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Zimmer Biomet reported 4Q23 orthopedic sales of $1.9 billion, +6.3% compared to the fourth quarter of 2022. For the full year, the company generated $7.4 billion in orthopedic sales, representing growth of 6.5% compared to the prior year.
The company executed in the face of macro issues in the global markets, but expects those headwinds to dissipate in 2024. End markets are very healthy and could remain so for an extended period of time. According to Zimmer Biomet, the weighted average market growth rate grew from 3% to nearly 4%.
Internally, the company doubled the dollar value of its innovation pipeline compared to 2018, when it was mired in a turnaround. Zimmer Biomet commenced the full launch of its cementless knee in 2024. About 18% of its knee implants are cementless, well behind Stryker’s cementless penetration. However, Zimmer Biomet expects to reach 50% penetration or greater in a relatively short period of time. The company said that its cementless knees command a price uplift of around 15% and are often used with a ROSA robotic system, adding more revenue to the procedure.
This year will also bring a ROSA system for shoulder surgery, with the launch coming early enough to drive meaningful revenue in 2024. For the overall ROSA line, Zimmer Biomet expects 300 installations per year, 5% to 7% utilization growth annually and about one-third of all systems going into an ASC.
The S.E.T. franchises will benefit from over 40 new product launches over the next two years, which will give Zimmer Biomet the number one or two spot in those markets, all of which are growing mid-single-digits or better.
Overall, the future looks bright. The company expects 2024 reported growth between 4.5% and 5.5%.
“Our long-range plan will illustrate that this is not a one-year wonder,” said Zimmer Biomet CEO Ivan Tornos. “This is a multi-year commitment. Zimmer Biomet has truly entered our growth stage era. We’re no longer in turnaround mode.”
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $1,434.6 | $1,361.0 | $73.5 | 5.4% |
| Knees | $798.3 | $753.6 | $44.7 | 5.9% |
| Hips | $504.8 | $488.7 | $16.1 | 3.3% |
| Extremities | $131.5 | $118.7 | $12.7 | 10.7% |
| Trauma | $170.0 | $163.3 | $6.7 | 4.1% |
| Sports Medicine | $54.4 | $48.8 | $5.6 | 11.5% |
| Orthobiologics | $58.9 | $57.3 | $1.7 | 2.9% |
| Enabling Technology | $29.4 | $27.0 | $2.4 | 8.9% |
| Other | $192.8 | $167.8 | $25.1 | 14.9% |
| Total | $1,940.1 | $1,825.1 | $115.0 | 6.3% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $5,518.4 | $5,152.6 | $365.8 | 7.1% |
| Knees | $3,038.5 | $2,778.3 | $260.2 | 9.4% |
| Hips | $1,967.2 | $1,894.9 | $72.3 | 3.8% |
| Extremities | $512.7 | $479.4 | $33.3 | 6.9% |
| Trauma | $650.7 | $639.5 | $11.3 | 1.8% |
| Sports Medicine | $209.8 | $195.3 | $14.5 | 7.4% |
| Orthobiologics | $227.8 | $232.4 | ($4.6) | (2%) |
| Enabling Technology | $100.2 | $94.1 | $6.0 | 6.4% |
| Other | $687.4 | $626.0 | $61.4 | 9.8% |
| Total | $7,394.3 | $6,939.9 | $454.4 | 6.5% |
Orthopedic Sales by Geography
| Region | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,128.2 | $1,080.6 | $47.6 | 4.4% |
| OUS | $811.9 | $744.5 | $67.4 | 9.1% |
| EMEA | $462.8 | $416.9 | $45.9 | 11% |
| APAC | $349.1 | $327.6 | $21.5 | 6.6% |
| Total | $1,940.1 | $1,825.1 | $115.0 | 6.3% |
| Region | FY20 | FY19 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $4,288.9 | $4,012.4 | $276.5 | 6.9% |
| OUS | $3,105.4 | $2,927.5 | $177.9 | 6.1% |
| EMEA | $1,774.7 | $1,639.4 | $135.3 | 8.3% |
| APAC | $1,330.7 | $1,288.1 | $42.6 | 3.3% |
| Total | $7,394.3 | $6,939.9 | $454.4 | 6.5% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,940.1 | |
| Cost of Sales | $538.8 | 27.8% |
| Selling and Admin | $722.3 | 37.2% |
| R & D | $113.3 | 5.8% |
| Other | $146.5 | 7.6% |
| Net Earnings | $419.2 | 21.6% |
Zimmer Biomet reported 4Q23 orthopedic sales of $1.9 billion, +6.3% compared to the fourth quarter of 2022. For the full year, the company generated $7.4 billion in orthopedic sales, representing growth of 6.5% compared to the prior year.
