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ZimVie reported 2Q22 orthopedic sales of $115.2 million, -19.6% compared to 2Q21.
The company exited some unprofitable markets in 2021, discontinued some products as part of a brand rationalization effort and is still untangling itself from Zimmer Biomet in certain markets. Adjusting for these factors, ZimVie’s spine sales declined -13.2% according to company leadership.
ZimVie is focused on its emerging product categories. Company CEO Vafa Jamali said, “Motion Preservation is an area we are actively leading and remain very excited about. That includes Mobi-C, the market-leading cervical disc replacement, and The Tether, a novel treatment for pediatric scoliosis. Minimally Invasive Surgery, which typically benefits from the addition of enabling technology, is an area in which we intend to further expand.”
Insurance coverage has been the greatest headwind for The Tether. However, ZimVie recently won a positive policy decision from Anthem Blue Cross Blue Shield, covering more than 30 million members. The Tether received a humanitarian device exemption in August 2019. More than 1,200 children have received the Tether since then, with approximately 50 surgeons in the U.S. performing the procedure.
ZimVie now expects its overall spine business to decline in the low double digits for 2022. Previously the company guided to high-single-digit declines. Leadership cited choppiness in procedural volumes, China volume-based procurement acceleration into 2022, and commercial execution challenges as factors in the decline.
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
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $91.4 | $114.0 | ($22.7) | (19.9%) |
| Orthobiologics | $16.4 | $20.1 | ($3.7) | (18.4%) |
| Other (Bone Healing) | $7.5 | $9.2 | ($1.7) | (18.3%) |
| Total | $115.2 | $143.3 | ($28.1) | (19.6%) |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $182.7 | $219.9 | ($37.2) | (16.9%) |
| Orthobiologics | $32.3 | $38.9 | ($6.5) | (16.8%) |
| Other (Bone Healing) | $14.3 | $17.1 | ($2.8) | (16.3%) |
| Total | $229.3 | $275.9 | ($46.5) | (16.9%) |
Orthopedic Sales by Geography
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $92.8 | $109.1 | ($16.3) | (14.9%) |
| OUS | $22.4 | $34.2 | ($11.8) | (34.4%) |
| Total | $115.2 | $143.3 | ($28.1) | (19.6%) |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $179.4 | $209.2 | ($29.8) | (14.2%) |
| OUS | $49.9 | $66.7 | ($16.8) | (25.1%) |
| Total | $229.3 | $275.9 | ($46.5) | (16.9%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $233.4 | |
| Cost of Sales | $80.0 | 34.3% |
| Selling and Admin | $126.1 | 54% |
| R & D | $15.3 | 6.5% |
| Other | $20.7 | 8.9% |
| Net Earnings | ($8.7) | (3.7%) |
ZimVie reported 2Q22 orthopedic sales of $115.2 million, -19.6% compared to 2Q21.
The company exited some unprofitable markets in 2021, discontinued some products as part of a brand rationalization effort and is still untangling itself from Zimmer Biomet in certain markets. Adjusting for these factors, ZimVie's spine sales declined -13.2%...
ZimVie reported 2Q22 orthopedic sales of $115.2 million, -19.6% compared to 2Q21.
The company exited some unprofitable markets in 2021, discontinued some products as part of a brand rationalization effort and is still untangling itself from Zimmer Biomet in certain markets. Adjusting for these factors, ZimVie’s spine sales declined -13.2% according to company leadership.
ZimVie is focused on its emerging product categories. Company CEO Vafa Jamali said, “Motion Preservation is an area we are actively leading and remain very excited about. That includes Mobi-C, the market-leading cervical disc replacement, and The Tether, a novel treatment for pediatric scoliosis. Minimally Invasive Surgery, which typically benefits from the addition of enabling technology, is an area in which we intend to further expand.”
Insurance coverage has been the greatest headwind for The Tether. However, ZimVie recently won a positive policy decision from Anthem Blue Cross Blue Shield, covering more than 30 million members. The Tether received a humanitarian device exemption in August 2019. More than 1,200 children have received the Tether since then, with approximately 50 surgeons in the U.S. performing the procedure.
ZimVie now expects its overall spine business to decline in the low double digits for 2022. Previously the company guided to high-single-digit declines. Leadership cited choppiness in procedural volumes, China volume-based procurement acceleration into 2022, and commercial execution challenges as factors in the decline.
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
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $91.4 | $114.0 | ($22.7) | (19.9%) |
| Orthobiologics | $16.4 | $20.1 | ($3.7) | (18.4%) |
| Other (Bone Healing) | $7.5 | $9.2 | ($1.7) | (18.3%) |
| Total | $115.2 | $143.3 | ($28.1) | (19.6%) |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $182.7 | $219.9 | ($37.2) | (16.9%) |
| Orthobiologics | $32.3 | $38.9 | ($6.5) | (16.8%) |
| Other (Bone Healing) | $14.3 | $17.1 | ($2.8) | (16.3%) |
| Total | $229.3 | $275.9 | ($46.5) | (16.9%) |
Orthopedic Sales by Geography
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $92.8 | $109.1 | ($16.3) | (14.9%) |
| OUS | $22.4 | $34.2 | ($11.8) | (34.4%) |
| Total | $115.2 | $143.3 | ($28.1) | (19.6%) |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $179.4 | $209.2 | ($29.8) | (14.2%) |
| OUS | $49.9 | $66.7 | ($16.8) | (25.1%) |
| Total | $229.3 | $275.9 | ($46.5) | (16.9%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $233.4 | |
| Cost of Sales | $80.0 | 34.3% |
| Selling and Admin | $126.1 | 54% |
| R & D | $15.3 | 6.5% |
| Other | $20.7 | 8.9% |
| Net Earnings | ($8.7) | (3.7%) |
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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.
