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ORTHOWORLD estimates Zimmer Biomet 2Q17 orthopaedic revenue of US $1,816.0MM, +2.6% from 2Q16, and 1H17 revenue of $3,652.1MM, +3.7% vs. 1H16. Estimated segment sales and growth follow.
| 2Q17 | 2Q16 | $ Change | % Change | |
| Joint Reconstruction | $1,250.0 | $1,273.5 | -$23.5 | -1.8% |
| Knee | $680.4 | $696.9 | -$16.5 | -2.4% |
| Hip | $469.8 | $477.2 | -$7.4 | -1.6% |
| Extremities | $99.8 | $99.4 | $0.4 | 0.4% |
| Spine | $102.4 | $73.5 | $28.9 | 39.4% |
| Trauma | $140.1 | $134.6 | $5.5 | 4.1% |
| Arthroscopy/Soft Tissue | $32.6 | $31.2 | $1.4 | 4.6% |
| Orthobiologics | $74.5 | $70.8 | $3.6 | 5.1% |
| Other* | $216.4 | $186.9 | $29.6 | 15.8% |
| Total | $1,816.0 | $1,770.5 | $45.6 | 2.6% |
| 1H17 | 1H16 | $ Change | % Change | |
| Joint Reconstruction | $2,529.9 | $2,541.4 | -$11.5 | -0.5% |
| Knee | $1,382.2 | $1,400.2 | -$18.0 | -1.3% |
| Hip | $945.5 | $945.1 | $0.4 | 0.0% |
| Extremities | $202.2 | $196.1 | $6.2 | 3.2% |
| Spine | $200.1 | $144.2 | $55.9 | 38.8% |
| Trauma | $278.6 | $265.0 | $13.6 | 5.1% |
| Arthroscopy/Soft Tissue | $64.0 | $61.3 | $2.7 | 4.3% |
| Orthobiologics | $147.9 | $140.8 | $7.1 | 5.0% |
| Other* | $431.6 | $368.4 | $63.2 | 17.2% |
| Total | $3,652.1 | $3,521.0 | $131.1 | 3.7% |
*Contains CMF, Bone Healing, Forgings, Accelero
2Q17 geographic growth for knees and hips:
- Knees: Americas $406.0MM, -2.7%; EMEA $159.0MM, -5.3%; Asia Pacific $115.0MM, +3.4%
- Hips: Americas $245.0MM, -1.4%; EMEA $131.0MM, -5.7%; Asia Pacific $94.0MM, +4.4%
Performance highlights:
- Per leadership, excluding ~240 basis points of contribution from LDR, 2Q17 revenue (including non-ortho) fell -1.3% vs. 2Q16
- Sales continue to show impact of production delays, slow business recapture from U.S. customers due to supply constraints
- Delivered highest quarterly output on record from Warsaw North Campus (WNC) manufacturing facility; some brands back to full production, but others still constrained due to complex validations (e.g. material types, production processes) and quality control of sourcing
- To recap, WNC supply constraints impact hips, knees, shoulders; also include legacy Biomet sports medicine, extremities/upper extremities and certain trauma products
- WNC brand backorders and safety stock build should be cleared and restored by year-end
- Noted that some surgeons are waiting to return business once the full product offering is available, with a sustained flow of supply
- Commenced EU launch of X-PSI surgical planning guides that replace MRI and CT scans with standard x-ray technology
- Completed limited launch of Persona Partial Knee to positive feedback; full launch slated for 3Q
- 2H18 initial launch planned for Persona TM Tibia cementless knee, Persona revision knee
- Strong demand remains for G7 Acetabular cup, Taperloc Complete Hip, Arcos Modular Femoral Revision (offset by supply shortfalls)
- Received FDA 510(k) clearance for technology acquired from Clinical Graphics in 2016: 3D range-of-motion simulation software
- Other growth drivers included Gel-One viscosupplement, Quattro Link knotless anchor, Subchondroplasty, the A.L.P.S. plate, Mobi-C cervical disc, CMF and thoracic products
- LDR commercial integration now complete; non-Mobi-C portion of the portfolio was more challenged during integration
- Continuing to prioritize R&D spend on knees, total knee robotic application, Signature Solutions
- Continuing to add specialized sales reps for sportsmed, extremities, trauma; core U.S. recon salesforce described as stable
- Secured executive search firm to evaluate external CEO candidates
- Revised full-year whole-company revenue guidance to range of $7.8BB-$7.87BB (previously $7.83BB-$7.91BB)
Sources: Zimmer Biomet, Inc.; ORTHOWORLD estimates
ORTHOWORLD estimates Zimmer Biomet 2Q17 orthopaedic revenue of US $1,816.0MM, +2.6% from 2Q16, and 1H17 revenue of $3,652.1MM, +3.7% vs. 1H16. Estimated segment sales and growth follow.
