee franchise around, however. In addition to already impressive traction for ROSA, Zimmer Biomet will soon launch its partial knee application. The company owns a significant share in the partial knee replacement market and ROSA’s entry there could open up new revenue streams. Additionally, Zimmer Biomet’s Persona iQ knee will be the “first and only” smart knee on the market at launch.
“Capital sales were much stronger in Q2. We saw a shift back to upfront sales of ROSA. More of those happened in Q2 than what we would typically see. That speaks to the strength of capital budgets and people’s desire to acquire in that way. There’s a real focus for hospitals on bringing in robotic systems for their ORs, whether they buy them outright or they get them through other arrangements. That demand is very real.” – Zimmer Biomet CEO Bryan Hanson
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
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,288.9 | $789.7 | $499.2 | 63.2% |
| Knees | $684.9 | $378.1 | $306.9 | 81.2% |
| Hips | $474.6 | $329.7 | $144.9 | 43.9% |
| Extremities | $129.4 | $82.0 | $47.4 | 57.9% |
| Spine | $111.0 | $63.4 | $47.6 | 75% |
| Trauma | $186.8 | $116.9 | $69.8 | 59.7% |
| Sports Medicine | $47.5 | $29.7 | $17.8 | 59.9% |
| Orthobiologics | $65.2 | $40.2 | $25.0 | 62.1% |
| Other (CMF) | $113.5 | $61.6 | $51.8 | 84.1% |
| Total | $1,812.8 | $1,101.6 | $711.2 | 64.6% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,479.8 | $1,960.2 | $519.6 | 26.5% |
| Knees | $1,311.5 | $1,009.2 | $302.3 | 30% |
| Hips | $921.6 | $762.3 | $159.3 | 20.9% |
| Extremities | $246.7 | $188.7 | $58.0 | 30.7% |
| Spine | $213.5 | $159.8 | $53.7 | 33.6% |
| Trauma | $353.6 | $267.2 | $86.4 | 32.3% |
| Sports Medicine | $90.5 | $68.7 | $21.7 | 31.6% |
| Orthobiologics | $129.4 | $99.6 | $29.8 | 29.9% |
| Other (CMF) | $211.0 | $157.4 | $53.6 | 34% |
| Total | $3,477.8 | $2,713.0 | $764.8 | 28.2% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,108.7 | $659.2 | $449.5 | 68.2% |
| OUS | $704.1 | $442.4 | $261.8 | 59.2% |
| EMEA | $384.4 | $196.5 | $187.9 | 95.6% |
| Asia Pacific | $319.7 | $245.9 | $73.8 | 30% |
| Total | $1,812.8 | $1,101.6 | $711.2 | 64.6% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,113.6 | $1,653.9 | $459.6 | 27.8% |
| OUS | $1,364.2 | $1,059.0 | $305.2 | 28.8% |
| EMEA | $730.7 | $556.2 | $174.5 | 31.4% |
| Asia Pacific | $633.6 | $502.9 | $130.7 | 26% |
| Total | $3,477.8 | $2,713.0 | $764.8 | 28.2% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,847.4 | |
| Cost of Sales | $581.6 | 31.5% |
| Selling and Admin | $817.4 | 44.2% |
| R & D | $180.5 | 9.8% |
| Other | $126.0 | 6.8% |
| Net Earnings | $141.9 | 7.7% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
You’ve reached your limit.
We’re glad you’re finding value in our content — and we’d love for you to keep going.
Subscribe now for unlimited access to orthopedic business intelligence.
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.
