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Zimmer Biomet reported 1Q23 orthopedic sales of $1.8 billion, +10.1% compared to the first quarter of 2022.
Faster-than-expected recovery of elective procedures, easing of staffing-related headwinds and easier prior-year comps drove the outsized growth. Zimmer Biomet’s commercial teams also took advantage of the conditions to leverage the company’s new product introductions.
Zimmer Biomet launched more than 50 new products between 2018 and 2022, with the majority of those launches coming in markets growing 4% or faster. The company has another 40 planned launches in fast-growing segments between this year and 2025.
The joint replacement segment has run hot for the last few quarters due to transient factors, like easier comps and backlog capture. However, some aspects of the overperformance could be more sustainable.
“There’s a significant technology shift that’s occurring in orthopedics at a very rapid pace,” said Zimmer Biomet CEO Bryan Hanson. “That has a mix benefit associated with it. You don’t need one new patient. You just need that technology to come in. That lifts the overall market growth and creates better pricing stability. The combination of those two things, in my view, is durable and sustainable to elevate the overall recon market growth.”
Mr. Hanson also said that post-COVID patient behavior changes could bolster procedure volumes. Zimmer Biomet is analyzing the positive procedure volume impacts of technology advancement, the shift to ASCs and higher work-from-home rates.
The company’s torrid first quarter led to an increase in 2023 sales guidance. Zimmer Biomet now expects constant currency growth between 6% and 7% for the year.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,386.4 | $1,232.6 | $153.8 | 12.5% |
| Knees | $762.5 | $662.8 | $99.7 | 15% |
| Hips | $492.8 | $451.0 | $41.8 | 9.3% |
| Extremities | $131.1 | $118.8 | $12.3 | 10.4% |
| Trauma | $160.4 | $155.3 | $5.1 | 3.3% |
| Sports Medicine | $53.3 | $47.9 | $5.4 | 11.2% |
| Orthobiologics | $54.2 | $57.5 | ($3.3) | (5.8%) |
| Enabling Technology | $21.9 | $21.2 | $0.7 | 3.3% |
| Other | $154.8 | $148.7 | $6.2 | 4.1% |
| Total | $1,831.0 | $1,663.2 | $167.8 | 10.1% |
Orthopedic Sales by Geography
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,060.4 | $941.2 | $119.2 | 12.7% |
| OUS | $770.6 | $722.0 | $48.6 | 6.7% |
| EMEA | $443.1 | $404.3 | $38.8 | 9.6% |
| Asia Pacific | $327.5 | $317.7 | $9.8 | 3.1% |
| Total | $1,831.0 | $1,663.2 | $167.8 | 10.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,831.0 | |
| Cost of Sales | $500.8 | 27.4% |
| Selling and Admin | $715.9 | 39.1% |
| R & D | $110.4 | 6% |
| Other | $271.4 | 14.8% |
| Net Earnings | $232.5 | 12.7% |
Zimmer Biomet reported 1Q23 orthopedic sales of $1.8 billion, +10.1% compared to the first quarter of 2022.
Faster-than-expected recovery of elective procedures, easing of staffing-related headwinds and easier prior-year comps drove the outsized growth. Zimmer Biomet’s commercial teams also took advantage of the conditions to leverage the...
Zimmer Biomet reported 1Q23 orthopedic sales of $1.8 billion, +10.1% compared to the first quarter of 2022.
Faster-than-expected recovery of elective procedures, easing of staffing-related headwinds and easier prior-year comps drove the outsized growth. Zimmer Biomet’s commercial teams also took advantage of the conditions to leverage the company’s new product introductions.
Zimmer Biomet launched more than 50 new products between 2018 and 2022, with the majority of those launches coming in markets growing 4% or faster. The company has another 40 planned launches in fast-growing segments between this year and 2025.
The joint replacement segment has run hot for the last few quarters due to transient factors, like easier comps and backlog capture. However, some aspects of the overperformance could be more sustainable.
“There’s a significant technology shift that’s occurring in orthopedics at a very rapid pace,” said Zimmer Biomet CEO Bryan Hanson. “That has a mix benefit associated with it. You don’t need one new patient. You just need that technology to come in. That lifts the overall market growth and creates better pricing stability. The combination of those two things, in my view, is durable and sustainable to elevate the overall recon market growth.”
Mr. Hanson also said that post-COVID patient behavior changes could bolster procedure volumes. Zimmer Biomet is analyzing the positive procedure volume impacts of technology advancement, the shift to ASCs and higher work-from-home rates.
The company’s torrid first quarter led to an increase in 2023 sales guidance. Zimmer Biomet now expects constant currency growth between 6% and 7% for the year.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,386.4 | $1,232.6 | $153.8 | 12.5% |
| Knees | $762.5 | $662.8 | $99.7 | 15% |
| Hips | $492.8 | $451.0 | $41.8 | 9.3% |
| Extremities | $131.1 | $118.8 | $12.3 | 10.4% |
| Trauma | $160.4 | $155.3 | $5.1 | 3.3% |
| Sports Medicine | $53.3 | $47.9 | $5.4 | 11.2% |
| Orthobiologics | $54.2 | $57.5 | ($3.3) | (5.8%) |
| Enabling Technology | $21.9 | $21.2 | $0.7 | 3.3% |
| Other | $154.8 | $148.7 | $6.2 | 4.1% |
| Total | $1,831.0 | $1,663.2 | $167.8 | 10.1% |
Orthopedic Sales by Geography
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,060.4 | $941.2 | $119.2 | 12.7% |
| OUS | $770.6 | $722.0 | $48.6 | 6.7% |
| EMEA | $443.1 | $404.3 | $38.8 | 9.6% |
| Asia Pacific | $327.5 | $317.7 | $9.8 | 3.1% |
| Total | $1,831.0 | $1,663.2 | $167.8 | 10.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,831.0 | |
| Cost of Sales | $500.8 | 27.4% |
| Selling and Admin | $715.9 | 39.1% |
| R & D | $110.4 | 6% |
| Other | $271.4 | 14.8% |
| Net Earnings | $232.5 | 12.7% |
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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.
