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ZimVie reported 1Q22 orthopedic sales of $114.1 million, -13.9% compared to 1Q21.
In the short term, the company is focused on stability in the wake of its separation from Zimmer Biomet. Work remains to be done in setting up regional infrastructure for international spine sales.
ZimVie exited some unprofitable geographies in the first quarter and began the process of optimizing its portfolio. After running a deep analysis of ongoing projects, the company eliminated the most time-consuming and low-return projects. Additionally, the company realigned sales incentives in spine to prioritize key areas.
ZimVie CEO Vafa Jamali said, “We need to give the spine portfolio some time for commercial fixes that we think are doable within 2022. It doesn’t push back or change any of our thesis with regards to our growth drivers, but it does require us to take a little bit more active management of some of the commercial decisions we made and some of the execution that we have done in Q1 and for the rest of 2022.”
The company previously said that its spine business would decline in the mid-single digits for 2022, but revised that guidance after the first quarter. ZimVie now expects its spine business to decline in the mid-single to high-single digits for the full year.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $91.3 | $105.8 | ($14.5) | (13.7%) |
| Orthobiologics | $16.0 | $18.8 | ($2.9) | (15.1%) |
| Other (Bone Healing) | $6.8 | $8.0 | ($1.1) | (13.9%) |
| Total | $114.1 | $132.6 | ($18.5) | (13.9%) |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $86.6 | $100.1 | ($13.5) | (13.5%) |
| OUS | $27.5 | $32.5 | ($5.0) | (15.4%) |
| Total | $114.1 | $132.6 | ($18.5) | (13.9%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $234.7 | |
| Cost of Sales | $85.0 | 36.2% |
| Selling and Admin | $134.1 | 57.1% |
| R & D | $17.7 | 7.5% |
| Other | $23.6 | 10% |
| Net Earnings | ($25.7) | (10.9%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ZimVie reported 1Q22 orthopedic sales of $114.1 million, -13.9% compared to 1Q21.
In the short term, the company is focused on stability in the wake of its separation from Zimmer Biomet. Work remains to be done in setting up regional infrastructure for international spine sales.
ZimVie exited some unprofitable geographies in the first...
ZimVie reported 1Q22 orthopedic sales of $114.1 million, -13.9% compared to 1Q21.
In the short term, the company is focused on stability in the wake of its separation from Zimmer Biomet. Work remains to be done in setting up regional infrastructure for international spine sales.
ZimVie exited some unprofitable geographies in the first quarter and began the process of optimizing its portfolio. After running a deep analysis of ongoing projects, the company eliminated the most time-consuming and low-return projects. Additionally, the company realigned sales incentives in spine to prioritize key areas.
ZimVie CEO Vafa Jamali said, “We need to give the spine portfolio some time for commercial fixes that we think are doable within 2022. It doesn’t push back or change any of our thesis with regards to our growth drivers, but it does require us to take a little bit more active management of some of the commercial decisions we made and some of the execution that we have done in Q1 and for the rest of 2022.”
The company previously said that its spine business would decline in the mid-single digits for 2022, but revised that guidance after the first quarter. ZimVie now expects its spine business to decline in the mid-single to high-single digits for the full year.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $91.3 | $105.8 | ($14.5) | (13.7%) |
| Orthobiologics | $16.0 | $18.8 | ($2.9) | (15.1%) |
| Other (Bone Healing) | $6.8 | $8.0 | ($1.1) | (13.9%) |
| Total | $114.1 | $132.6 | ($18.5) | (13.9%) |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $86.6 | $100.1 | ($13.5) | (13.5%) |
| OUS | $27.5 | $32.5 | ($5.0) | (15.4%) |
| Total | $114.1 | $132.6 | ($18.5) | (13.9%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $234.7 | |
| Cost of Sales | $85.0 | 36.2% |
| Selling and Admin | $134.1 | 57.1% |
| R & D | $17.7 | 7.5% |
| Other | $23.6 | 10% |
| Net Earnings | ($25.7) | (10.9%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. 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.
