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Zimmer Biomet reported 3Q22 orthopedic sales of $1.66 billion, -0.9% compared to the third quarter of 2021. At constant currency, the company grew 5% for the quarter.
Elective procedure volumes rebounded and drove a strong performance for the company’s knee and hip businesses. Those gains were offset by tough comparisons in other business lines, volume-based procurement in China and a higher percentage of ROSA placements vs. capital sales.
Company leadership expects a modest step up in growth for the fourth quarter and provided increased 2022 guidance of reported growth between 0% and 1%.
Zimmer Biomet previously targeted at least 4% growth in an undisturbed market. Company CEO Bryan Hanson said that 2023 will not be an undisturbed market, but there still could be a path to the growth floor. He said, “There are three major things that I look at that give me confidence. Number one is the innovation flywheel here at ZB. It’s creating a solid pipeline that is moving our Vitality Index north. Second, the team is executing. Third, our weighted average market growth is moving north through very disciplined portfolio decisions.”
If the company opts to divest another of its slower-growing businesses, it may look to its foot and ankle or restorative therapies lines. Those categories have traditionally had fewer resources allocated to them by Zimmer Biomet relative to areas like large joints, upper extremities and sports medicine.
As the company strengthens its financial position, it may use acquisitions to accelerate the achievement of its growth goals. Hanson said the company will prioritize areas like data and robotics. Zimmer Biomet may also diversify its portfolio with assets outside of orthopedics.
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
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,262.7 | $1,244.8 | $17.9 | 1.4% |
| Knees | $673.2 | $665.4 | $7.8 | 1.2% |
| Hips | $470.7 | $456.8 | $13.9 | 3% |
| Extremities | $118.7 | $122.5 | ($3.8) | (3.1%) |
| Trauma | $151.5 | $164.1 | ($12.6) | (7.7%) |
| Sports Medicine | $45.0 | $43.8 | $1.3 | 2.9% |
| Orthobiologics | $57.3 | $61.3 | ($3.9) | (6.4%) |
| Other | $153.3 | $171.5 | ($18.2) | (10.6%) |
| Total | $1,669.8 | $1,685.4 | ($15.6) | (0.9%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3,849.9 | $3,717.4 | $132.5 | 3.6% |
| Knees | $2,071.4 | $1,976.9 | $94.5 | 4.8% |
| Hips | $1,413.8 | $1,378.3 | $35.4 | 2.6% |
| Extremities | $364.7 | $362.1 | $2.6 | 0.7% |
| Trauma | $474.1 | $500.7 | ($26.6) | (5.3%) |
| Sports Medicine | $142.1 | $138.4 | $3.6 | 2.6% |
| Orthobiologics | $175.1 | $180.0 | ($4.9) | (2.7%) |
| Other | $473.6 | $513.6 | ($40.0) | (7.8%) |
| Total | $5,114.8 | $5,050.1 | $64.7 | 1.3% |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $973.0 | $942.6 | $30.4 | 3.2% |
| OUS | $696.8 | $742.8 | ($46.0) | (6.2%) |
| EMEA | $355.4 | $371.4 | ($16.0) | (4.3%) |
| Asia Pacific | $299.6 | $326.8 | ($27.2) | (8.3%) |
| Rest of World | $41.8 | $44.6 | ($2.8) | (6.2%) |
| Total | $1,669.8 | $1,685.4 | ($15.6) | (0.9%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,931.8 | $2,835.9 | $95.9 | 3.4% |
| OUS | $2,183.0 | $2,214.2 | ($31.2) | (1.4%) |
| EMEA | $1,113.1 | $1,107.1 | $6.0 | 0.5% |
| Asia Pacific | $936.8 | $974.2 | ($37.4) | (3.8%) |
| Rest of World | $133.1 | $132.9 | $0.2 | 0.2% |
| Total | $5,114.8 | $5,050.1 | $64.7 | 1.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,669.8 | |
| Cost of Sales | $488.2 | 29.2% |
| Selling and Admin | $654.9 | 39.2% |
| R & D | $101.7 | 6.1% |
| Other | $231.0 | 13.8% |
| Net Earnings | $194.0 | 11.6% |
Zimmer Biomet reported 3Q22 orthopedic sales of $1.66 billion, -0.9% compared to the third quarter of 2021. At constant currency, the company grew 5% for the quarter.
