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Zimmer Biomet reported 1Q19 orthopedic revenue of USD $1,759.4MM, -2.2% vs. 1Q18.
Performance Notes
- Short-term company priorities: supply recovery, increasing supply efficiency, quality remediation, new product launches and optimizing talent structure
- Remain on track to deliver 2% to 3% growth in 2020
- Expect revenue growth to accelerate in 2H19 due to new products
- Company expects 2019 general orthopedic volume to be very close to 2018
ROSA Updates
- Zimmer Biomet generated over 2,000 leads at AAOS (up from just over 100 a year ago), with a “decent portion” of those leads focused on ROSA
- Early feedback in ROSA total knee limited launch is that the system quickly allows surgeons to achieve “time neutrality” in their procedure flow
- Company will be flexible in ways for customers to acquire a unit, but will prioritize getting units into “platinum” high-volume accounts penetrated by Stryker’s Mako
ORTHOWOLRD estimates segment values and growth on an as-reported basis as follows ($MM).
| 1Q19 | 1Q18 | $ Chg | % Chg | |
| Joint Replacement | $1,282.3 | $1,311.9 | -$29.6 | -2.3% |
| Knees | $694.1 | $713.3 | -$19.2 | -2.7% |
| Hips | $484.2 | $492.0 | -$7.8 | -1.6% |
| Extremities | $104.0 | $106.6 | -$2.6 | -2.4% |
| Spine | $105.6 | $110.5 | -$4.9 | -4.4% |
| Trauma | $145.8 | $146.0 | -$0.3 | -0.2% |
| Sports Medicine | $34.3 | $33.5 | $0.8 | 2.3% |
| Orthobiologics | $70.4 | $72.0 | -$1.6 | -2.2% |
| Other * | $121.1 | $125.9 | -$4.8 | -3.8% |
| Total | $1,759.4 | $1,799.9 | -$40.4 | -2.2% |
* CMF, Bone Healing, Forgings, Accelero
Estimated orthopedic revenue by geographic region is as follows ($MM).
| Geographic Region | 1Q19 | 1Q18 | $ Chg | % Chg |
| US | $1,010.7 | $1,023.7 | -$13.0 | -1.3% |
| Ex-US | $748.7 | $776.1 | -$27.4 | -3.5% |
| EMEA | $413.2 | $442.9 | -$29.8 | -6.7% |
| Asia Pacific | $282.8 | $279.2 | $3.6 | 1.3% |
| Other | $52.8 | $54.0 | -$1.2 | -2.2% |
| Total | $1,759.4 | $1,799.9 | -$40.4 | -2.2% |
Net earnings, inclusive for all Zimmer Biomet revenue, is as follows.
| 1Q19 | Amount ($MM) | % of Sales |
| Sales | $1,975.5 | |
| Cost of Sales | -$553.4 | 28.0% |
| Selling and Admin | -$796.4 | 40.3% |
| R & D | -$101.7 | 5.1% |
| Other | -$277.8 | 14.1% |
| Net Earnings | $246.2 | 12.5% |
Sources: Zimmer Biomet; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Zimmer Biomet reported 1Q19 orthopedic revenue of USD $1,759.4MM, -2.2% vs. 1Q18.
Performance Notes
Short-term company priorities: supply recovery, increasing supply efficiency, quality remediation, new product launches and optimizing talent structure
Remain on track to deliver 2% to 3% growth in 2020
Expect revenue growth...
Zimmer Biomet reported 1Q19 orthopedic revenue of USD $1,759.4MM, -2.2% vs. 1Q18.
Performance Notes
- Short-term company priorities: supply recovery, increasing supply efficiency, quality remediation, new product launches and optimizing talent structure
- Remain on track to deliver 2% to 3% growth in 2020
- Expect revenue growth to accelerate in 2H19 due to new products
- Company expects 2019 general orthopedic volume to be very close to 2018
ROSA Updates
- Zimmer Biomet generated over 2,000 leads at AAOS (up from just over 100 a year ago), with a “decent portion” of those leads focused on ROSA
- Early feedback in ROSA total knee limited launch is that the system quickly allows surgeons to achieve “time neutrality” in their procedure flow
- Company will be flexible in ways for customers to acquire a unit, but will prioritize getting units into “platinum” high-volume accounts penetrated by Stryker’s Mako
ORTHOWOLRD estimates segment values and growth on an as-reported basis as follows ($MM).
| 1Q19 | 1Q18 | $ Chg | % Chg | |
| Joint Replacement | $1,282.3 | $1,311.9 | -$29.6 | -2.3% |
| Knees | $694.1 | $713.3 | -$19.2 | -2.7% |
| Hips | $484.2 | $492.0 | -$7.8 | -1.6% |
| Extremities | $104.0 | $106.6 | -$2.6 | -2.4% |
| Spine | $105.6 | $110.5 | -$4.9 | -4.4% |
| Trauma | $145.8 | $146.0 | -$0.3 | -0.2% |
| Sports Medicine | $34.3 | $33.5 | $0.8 | 2.3% |
| Orthobiologics | $70.4 | $72.0 | -$1.6 | -2.2% |
| Other * | $121.1 | $125.9 | -$4.8 | -3.8% |
| Total | $1,759.4 | $1,799.9 | -$40.4 | -2.2% |
* CMF, Bone Healing, Forgings, Accelero
Estimated orthopedic revenue by geographic region is as follows ($MM).
| Geographic Region | 1Q19 | 1Q18 | $ Chg | % Chg |
| US | $1,010.7 | $1,023.7 | -$13.0 | -1.3% |
| Ex-US | $748.7 | $776.1 | -$27.4 | -3.5% |
| EMEA | $413.2 | $442.9 | -$29.8 | -6.7% |
| Asia Pacific | $282.8 | $279.2 | $3.6 | 1.3% |
| Other | $52.8 | $54.0 | -$1.2 | -2.2% |
| Total | $1,759.4 | $1,799.9 | -$40.4 | -2.2% |
Net earnings, inclusive for all Zimmer Biomet revenue, is as follows.
| 1Q19 | Amount ($MM) | % of Sales |
| Sales | $1,975.5 | |
| Cost of Sales | -$553.4 | 28.0% |
| Selling and Admin | -$796.4 | 40.3% |
| R & D | -$101.7 | 5.1% |
| Other | -$277.8 | 14.1% |
| Net Earnings | $246.2 | 12.5% |
Sources: Zimmer Biomet; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. 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.
