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Zimmer Biomet (ZBH) Reveals Positive Hip Arthroplasty Data
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Musculoskeletal giant – Zimmer Biomet Holdings, Inc. (ZBH - Free Report) – successfully continues its innovation and product launch spree. Post the company’s announcement of a spine product launch earlier this week, it has come up with positive data on a certain hip product.
According to the company, the National Joint Registry (NJR) for England, Wales, Northern Ireland and the Isle of Man recently documented that the use of Trabecular Metal Cups have led to significant reduction in hip revision rates in a large clinical patient population. They have also yielded better outcomes in comparison to the traditional non-Trabecular Metal implants. NJR is a government-led registry that monitors the joint replacement implants and the effectiveness of joint replacement procedures.
Per the findings, Trabecular Metal Cups used in revision total hip arthroplasty (THA) are observed to be 21% less likely to be re-revised due to infection. NJR also noted that, for high risk patients with the first revision THA taking infectious turn, Trabecular Metal Cups appear to be 35% less likely to be re-revised for infection. This apart, Trabecular Metal Cups used in revision THA were observed to have 11% less chance of being re-revised for any reason.
Revision of joint replacement surgery is quite common these days in orthopedic and reconstructive space. This occurs based on four things, infection, implant loosening, pain and dislocation. According to Zimmer Biomet, per recent data from various sources, the unique properties of Trabecular Metal implants should reduce the incidence of infection after revision total hip arthroplasty.
Share Price Movement
In majority the past six months, Zimmer Biomet traded above the Zacks categorized Medical Product industry. However, the trend took a hit after the company reported disappointing third quarter of 2016 results. The company’s trimmed full-year 2016 outlook also raises concern.
The stock lost 10.14% over the past six months compared with the broader industry’s decline of 5.32%. This apart, estimate revision trend for full-year 2016 remains dismal with 14 downward revisions, over the last 60 days. Earnings estimates have moved down 5 cents over this period to $7.92 per share. However, we expect the several new launches and positive clinical outcomes should help revive the company’s share price in near term.
Recent Developments
Over the recent past, the company has been observed to concentrate on expansion through research and development and product launches. Recently, it expanded its spine portfolio with the launch of PrimaGen Advanced Allograft. The product has been designed to be used as an allogeneic bone graft substitute containing viable donor cells. Such cells are used for the repair, replacement, reconstruction or supplementation of a recipient's tissue in case of musculoskeletal defects. These damages may be a result of surgeries or traumatic bone injuries.
Earlier in November, it introduced the Comprehensive Vault Reconstruction System, the first patient-matched glenoid implant to specifically treat patients with a severely deficient rotator cuff and extensive bone loss which precludes the use of a standard glenoid baseplate. During the same month, the company provided positive update on Biologics pipeline following a preliminary analysis of data from the first pivotal trial of stem cell therapy for critical limb ischemia to reach completion. We also note that the company has been selected as a preferred orthopedic partner to the Indo UK Institutes of Health (IUIH) to improve the quality and affordability of musculoskeletal healthcare for approximately 400 million people in India over the next 20 years.
All these developments are expected to fortify Zimmer Biomet’s position in the musculoskeletal market in the coming days.
Zacks Rank & Stocks to Consider
Zimmer Biomet carries a Zacks Rank #4 (Sell). Better-ranked medical stocks include NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 28.7% over the last one year compared with the S&P 500’s 8.6% growth over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 19.1% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 113.2% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
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Zimmer Biomet (ZBH) Reveals Positive Hip Arthroplasty Data
Musculoskeletal giant – Zimmer Biomet Holdings, Inc. (ZBH - Free Report) – successfully continues its innovation and product launch spree. Post the company’s announcement of a spine product launch earlier this week, it has come up with positive data on a certain hip product.
According to the company, the National Joint Registry (NJR) for England, Wales, Northern Ireland and the Isle of Man recently documented that the use of Trabecular Metal Cups have led to significant reduction in hip revision rates in a large clinical patient population. They have also yielded better outcomes in comparison to the traditional non-Trabecular Metal implants. NJR is a government-led registry that monitors the joint replacement implants and the effectiveness of joint replacement procedures.
Per the findings, Trabecular Metal Cups used in revision total hip arthroplasty (THA) are observed to be 21% less likely to be re-revised due to infection. NJR also noted that, for high risk patients with the first revision THA taking infectious turn, Trabecular Metal Cups appear to be 35% less likely to be re-revised for infection. This apart, Trabecular Metal Cups used in revision THA were observed to have 11% less chance of being re-revised for any reason.
Revision of joint replacement surgery is quite common these days in orthopedic and reconstructive space. This occurs based on four things, infection, implant loosening, pain and dislocation. According to Zimmer Biomet, per recent data from various sources, the unique properties of Trabecular Metal implants should reduce the incidence of infection after revision total hip arthroplasty.
Share Price Movement
In majority the past six months, Zimmer Biomet traded above the Zacks categorized Medical Product industry. However, the trend took a hit after the company reported disappointing third quarter of 2016 results. The company’s trimmed full-year 2016 outlook also raises concern.
The stock lost 10.14% over the past six months compared with the broader industry’s decline of 5.32%. This apart, estimate revision trend for full-year 2016 remains dismal with 14 downward revisions, over the last 60 days. Earnings estimates have moved down 5 cents over this period to $7.92 per share. However, we expect the several new launches and positive clinical outcomes should help revive the company’s share price in near term.
Recent Developments
Over the recent past, the company has been observed to concentrate on expansion through research and development and product launches. Recently, it expanded its spine portfolio with the launch of PrimaGen Advanced Allograft. The product has been designed to be used as an allogeneic bone graft substitute containing viable donor cells. Such cells are used for the repair, replacement, reconstruction or supplementation of a recipient's tissue in case of musculoskeletal defects. These damages may be a result of surgeries or traumatic bone injuries.
Earlier in November, it introduced the Comprehensive Vault Reconstruction System, the first patient-matched glenoid implant to specifically treat patients with a severely deficient rotator cuff and extensive bone loss which precludes the use of a standard glenoid baseplate. During the same month, the company provided positive update on Biologics pipeline following a preliminary analysis of data from the first pivotal trial of stem cell therapy for critical limb ischemia to reach completion. We also note that the company has been selected as a preferred orthopedic partner to the Indo UK Institutes of Health (IUIH) to improve the quality and affordability of musculoskeletal healthcare for approximately 400 million people in India over the next 20 years.
All these developments are expected to fortify Zimmer Biomet’s position in the musculoskeletal market in the coming days.
Zacks Rank & Stocks to Consider
Zimmer Biomet carries a Zacks Rank #4 (Sell). Better-ranked medical stocks include NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 28.7% over the last one year compared with the S&P 500’s 8.6% growth over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 19.1% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 113.2% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>