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Zimmer Biomet Poised on LDR Inclusion, Product Launches
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On Jul 4, 2016, we issued an updated research report on Zimmer Biomet Holdings, Inc. (ZBH - Free Report) – a major player in the musculoskeletal industry. The consolidated company formed post the merger of the legacy Zimmer Holdings and Biomet, is successfully expanding through strategic mergers and acquisitions.
The company’s recent $1 billion LDR buyout deal should bolster its presence in the $10 billion global spine market by expanding its portfolio of innovative solutions and providing a strong foothold in the fast growing cervical disc replacement market. This transaction is also expected to drive significant financial benefits for the consolidated company post 2017.
Additionally, its net synergies from the Biomet merger are currently anticipated to exceed $350 million in pre-tax by the end of the third year, post transaction. The company also expects the merger to contribute 95 cents to $1.05 to adjusted earnings per share with $135 million of pre-tax, net synergy savings in the first year of the acquisition. Moreover, the growth rate of adjusted earnings per share beyond 2015 is likely to accelerate.
We are also encouraged about the slowly stabilizing global musculoskeletal market. The last three reported quarters witnessed gradual stability in this market with better-than-expected sales growth in certain geographies, banking on improved procedural volume. This was driven by favorable demographics and growing utilization of musculoskeletal healthcare in emerging markets and under-penetrated developed markets.
However, macroeconomic uncertainties, pricing pressure and unfavorable currency adversely impacted sales in the first quarter of 2016. As expected, currency headwinds continued as a major threat, accounting for the sluggish top line worldwide. The huge margin contraction also posed hurdles. In addition, intense competition in the orthopedic market continues to raise concerns.
Key Picks in the Sector
Some medical product stocks worth a look are Boston Scientific Corporation (BSX - Free Report) , ICU Medical, Inc. (ICUI - Free Report) and NuVasive, Inc. .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Zimmer Biomet Poised on LDR Inclusion, Product Launches
On Jul 4, 2016, we issued an updated research report on Zimmer Biomet Holdings, Inc. (ZBH - Free Report) – a major player in the musculoskeletal industry. The consolidated company formed post the merger of the legacy Zimmer Holdings and Biomet, is successfully expanding through strategic mergers and acquisitions.
The company’s recent $1 billion LDR buyout deal should bolster its presence in the $10 billion global spine market by expanding its portfolio of innovative solutions and providing a strong foothold in the fast growing cervical disc replacement market. This transaction is also expected to drive significant financial benefits for the consolidated company post 2017.
Additionally, its net synergies from the Biomet merger are currently anticipated to exceed $350 million in pre-tax by the end of the third year, post transaction. The company also expects the merger to contribute 95 cents to $1.05 to adjusted earnings per share with $135 million of pre-tax, net synergy savings in the first year of the acquisition. Moreover, the growth rate of adjusted earnings per share beyond 2015 is likely to accelerate.
We are also encouraged about the slowly stabilizing global musculoskeletal market. The last three reported quarters witnessed gradual stability in this market with better-than-expected sales growth in certain geographies, banking on improved procedural volume. This was driven by favorable demographics and growing utilization of musculoskeletal healthcare in emerging markets and under-penetrated developed markets.
However, macroeconomic uncertainties, pricing pressure and unfavorable currency adversely impacted sales in the first quarter of 2016. As expected, currency headwinds continued as a major threat, accounting for the sluggish top line worldwide. The huge margin contraction also posed hurdles. In addition, intense competition in the orthopedic market continues to raise concerns.
Key Picks in the Sector
Some medical product stocks worth a look are Boston Scientific Corporation (BSX - Free Report) , ICU Medical, Inc. (ICUI - Free Report) and NuVasive, Inc. .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>