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Zimmer Biomet reported 4Q21 orthopedic sales of $1.83 billion, -3.3% vs. 4Q20, and full-year 2021 orthopedic sales of $7.06 billion, +10.6% vs. 2020.
The company expects to complete the spin-off of its spine and dental businesses on March 1, 2022. The move originally came as Zimmer Biomet’s first foray into active portfolio management during its transformation efforts, aimed at getting the company’s sustained growth rate into the mid-single digits.
However, that goal is temporarily off the table as the market deals with COVID and its attendant staffing and supply chain problems. Zimmer Biomet CEO Bryan Hanson said, “If we continue to see COVID pressure and staffing pressure at the rate that we’re seeing today, yes, it would be very challenging for the company to get to mid-single digits. When COVID gets behind us, we absolutely have the building blocks to get there.”
In addition to COVID and staffing pressures, Zimmer Biomet suffered from China’s national volume-based procurement policies. Last year, tenders for knee and hip replacement implants reduced prices by over 80%. China approved a new national tender on trauma products in late January 2021. Zimmer Biomet reported a $30 million headwind in the fourth quarter due to the new policy.
One of the positive building blocks to which Mr. Hanson referred is demand for the company’s ROSA robotic platform. Installed systems doubled in 2021 compared to installs at the end of 2020. Around 10% of Zimmer Biomet’s total knee procedures use ROSA. The Persona IQ smart knee implant, and a new form factor for Persona Cementless should also bolster sales in the back half of 2022.
Early in the pandemic, Zimmer Biomet’s leadership team was among the more optimistic in terms of market recovery. That changed in 2021. The company is assuming that the pressures of late 2021 will persist throughout 2022, perhaps with different timing on the peaks and valleys. Excluding spun-off businesses, Zimmer Biomet expects 2022 reported revenue growth in the range of -4% to flat.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 4Q21 | 4Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,343.1 | $1,363.9 | ($20.8) | (1.5%) |
| Knees | $743.3 | $737.9 | $5.4 | 0.7% |
| Hips | $484.8 | $504.2 | ($19.3) | (3.8%) |
| Extremities | $114.9 | $121.8 | ($6.8) | (5.6%) |
| Spine | $118.8 | $138.6 | ($19.8) | (14.3%) |
| Trauma | $162.4 | $173.7 | ($11.3) | (6.5%) |
| Sports Medicine | $41.3 | $44.1 | ($2.7) | (6.2%) |
| Orthobiologics | $59.9 | $67.6 | ($7.6) | (11.3%) |
| Other (CMF) | $108.5 | $108.9 | ($0.4) | (0.4%) |
| Total | $1,834.1 | $1,896.8 | ($62.7) | (3.3%) |
| FY21 | FY20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $5,067.6 | $4,581.0 | $486.6 | 10.6% |
| Knees | $2,720.2 | $2,403.2 | $317.0 | 13.2% |
| Hips | $1,863.2 | $1,750.6 | $112.6 | 6.4% |
| Extremities | $484.2 | $427.3 | $56.9 | 13.3% |
| Spine | $462.8 | $449.5 | $13.3 | 3% |
| Trauma | $689.1 | $607.6 | $81.5 | 13.4% |
| Sports Medicine | $175.9 | $155.1 | $20.8 | 13.4% |
| Orthobiologics | $254.0 | $235.1 | $18.9 | 8% |
| Other (CMF) | $419.8 | $362.8 | $57.0 | 15.7% |
| Total | $7,069.2 | $6,391.1 | $678.1 | 10.6% |
Orthopedic Sales by Geography
| 4Q21 | 4Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,138.6 | $1,167.9 | ($29.2) | (2.5%) |
| OUS | $695.5 | $729.0 | ($33.4) | (4.6%) |
| EMEA | $417.6 | $371.4 | $46.2 | 12.4% |
| Asia Pacific | $277.9 | $357.6 | ($79.6) | (22.3%) |
| Total | $1,834.1 | $1,896.8 | ($62.7) | (3.3%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $4,330.2 | $3,944.3 | $385.9 | 9.8% |
| OUS | $2,739.0 | $2,446.8 | $292.1 | 11.9% |
| EMEA | $1,507.4 | $1,266.0 | $241.5 | 19.1% |
| Asia Pacific | $1,231.5 | $1,180.9 | $50.6 | 4.3% |
| Total | $7,069.2 | $6,391.1 | $678.1 | 10.6% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $2,037.8 | |
| Cost of Sales | $661.5 | 32.5% |
| Selling and Admin | $934.0 | 45.8% |
| R & D | $113.4 | 5.6% |
| Other | $412.9 | 20.3% |
| Net Earnings | ($84.0) | (4.1%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Zimmer Biomet reported 4Q21 orthopedic sales of $1.83 billion, -3.3% vs. 4Q20, and full-year 2021 orthopedic sales of $7.06 billion, +10.6% vs. 2020.