The company executed in the face of macro issues in the global markets, but expects those headwinds to...
Zimmer Biomet reported 4Q23 orthopedic sales of $1.9 billion, +6.3% compared to the fourth quarter of 2022. For the full year, the company generated $7.4 billion in orthopedic sales, representing growth of 6.5% compared to the prior year.
The company executed in the face of macro issues in the global markets, but expects those headwinds to dissipate in 2024. End markets are very healthy and could remain so for an extended period of time. According to Zimmer Biomet, the weighted average market growth rate grew from 3% to nearly 4%.
Internally, the company doubled the dollar value of its innovation pipeline compared to 2018, when it was mired in a turnaround. Zimmer Biomet commenced the full launch of its cementless knee in 2024. About 18% of its knee implants are cementless, well behind Stryker’s cementless penetration. However, Zimmer Biomet expects to reach 50% penetration or greater in a relatively short period of time. The company said that its cementless knees command a price uplift of around 15% and are often used with a ROSA robotic system, adding more revenue to the procedure.
This year will also bring a ROSA system for shoulder surgery, with the launch coming early enough to drive meaningful revenue in 2024. For the overall ROSA line, Zimmer Biomet expects 300 installations per year, 5% to 7% utilization growth annually and about one-third of all systems going into an ASC.
The S.E.T. franchises will benefit from over 40 new product launches over the next two years, which will give Zimmer Biomet the number one or two spot in those markets, all of which are growing mid-single-digits or better.
Overall, the future looks bright. The company expects 2024 reported growth between 4.5% and 5.5%.
“Our long-range plan will illustrate that this is not a one-year wonder,” said Zimmer Biomet CEO Ivan Tornos. “This is a multi-year commitment. Zimmer Biomet has truly entered our growth stage era. We’re no longer in turnaround mode.”
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $1,434.6 | $1,361.0 | $73.5 | 5.4% |
| Knees | $798.3 | $753.6 | $44.7 | 5.9% |
| Hips | $504.8 | $488.7 | $16.1 | 3.3% |
| Extremities | $131.5 | $118.7 | $12.7 | 10.7% |
| Trauma | $170.0 | $163.3 | $6.7 | 4.1% |
| Sports Medicine | $54.4 | $48.8 | $5.6 | 11.5% |
| Orthobiologics | $58.9 | $57.3 | $1.7 | 2.9% |
| Enabling Technology | $29.4 | $27.0 | $2.4 | 8.9% |
| Other | $192.8 | $167.8 | $25.1 | 14.9% |
| Total | $1,940.1 | $1,825.1 | $115.0 | 6.3% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $5,518.4 | $5,152.6 | $365.8 | 7.1% |
| Knees | $3,038.5 | $2,778.3 | $260.2 | 9.4% |
| Hips | $1,967.2 | $1,894.9 | $72.3 | 3.8% |
| Extremities | $512.7 | $479.4 | $33.3 | 6.9% |
| Trauma | $650.7 | $639.5 | $11.3 | 1.8% |
| Sports Medicine | $209.8 | $195.3 | $14.5 | 7.4% |
| Orthobiologics | $227.8 | $232.4 | ($4.6) | (2%) |
| Enabling Technology | $100.2 | $94.1 | $6.0 | 6.4% |
| Other | $687.4 | $626.0 | $61.4 | 9.8% |
| Total | $7,394.3 | $6,939.9 | $454.4 | 6.5% |
Orthopedic Sales by Geography
| Region | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,128.2 | $1,080.6 | $47.6 | 4.4% |
| OUS | $811.9 | $744.5 | $67.4 | 9.1% |
| EMEA | $462.8 | $416.9 | $45.9 | 11% |
| APAC | $349.1 | $327.6 | $21.5 | 6.6% |
| Total | $1,940.1 | $1,825.1 | $115.0 | 6.3% |
| Region | FY20 | FY19 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $4,288.9 | $4,012.4 | $276.5 | 6.9% |
| OUS | $3,105.4 | $2,927.5 | $177.9 | 6.1% |
| EMEA | $1,774.7 | $1,639.4 | $135.3 | 8.3% |
| APAC | $1,330.7 | $1,288.1 | $42.6 | 3.3% |
| Total | $7,394.3 | $6,939.9 | $454.4 | 6.5% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,940.1 | |
| Cost of Sales | $538.8 | 27.8% |
| Selling and Admin | $722.3 | 37.2% |
| R & D | $113.3 | 5.8% |
| Other | $146.5 | 7.6% |
| Net Earnings | $419.2 | 21.6% |
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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.