Q17
Q16
$ Change
% Change
Joint...
ORTHOWORLD estimates Zimmer Biomet 2Q17 orthopaedic revenue of US $1,816.0MM, +2.6% from 2Q16, and 1H17 revenue of $3,652.1MM, +3.7% vs. 1H16. Estimated segment sales and growth follow.
| 2Q17 | 2Q16 | $ Change | % Change | |
| Joint Reconstruction | $1,250.0 | $1,273.5 | -$23.5 | -1.8% |
| Knee | $680.4 | $696.9 | -$16.5 | -2.4% |
| Hip | $469.8 | $477.2 | -$7.4 | -1.6% |
| Extremities | $99.8 | $99.4 | $0.4 | 0.4% |
| Spine | $102.4 | $73.5 | $28.9 | 39.4% |
| Trauma | $140.1 | $134.6 | $5.5 | 4.1% |
| Arthroscopy/Soft Tissue | $32.6 | $31.2 | $1.4 | 4.6% |
| Orthobiologics | $74.5 | $70.8 | $3.6 | 5.1% |
| Other* | $216.4 | $186.9 | $29.6 | 15.8% |
| Total | $1,816.0 | $1,770.5 | $45.6 | 2.6% |
| 1H17 | 1H16 | $ Change | % Change | |
| Joint Reconstruction | $2,529.9 | $2,541.4 | -$11.5 | -0.5% |
| Knee | $1,382.2 | $1,400.2 | -$18.0 | -1.3% |
| Hip | $945.5 | $945.1 | $0.4 | 0.0% |
| Extremities | $202.2 | $196.1 | $6.2 | 3.2% |
| Spine | $200.1 | $144.2 | $55.9 | 38.8% |
| Trauma | $278.6 | $265.0 | $13.6 | 5.1% |
| Arthroscopy/Soft Tissue | $64.0 | $61.3 | $2.7 | 4.3% |
| Orthobiologics | $147.9 | $140.8 | $7.1 | 5.0% |
| Other* | $431.6 | $368.4 | $63.2 | 17.2% |
| Total | $3,652.1 | $3,521.0 | $131.1 | 3.7% |
*Contains CMF, Bone Healing, Forgings, Accelero
2Q17 geographic growth for knees and hips:
- Knees: Americas $406.0MM, -2.7%; EMEA $159.0MM, -5.3%; Asia Pacific $115.0MM, +3.4%
- Hips: Americas $245.0MM, -1.4%; EMEA $131.0MM, -5.7%; Asia Pacific $94.0MM, +4.4%
Performance highlights:
- Per leadership, excluding ~240 basis points of contribution from LDR, 2Q17 revenue (including non-ortho) fell -1.3% vs. 2Q16
- Sales continue to show impact of production delays, slow business recapture from U.S. customers due to supply constraints
- Delivered highest quarterly output on record from Warsaw North Campus (WNC) manufacturing facility; some brands back to full production, but others still constrained due to complex validations (e.g. material types, production processes) and quality control of sourcing
- To recap, WNC supply constraints impact hips, knees, shoulders; also include legacy Biomet sports medicine, extremities/upper extremities and certain trauma products
- WNC brand backorders and safety stock build should be cleared and restored by year-end
- Noted that some surgeons are waiting to return business once the full product offering is available, with a sustained flow of supply
- Commenced EU launch of X-PSI surgical planning guides that replace MRI and CT scans with standard x-ray technology
- Completed limited launch of Persona Partial Knee to positive feedback; full launch slated for 3Q
- 2H18 initial launch planned for Persona TM Tibia cementless knee, Persona revision knee
- Strong demand remains for G7 Acetabular cup, Taperloc Complete Hip, Arcos Modular Femoral Revision (offset by supply shortfalls)
- Received FDA 510(k) clearance for technology acquired from Clinical Graphics in 2016: 3D range-of-motion simulation software
- Other growth drivers included Gel-One viscosupplement, Quattro Link knotless anchor, Subchondroplasty, the A.L.P.S. plate, Mobi-C cervical disc, CMF and thoracic products
- LDR commercial integration now complete; non-Mobi-C portion of the portfolio was more challenged during integration
- Continuing to prioritize R&D spend on knees, total knee robotic application, Signature Solutions
- Continuing to add specialized sales reps for sportsmed, extremities, trauma; core U.S. recon salesforce described as stable
- Secured executive search firm to evaluate external CEO candidates
- Revised full-year whole-company revenue guidance to range of $7.8BB-$7.87BB (previously $7.83BB-$7.91BB)
Sources: Zimmer Biomet, Inc.; ORTHOWORLD estimates
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
