Zimmer Biomet had a strong 2024, bolstering its product lines and staying on top of orthopedic medtech trends.
Here's where it stands going into the next year:
Leaning into AI
Zimmer Biomet made two moves to deepen its reach into the healthcare AI space. In June the company signed a multiyear co-marketing agreement with RevelAi Health. Under the partnership, Zimmer Biomet will commercialize RevelAi's artificial intelligence-powered care management platform, care team dashboard and future products. RevelAi's products help streamline care workflows while addressing healthcare disparities.
Zimmer Biomet also signed an agreement to acquire OrthoGrid Systems, which develops artificial intelligence-driven guidance for total hip replacement. The acquisition includes Hip AI,two more FDA-cleared orthopedic applications and more than 40 patents. OrthoGrid Systems' Hip AI system offers real-time image analysis, automated measurements of leg length and offset and guidance on cup placement. Surgeons can also use the system to align with their own workflows.
Developing total knee implants
Zimmer Biomet's total knee replacement portfolio has continued to grow with its traditional and smart implants.
The Persona IQ smart knee implant, which hit the market in 2021, is gaining payer interest with CMS granting it CMS' New Technology Add-on Payment in 2023. In an Aug. 7 earning call CEO Ivan Tornos said the company is gearing up for new Persona IQ developments and discussions with payers about risk-sharing agreements. The smart implant has more than 3 billion data points which are used to drive conversations about recovery and performance.
Zimmer Biometalso earned FDA clearance for its Persona SoluTion porous plasma spray femur total knee implant component and the Oxford cementless partial knee implant. The company now has a fully cementless alternative to cobalt-chrome implants.
Anticipated financial growth
On the heels of $1.8 billion in third quarter sales, Mr. Tornos is optimistic about the coming years for Zimmer Biomet. Growth is largely supported by the company's new Rosa shoulder robot and upcoming devices.
"We do believe in late 2025 and 2026 is going to be one of the major growth drivers of the company," Mr. Tornos said in an Oct. 30 earnings call, as transcribed by Seeking Alpha. "Like where we are with the smart implants, it took a while to get there. But with the recent launch of the short stem, what we call Persona IQ … we're going to see meaningful adoption in 2025 and 2026."
He said there are 50 new products anticipated in the next three years including stemless shoulder implants and coated hip devices.