DURHAM, N.C. - Zimmer Biomet Holdings, Inc. (NYSE:ZBH), a global leader in medical technology, has entered into a multi-year co-marketing agreement with RevelAi Health, a software as a service (SAAS) company specializing in generative artificial intelligence (AI) for healthcare. The collaboration aims to enhance value-based orthopedic care and promote health equity through AI-powered solutions.
RevelAi Health's platform, which includes a patient care-management system and a care team dashboard for providers, will be commercialized by Zimmer Biomet as part of the agreement. The partnership also covers any future products or services developed by RevelAi Health.
Christian Péan, CEO of RevelAi Health and an orthopedic trauma surgeon, highlighted the potential of generative AI in improving clinical workflows and addressing socio-demographic disparities in healthcare. He emphasized the importance of personalized patient care and the reduction of clinician burnout.
RevelAi's technology is designed to meet the Centers for Medicare & Medicaid Services (CMS) requirements, such as Patient Reported Outcome measures and Social Drivers of Health (SDOH) Screening. Its patient care management system employs text messaging and a clinician-guided voice agent to streamline care workflows and enhance patient engagement.
Edmond Davis, Senior Director-Health Equity at Zimmer Biomet, underscored the commitment to making orthopedic care more accessible and meeting the clinical and social needs of the communities served. The partnership with RevelAi is seen as a step towards addressing the needs of underserved and vulnerable populations.
Zimmer Biomet has a longstanding reputation in the medical technology industry, with over 90 years of experience. The company is recognized for its comprehensive portfolio and its integration of digital and robotic technologies in patient care.
In other recent news, Zimmer Biomet Holdings, Inc. has entered an exclusive distribution agreement with THINK Surgical, Inc. for the TMINI Miniature Robotic System, a significant addition to Zimmer Biomet's ROSA® Robotics suite. The TMINI system, expected to be available in select U.S. markets in the second half of 2024, is aimed at enhancing the accuracy of knee implant positioning. The company also announced a strategic partnership with CBRE Group (NYSE:CBRE), Inc. to develop orthopedic ambulatory surgery centers across the U.S., a move that aligns with Zimmer Biomet's strategy to diversify into higher-growth markets.
In terms of analyst ratings, Piper Sandler and RBC Capital maintained an Overweight and Outperform rating respectively, while Citi and Goldman Sachs reiterated a Neutral stance. These ratings followed Zimmer Biomet's investor day, where the company presented a long-range plan for 2024 to 2027, which includes mid-single-digit revenue growth, increased bottom-line growth, and strategic mergers and acquisitions.
The company's board also authorized a stock repurchase program of up to $2 billion, demonstrating confidence in the firm's financial health.
InvestingPro Insights
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is embracing the future of healthcare through its strategic partnership with RevelAi Health, leveraging artificial intelligence to advance orthopedic care. As the company forges ahead with technological innovations, a look at the real-time data from InvestingPro paints a detailed financial picture that could be of interest to investors and industry observers alike.
InvestingPro data indicates that Zimmer Biomet has a market capitalization of $22.47 billion, reflecting its significant presence in the medical technology sector. The company's commitment to shareholder returns is evident with an aggressive share buyback strategy, as highlighted by one of the InvestingPro Tips. Additionally, Zimmer Biomet is trading at an attractive P/E ratio of 18.73 based on the last twelve months as of Q1 2024, which is considered low relative to its near-term earnings growth prospects.
Another key metric that stands out is the company's PEG ratio for the same period, which is at a notably low 0.2. This suggests that Zimmer Biomet's stock price is potentially undervalued given its earnings growth rate, making it a point of interest for value investors. Moreover, the company has maintained dividend payments for 13 consecutive years, with a current yield of 0.88%, demonstrating a reliable return to stockholders even in a dynamic market environment.
For investors seeking additional insights and analysis, there are 21 more InvestingPro Tips available for Zimmer Biomet at https://www.investing.com/pro/ZBH. These tips include observations on stock performance, such as the RSI indicating oversold territory and the fact that Zimmer Biomet is trading near its 52-week low, which could signal a potential buying opportunity for contrarian investors.
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