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ZimVie reported 1Q23 orthopedic sales of $104.9 million, -8.1% compared to the first quarter of 2022.
The company’s spine sales declined due to competitive pressure and its departure from the Chinese market following volume-based procurement. However, some sales previously recognized by Zimmer Biomet are now ZimVie sales and partially offset the declines.
On the positive side, ZimVie’s Tether device expanded insurance coverage to 4 million-plus members from Highmark and 280,000 members covered by BCBS North Dakota. Tether also saw procedure growth in Europe and Asia Pacific. The Mobi-C cervical disc replacement surpassed 200,000 implants, received reimbursement from the French government and received the highest quality rating from the British clinical data panel ODEP.
Additionally, the company’s enabling technology partnership with Brainlab is progressing with work to achieve compatibility between implants and navigation systems.
ZimVie’s road to recovery for spine has some distance to go, but the company feels like it is turning the corner of its transformation.
“Last year was a collection of really difficult situations for us to manage through, whether they be external factors or internal with some of the ERP changes and just the general disruption that we naturally caused with the separation,” said ZimVie CEO Vafa Jamali. “I had always said that it would take us about two years to get through the turnaround and to the stabilization point. This year, I think we’re much more commercially focused. That’s a big relief for our sales reps. And for us, frankly. I’d far rather talk about innovation than fixing or system changes.”
For 2023, ZimVie expects spine sales to decline in the teens, inclusive of a 3% impact from its China departure and 1% impact from currency translation.
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 | |
|---|---|---|---|---|
| Spine | $81.8 | $90.1 | ($8.3) | (9.2%) |
| Orthobiologics | $15.2 | $16.0 | ($0.8) | (4.8%) |
| Enabling Technology | $1.9 | $1.8 | $0.1 | 3.4% |
| Other (Bone Healing) | $6.0 | $6.2 | ($0.2) | (2.9%) |
| Total | $104.9 | $114.1 | ($9.2) | (8.1%) |
Orthopedic Sales by Geography
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $83.0 | $86.6 | ($3.6) | (4.1%) |
| OUS | $21.9 | $27.5 | ($5.6) | (20.4%) |
| Total | $104.9 | $114.1 | ($9.2) | (8.1%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $225.1 | |
| Cost of Sales | $70.7 | 31.4% |
| Selling and Admin | $128.0 | 56.9% |
| R & D | $15.4 | 6.8% |
| Other | $41.0 | 18.2% |
| Net Earnings | ($30.0) | (13.3%) |
ZimVie reported 1Q23 orthopedic sales of $104.9 million, -8.1% compared to the first quarter of 2022.
The company’s spine sales declined due to competitive pressure and its departure from the Chinese market following volume-based procurement. However, some sales previously recognized by Zimmer Biomet are now ZimVie sales and partially...
ZimVie reported 1Q23 orthopedic sales of $104.9 million, -8.1% compared to the first quarter of 2022.
The company’s spine sales declined due to competitive pressure and its departure from the Chinese market following volume-based procurement. However, some sales previously recognized by Zimmer Biomet are now ZimVie sales and partially offset the declines.
On the positive side, ZimVie’s Tether device expanded insurance coverage to 4 million-plus members from Highmark and 280,000 members covered by BCBS North Dakota. Tether also saw procedure growth in Europe and Asia Pacific. The Mobi-C cervical disc replacement surpassed 200,000 implants, received reimbursement from the French government and received the highest quality rating from the British clinical data panel ODEP.
Additionally, the company’s enabling technology partnership with Brainlab is progressing with work to achieve compatibility between implants and navigation systems.
ZimVie’s road to recovery for spine has some distance to go, but the company feels like it is turning the corner of its transformation.
“Last year was a collection of really difficult situations for us to manage through, whether they be external factors or internal with some of the ERP changes and just the general disruption that we naturally caused with the separation,” said ZimVie CEO Vafa Jamali. “I had always said that it would take us about two years to get through the turnaround and to the stabilization point. This year, I think we’re much more commercially focused. That’s a big relief for our sales reps. And for us, frankly. I’d far rather talk about innovation than fixing or system changes.”
For 2023, ZimVie expects spine sales to decline in the teens, inclusive of a 3% impact from its China departure and 1% impact from currency translation.
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 | |
|---|---|---|---|---|
| Spine | $81.8 | $90.1 | ($8.3) | (9.2%) |
| Orthobiologics | $15.2 | $16.0 | ($0.8) | (4.8%) |
| Enabling Technology | $1.9 | $1.8 | $0.1 | 3.4% |
| Other (Bone Healing) | $6.0 | $6.2 | ($0.2) | (2.9%) |
| Total | $104.9 | $114.1 | ($9.2) | (8.1%) |
Orthopedic Sales by Geography
| 1Q23 | 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $83.0 | $86.6 | ($3.6) | (4.1%) |
| OUS | $21.9 | $27.5 | ($5.6) | (20.4%) |
| Total | $104.9 | $114.1 | ($9.2) | (8.1%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $225.1 | |
| Cost of Sales | $70.7 | 31.4% |
| Selling and Admin | $128.0 | 56.9% |
| R & D | $15.4 | 6.8% |
| Other | $41.0 | 18.2% |
| Net Earnings | ($30.0) | (13.3%) |
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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.