The company expects to complete the spin-off of its spine and dental businesses on March 1, 2022. The move originally came as Zimmer Biomet's first foray into active portfolio management...
Zimmer Biomet reported 4Q21 orthopedic sales of $1.83 billion, -3.3% vs. 4Q20, and full-year 2021 orthopedic sales of $7.06 billion, +10.6% vs. 2020.
The company expects to complete the spin-off of its spine and dental businesses on March 1, 2022. The move originally came as Zimmer Biomet’s first foray into active portfolio management during its transformation efforts, aimed at getting the company’s sustained growth rate into the mid-single digits.
However, that goal is temporarily off the table as the market deals with COVID and its attendant staffing and supply chain problems. Zimmer Biomet CEO Bryan Hanson said, “If we continue to see COVID pressure and staffing pressure at the rate that we’re seeing today, yes, it would be very challenging for the company to get to mid-single digits. When COVID gets behind us, we absolutely have the building blocks to get there.”
In addition to COVID and staffing pressures, Zimmer Biomet suffered from China’s national volume-based procurement policies. Last year, tenders for knee and hip replacement implants reduced prices by over 80%. China approved a new national tender on trauma products in late January 2021. Zimmer Biomet reported a $30 million headwind in the fourth quarter due to the new policy.
One of the positive building blocks to which Mr. Hanson referred is demand for the company’s ROSA robotic platform. Installed systems doubled in 2021 compared to installs at the end of 2020. Around 10% of Zimmer Biomet’s total knee procedures use ROSA. The Persona IQ smart knee implant, and a new form factor for Persona Cementless should also bolster sales in the back half of 2022.
Early in the pandemic, Zimmer Biomet’s leadership team was among the more optimistic in terms of market recovery. That changed in 2021. The company is assuming that the pressures of late 2021 will persist throughout 2022, perhaps with different timing on the peaks and valleys. Excluding spun-off businesses, Zimmer Biomet expects 2022 reported revenue growth in the range of -4% to flat.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 4Q21 | 4Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,343.1 | $1,363.9 | ($20.8) | (1.5%) |
| Knees | $743.3 | $737.9 | $5.4 | 0.7% |
| Hips | $484.8 | $504.2 | ($19.3) | (3.8%) |
| Extremities | $114.9 | $121.8 | ($6.8) | (5.6%) |
| Spine | $118.8 | $138.6 | ($19.8) | (14.3%) |
| Trauma | $162.4 | $173.7 | ($11.3) | (6.5%) |
| Sports Medicine | $41.3 | $44.1 | ($2.7) | (6.2%) |
| Orthobiologics | $59.9 | $67.6 | ($7.6) | (11.3%) |
| Other (CMF) | $108.5 | $108.9 | ($0.4) | (0.4%) |
| Total | $1,834.1 | $1,896.8 | ($62.7) | (3.3%) |
| FY21 | FY20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $5,067.6 | $4,581.0 | $486.6 | 10.6% |
| Knees | $2,720.2 | $2,403.2 | $317.0 | 13.2% |
| Hips | $1,863.2 | $1,750.6 | $112.6 | 6.4% |
| Extremities | $484.2 | $427.3 | $56.9 | 13.3% |
| Spine | $462.8 | $449.5 | $13.3 | 3% |
| Trauma | $689.1 | $607.6 | $81.5 | 13.4% |
| Sports Medicine | $175.9 | $155.1 | $20.8 | 13.4% |
| Orthobiologics | $254.0 | $235.1 | $18.9 | 8% |
| Other (CMF) | $419.8 | $362.8 | $57.0 | 15.7% |
| Total | $7,069.2 | $6,391.1 | $678.1 | 10.6% |
Orthopedic Sales by Geography
| 4Q21 | 4Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,138.6 | $1,167.9 | ($29.2) | (2.5%) |
| OUS | $695.5 | $729.0 | ($33.4) | (4.6%) |
| EMEA | $417.6 | $371.4 | $46.2 | 12.4% |
| Asia Pacific | $277.9 | $357.6 | ($79.6) | (22.3%) |
| Total | $1,834.1 | $1,896.8 | ($62.7) | (3.3%) |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $4,330.2 | $3,944.3 | $385.9 | 9.8% |
| OUS | $2,739.0 | $2,446.8 | $292.1 | 11.9% |
| EMEA | $1,507.4 | $1,266.0 | $241.5 | 19.1% |
| Asia Pacific | $1,231.5 | $1,180.9 | $50.6 | 4.3% |
| Total | $7,069.2 | $6,391.1 | $678.1 | 10.6% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $2,037.8 | |
| Cost of Sales | $661.5 | 32.5% |
| Selling and Admin | $934.0 | 45.8% |
| R & D | $113.4 | 5.6% |
| Other | $412.9 | 20.3% |
| Net Earnings | ($84.0) | (4.1%) |
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.
