WARSAW, Ind. - Zimmer Biomet Holdings, Inc. (NYSE:ZBH), a global leader in medical technology, has announced the broad commercial launch of its Z1™ Femoral Hip System, designed for total hip arthroplasty, scheduled at the American Association of Hip and Knee Surgeons (AAHKS) annual meeting set for November 7-10 in Dallas. The Z1 System, a triple-taper femoral system, is paired with the company's G7® Acetabular System, aiming to offer a versatile and efficient option for hip replacement surgeries.
The company's President and CEO, Ivan Tornos, expressed enthusiasm about the new product, which is part of a comprehensive hip portfolio. The Z1 System is designed to provide stability and accommodate a range of femoral anatomies with collared and collarless options. It also features a streamlined instrument tray to reduce the sterilization burden.
Dr. Jesse Otero and Dr. Jonathan Yerasimides were the first to use the Z1 System in patient cases, both noting the ease and intuitiveness of the system. Zimmer Biomet emphasizes that the Z1 and G7 systems are complemented by enabling technologies like OrthoGrid Hip AI® and HAMMR™, which aim to support surgical navigation and guidance.
Earlier in October, Zimmer Biomet expanded its hip portfolio by acquiring OrthoGrid Systems, Inc., enhancing its offerings with AI-powered, fluoroscopy-based surgical assistance applications. OrthoGrid Hip AI assists surgeons with intra-operative guidance for cup positioning and leg length adjustments.
At the AAHKS meeting, Zimmer Biomet will showcase its hip solutions and present data from clinical studies on the G7 Acetabular System. The company also plans to display its mixed reality and robotic technologies for hip procedures.
Zimmer Biomet, with a legacy of over 90 years, operates in more than 25 countries and sells in over 100 countries, focusing on innovative products and digital and robotic technologies. The company cautions that forward-looking statements in the press release are subject to risks and uncertainties and may differ materially from actual outcomes.
This news article is based on a press release statement from Zimmer Biomet Holdings, Inc.
In other recent news, Zimmer Biomet is navigating through challenges with its Enterprise Resource Planning (ERP) system implementation. Oppenheimer and BTIG have maintained their positive ratings on the company's shares but reduced their price targets to $135 and $126, respectively. This adjustment is due to the ERP issues that are anticipated to impact Zimmer Biomet's 2024 revenue by approximately 1%.
Analyst firms such as Needham, Truist Securities, Canaccord Genuity, and TD Cowen have responded to these developments by adjusting their price targets for Zimmer Biomet, while maintaining Hold ratings. Despite these challenges, Stifel has kept its Buy rating for the company.
The ERP issues primarily affect Zimmer Biomet's Sports Medicine, Extremities, and Trauma business segment. However, the company has recently completed a $700 million financial transaction involving the issuance of notes due in 2034 and is set to acquire AI-driven surgical guidance firm OrthoGrid Systems. These recent developments illustrate Zimmer Biomet's efforts to navigate through the ERP challenges while focusing on future growth and expansion.
InvestingPro Insights
As Zimmer Biomet Holdings, Inc. (NYSE:ZBH) prepares to launch its Z1™ Femoral Hip System, investors may find value in examining the company's financial health and market position. According to InvestingPro data, Zimmer Biomet boasts a market capitalization of $20.84 billion, reflecting its significant presence in the medical technology sector.
The company's financial metrics paint a picture of steady performance. With a revenue of $7.52 billion over the last twelve months and a robust gross profit margin of 71.79%, Zimmer Biomet demonstrates strong operational efficiency. This aligns well with the company's focus on innovative products like the Z1 System, which aims to improve surgical efficiency and outcomes.
InvestingPro Tips highlight some interesting aspects of Zimmer Biomet's stock. The company has maintained dividend payments for 13 consecutive years, suggesting a commitment to shareholder returns. This could be particularly appealing to income-focused investors in the healthcare sector. Additionally, the stock is currently trading near its 52-week low, which may present a potential opportunity for value investors, especially considering that analysts predict the company will remain profitable this year.
It's worth noting that Zimmer Biomet's P/E ratio stands at 21.24, which is relatively low compared to its near-term earnings growth potential. This could indicate that the stock is undervalued, particularly in light of the company's ongoing product innovations and strategic acquisitions like OrthoGrid Systems, Inc.
For investors seeking a deeper understanding of Zimmer Biomet's prospects, InvestingPro offers additional tips and insights. There are 5 more InvestingPro Tips available for ZBH, providing a more comprehensive analysis of the company's financial health and market position.
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