Elective procedure volumes rebounded and drove a strong performance for the company's knee and hip businesses. Those gains were offset by tough comparisons in other business...
Zimmer Biomet reported 3Q22 orthopedic sales of $1.66 billion, -0.9% compared to the third quarter of 2021. At constant currency, the company grew 5% for the quarter.
Elective procedure volumes rebounded and drove a strong performance for the company’s knee and hip businesses. Those gains were offset by tough comparisons in other business lines, volume-based procurement in China and a higher percentage of ROSA placements vs. capital sales.
Company leadership expects a modest step up in growth for the fourth quarter and provided increased 2022 guidance of reported growth between 0% and 1%.
Zimmer Biomet previously targeted at least 4% growth in an undisturbed market. Company CEO Bryan Hanson said that 2023 will not be an undisturbed market, but there still could be a path to the growth floor. He said, “There are three major things that I look at that give me confidence. Number one is the innovation flywheel here at ZB. It’s creating a solid pipeline that is moving our Vitality Index north. Second, the team is executing. Third, our weighted average market growth is moving north through very disciplined portfolio decisions.”
If the company opts to divest another of its slower-growing businesses, it may look to its foot and ankle or restorative therapies lines. Those categories have traditionally had fewer resources allocated to them by Zimmer Biomet relative to areas like large joints, upper extremities and sports medicine.
As the company strengthens its financial position, it may use acquisitions to accelerate the achievement of its growth goals. Hanson said the company will prioritize areas like data and robotics. Zimmer Biomet may also diversify its portfolio with assets outside of orthopedics.
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
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,262.7 | $1,244.8 | $17.9 | 1.4% |
| Knees | $673.2 | $665.4 | $7.8 | 1.2% |
| Hips | $470.7 | $456.8 | $13.9 | 3% |
| Extremities | $118.7 | $122.5 | ($3.8) | (3.1%) |
| Trauma | $151.5 | $164.1 | ($12.6) | (7.7%) |
| Sports Medicine | $45.0 | $43.8 | $1.3 | 2.9% |
| Orthobiologics | $57.3 | $61.3 | ($3.9) | (6.4%) |
| Other | $153.3 | $171.5 | ($18.2) | (10.6%) |
| Total | $1,669.8 | $1,685.4 | ($15.6) | (0.9%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3,849.9 | $3,717.4 | $132.5 | 3.6% |
| Knees | $2,071.4 | $1,976.9 | $94.5 | 4.8% |
| Hips | $1,413.8 | $1,378.3 | $35.4 | 2.6% |
| Extremities | $364.7 | $362.1 | $2.6 | 0.7% |
| Trauma | $474.1 | $500.7 | ($26.6) | (5.3%) |
| Sports Medicine | $142.1 | $138.4 | $3.6 | 2.6% |
| Orthobiologics | $175.1 | $180.0 | ($4.9) | (2.7%) |
| Other | $473.6 | $513.6 | ($40.0) | (7.8%) |
| Total | $5,114.8 | $5,050.1 | $64.7 | 1.3% |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $973.0 | $942.6 | $30.4 | 3.2% |
| OUS | $696.8 | $742.8 | ($46.0) | (6.2%) |
| EMEA | $355.4 | $371.4 | ($16.0) | (4.3%) |
| Asia Pacific | $299.6 | $326.8 | ($27.2) | (8.3%) |
| Rest of World | $41.8 | $44.6 | ($2.8) | (6.2%) |
| Total | $1,669.8 | $1,685.4 | ($15.6) | (0.9%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,931.8 | $2,835.9 | $95.9 | 3.4% |
| OUS | $2,183.0 | $2,214.2 | ($31.2) | (1.4%) |
| EMEA | $1,113.1 | $1,107.1 | $6.0 | 0.5% |
| Asia Pacific | $936.8 | $974.2 | ($37.4) | (3.8%) |
| Rest of World | $133.1 | $132.9 | $0.2 | 0.2% |
| Total | $5,114.8 | $5,050.1 | $64.7 | 1.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,669.8 | |
| Cost of Sales | $488.2 | 29.2% |
| Selling and Admin | $654.9 | 39.2% |
| R & D | $101.7 | 6.1% |
| Other | $231.0 | 13.8% |
| Net Earnings | $194.0 | 11.6% |
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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.
