Zimmer Biomet expressed its optimism that the company will strengthen its market return in 2025 during the JP Morgan Healthcare Conference in San Francisco, US.
Following some challenges last year, chiefly around complications in transitioning to a new enterprise resources planning (ERP) system, a situation that caused the orthopaedic medical device company’s stock price to fall 9% in September 2024 and affecting 2024 revenues by 1%, Zimmer anticipates a stronger 2025 due to six recent new product launches.
Zimmer CEO Ivan Tornos also conceded that the company had recently lost some market share to competitors in the hip and knee space, but stated his belief that the company was in a turnaround phase, having achieved consecutive mid-single-digit revenue growth over the past three years, with around 68% of its revenue in hips and knees.
Zimmer reported net sales of around $1.8bn in its most recent third-quarter financials, representing a 4% increase over the same quarter in 2023.
The six products released in the US last year, which Tornos noted would get into “full launch mode” in 2025 and “complete” its portfolio, include the Persona Revision Knee System, the HAMMR Automated Hip Impaction System, and the Oxford Cementless Partial Knee System.
Tornos said: “We lost market share to DePuy Synthes [a company of Johnson & Johnson] when it comes to hips, with a struggle to stay more or less afloat when it comes to our knee performance here in the US.
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By GlobalData“But we strongly believe that these six new product introductions are going to accelerate our leadership position.”
Zimmer anticipates that Oxford Cementless, a product for unilateral knee procedures with osteoarthritis or avascular necrosis, will be its most significant offering in 2025. According to Tornos, the product, which has been available in Europe since 2004, has the highest joint survivorship registry of any registry in the UK.
He commented: “We expect that this is going to be a leading platform here in the US, given the rapid migration into cementless knees.”
Outside the US market, Tornos highlighted Zimmer’s optimism around the upcoming launch of its Persona Revision knee replacement system in Europe. He also revealed that since its US approval in 2019, the system had surpassed over $2bn in gross sales as the country’s number one revision system.
He added: “Our expectation is that it’s going to be a fairly rapid uptake in Europe.”
Looking ahead at the hip and knee market, which Zimmer forecasts is growing at around 4.2%, Tornos closed out his presentation by sharing the company’s expectations for the knee and hip replacement field in 2030 and beyond.
He commented: “We believe there’s going to be a day in which we can restore cartilage versus replacing cartilage with an implant.
“We also believe that the power of data is going to personalise how we think about surgical treatment, and we’re going to be able to predict that when you get sick, what kind of osteoarthritis you’re going to have, and what the right treatment to have at the right time will be.”
