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Zimmer Biomet (ZBH) Signs Co-Marketing Agreement for HipInsight

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Zimmer Biomet Holdings, Inc. (ZBH - Free Report) recently inked an exclusive, multi-year co-marketing agreement with Surgical Planning Associates, Inc. to commercialize the FDA-approved HipInsight mixed reality navigation system for total hip replacement. The novel mixed reality navigation system has been tailored particularly for Zimmer Biomet's hip implant portfolio.

The HipInsight is the most recent addition to the OptiVu Mixed Reality portfolio of applications. This addition has strengthened the capabilities of ZBEdge suite of integrated smart, digital and robotic technologies, which are intended to deliver transformative data-powered insights to optimize patient outcomes.

Per Zimmer Biomet's management, the addition of HipInsight to the mixed reality portfolio has advanced the company’s commitment to transforming the surgical experience with the latest innovative technologies that assist surgeons in enhancing accuracy, striving for better outcomes and optimizing efficiency during total hip arthroplasty.

The latest collaboration will allow Zimmer Biomet to provide surgeons with a sophisticated and proven mixed reality-based visualization tool designed specifically for exclusive use with its hip implant portfolio.

More on the HipInsight

The HipInsight utilizes Microsoft HoloLens 2 glasses to help surgeons visualize a hologram of the patient's pelvic anatomy. The hologram will be projected on the pelvis to aid in implant placement and alignment during surgery. The HipInsight is unlike other traditional intraoperative surgical navigation systems that deliver information on flat screens outside the surgeon's view.

The HipInsight System creates a detailed 3D surgical plan based on Computed Tomography (CT) that consists of crucial details for accurate and efficient implant positioning, including planned component size, pelvic tilt, leg length and offset change. The HipInsight system leverages mixed-reality glasses and the position of a smart registration tool to overlay holograms in real-time on the patient’s anatomy during surgery. This will help surgeons proceed with the surgical plan in direct view.

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Management at Surgical Planning Associates mentioned that the latest collaboration is part of the company’s journey to establish mixed-reality-based surgical guidance as the standard of care in orthopedics.

Industry Prospects

Per a report published in GlobeNewswire, the global hip replacement market is expected to see a CAGR of 5.3% during 2021-2028. Factors such as the growing incidence of osteoarthritis, a surge in the geriatric population and enhanced patient knowledge regarding hip replacement surgeries can be attributable to market growth.

Given the substantial market prospects, Zimmer Biomet’s latest agreement to commercialize HipInsight seems well-timed.

Other Notable Developments

Zimmer Biomet is witnessing constant recovery across businesses in 2022.

In the second quarter of 2022, the company delivered 11.2% growth within the Knees business, driven by strong knee procedure recovery across most regions. Within Hips business, easier comparisons outside the United States and strong international procedure recovery drove growth.

Zimmer Biomet’s international sales grew 12.2% driven by strong procedural volume across most markets in EMEA and APAC. Meanwhile, U.S. sales grew 1.3%, driven by a strong recovery in execution as COVID cases subsided and elective procedures returned, especially in knees and hips.

Share Price Performance

The stock has outperformed its industry in the past year. It has lost 16.9% compared with the 45.7% fall of the industry.

Zacks Rank and Key Picks

Currently, Zimmer Biomet carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .

AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has outperformed its industry in the past year. AMN has lost 17.4% against the industry’s 30.7% fall.

ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.

ShockWave Medical has outperformed its industry in the past year. SWAV has gained 63.8% against the industry’s 32.3% fall over the past year.

McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).

McKesson has outperformed its industry in the past year. MCK has gained 46.4% against the industry’s 13.3% fall.

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