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ZimVie reported 2Q23 orthopedic sales of $106.2 million, -7.8% compared to the second quarter of 2022. The company generated $211.2 million in orthopedic sales for the first half of 2023, -7.9% compared to the prior year period.
The decrease was due to a highly competitive market in core spine and ZimVie’s decision to leave the Chinese market last year, an impact of $2.7 million for the quarter. Offsetting those losses, $3.8 million in sales previously attributed to Zimmer Biomet are now ZimVie’s.
The company remains focused on driving innovation to recapture business. It found success with both the Mobi-C artificial disc and Tether device in international markets. Mobi-C received French government reimbursement, which set the stage for accelerating sales throughout Europe. Zimmer Biomet CEO Vafa Jamali noted that Europe has been historically underpenetrated and under-adopted for cervical disc replacements. The company also expanded its international presence for Tether in Europe and Asia-Pacific.
The company also advanced its partnership with Brainlab to address its gap in enabling technologies. “The space is very competitive,” said Mr. Jamali. “We are addressing the areas of concern. One was enabling technologies and how you compete there against others that have enabling technologies. With Brainlab, I think we’re securing a good place there with a very state-of-the-art technology platform added to our devices, which I think are going to be a great match.”
Previously, ZimVie expected its 2023 sales to decline in the teens. However, the company offered revised guidance with its spine business declining in the high single digits or low double digits.
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
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $80.7 | $88.7 | ($8.0) | (9%) |
| Orthobiologics | $15.9 | $17.3 | ($1.3) | (7.8%) |
| Enabling Technology | $1.9 | $1.8 | $0.1 | 3.7% |
| Other (Bone Healing) | $7.6 | $7.4 | $0.3 | 3.7% |
| Total | $106.2 | $115.2 | ($9.0) | (7.8%) |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $162.6 | $178.9 | ($16.3) | (9.1%) |
| Orthobiologics | $31.2 | $33.3 | ($2.1) | (6.3%) |
| Enabling Technology | $3.8 | $3.7 | $0.1 | 3.6% |
| Other (Bone Healing) | $13.6 | $13.5 | $0.1 | 0.7% |
| Total | $211.2 | $229.3 | ($18.2) | (7.9%) |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $84.5 | $92.8 | ($8.3) | (9%) |
| OUS | $21.7 | $22.4 | ($0.6) | (2.9%) |
| Total | $106.2 | $115.2 | ($9.0) | (7.8%) |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $167.5 | $179.4 | ($11.9) | (6.6%) |
| OUS | $43.6 | $49.9 | ($6.3) | (12.6%) |
| Total | $211.2 | $229.3 | ($18.2) | (7.9%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $224.9 | |
| Cost of Sales | $74.5 | 33.1% |
| Selling and Admin | $128.5 | 57.1% |
| R & D | $13.2 | 5.9% |
| Other | $32.1 | 14.3% |
| Net Earnings | ($23.4) | (10.4%) |
ZimVie reported 2Q23 orthopedic sales of $106.2 million, -7.8% compared to the second quarter of 2022. The company generated $211.2 million in orthopedic sales for the first half of 2023, -7.9% compared to the prior year period.
The decrease was due to a highly competitive market in core spine and ZimVie's decision to leave the Chinese...
ZimVie reported 2Q23 orthopedic sales of $106.2 million, -7.8% compared to the second quarter of 2022. The company generated $211.2 million in orthopedic sales for the first half of 2023, -7.9% compared to the prior year period.
The decrease was due to a highly competitive market in core spine and ZimVie’s decision to leave the Chinese market last year, an impact of $2.7 million for the quarter. Offsetting those losses, $3.8 million in sales previously attributed to Zimmer Biomet are now ZimVie’s.
The company remains focused on driving innovation to recapture business. It found success with both the Mobi-C artificial disc and Tether device in international markets. Mobi-C received French government reimbursement, which set the stage for accelerating sales throughout Europe. Zimmer Biomet CEO Vafa Jamali noted that Europe has been historically underpenetrated and under-adopted for cervical disc replacements. The company also expanded its international presence for Tether in Europe and Asia-Pacific.
The company also advanced its partnership with Brainlab to address its gap in enabling technologies. “The space is very competitive,” said Mr. Jamali. “We are addressing the areas of concern. One was enabling technologies and how you compete there against others that have enabling technologies. With Brainlab, I think we’re securing a good place there with a very state-of-the-art technology platform added to our devices, which I think are going to be a great match.”
Previously, ZimVie expected its 2023 sales to decline in the teens. However, the company offered revised guidance with its spine business declining in the high single digits or low double digits.
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
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $80.7 | $88.7 | ($8.0) | (9%) |
| Orthobiologics | $15.9 | $17.3 | ($1.3) | (7.8%) |
| Enabling Technology | $1.9 | $1.8 | $0.1 | 3.7% |
| Other (Bone Healing) | $7.6 | $7.4 | $0.3 | 3.7% |
| Total | $106.2 | $115.2 | ($9.0) | (7.8%) |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $162.6 | $178.9 | ($16.3) | (9.1%) |
| Orthobiologics | $31.2 | $33.3 | ($2.1) | (6.3%) |
| Enabling Technology | $3.8 | $3.7 | $0.1 | 3.6% |
| Other (Bone Healing) | $13.6 | $13.5 | $0.1 | 0.7% |
| Total | $211.2 | $229.3 | ($18.2) | (7.9%) |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $84.5 | $92.8 | ($8.3) | (9%) |
| OUS | $21.7 | $22.4 | ($0.6) | (2.9%) |
| Total | $106.2 | $115.2 | ($9.0) | (7.8%) |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $167.5 | $179.4 | ($11.9) | (6.6%) |
| OUS | $43.6 | $49.9 | ($6.3) | (12.6%) |
| Total | $211.2 | $229.3 | ($18.2) | (7.9%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $224.9 | |
| Cost of Sales | $74.5 | 33.1% |
| Selling and Admin | $128.5 | 57.1% |
| R & D | $13.2 | 5.9% |
| Other | $32.1 | 14.3% |
| Net Earnings | ($23.4) | (10.4%) |
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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.
