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Zimmer Biomet Expands Arthroscopy/Soft Tissue Product Portfolio

Posted in Views on the News | Feb 2017 | Comments (0)

Tags: orthopaedic surgeonarthroscopy/soft tissue

Zimmer Biomet reported its 2016 sales, closing the year at $7.1BB in orthopaedic revenue, +3.2% from the prior year.* Of that, we estimate the company’s Arthroscopy/Soft Tissue Repair revenue to be $124.2MM, or ~2% of its overall ortho sales. While this is the smallest of the company’s revenue segments by our measure,† it is among its areas of highest growth—coming in at +8.1% vs. 2015, second to spine, which grew at +15.6% including acquisitions.

The health of the Arthroscopy/Soft Tissue Repair segment is also supported by acquisitions that brought implantables, like Cayenne Medical, and products in the company’s early-intervention portfolio that allow providers to treat a patient sooner, before full reconstruction is needed—like Gel-One and Subchondroplasty.

The latter were among consistently-cited growth drivers for ZBH last year, and we expect this to continue, as recent developments for the products include:

FDA approval of an expanded 26-week efficacy claim for single-injection Gel-One Cross-linked Hyaluronate viscosupplement for the treatment of knee pain associated with osteoarthritis (OA).

The formula requires a single 3 mL injection to complete the treatment course. In late 2015, it received FDA approval for repeated use, presenting an option for longer-term OA treatment.

Zimmer Biomet has distributed the product in the U.S. on behalf of Seikagaku since 2013. The two companies also partner on U.S. distribution of VISCO-3, a 3-injection hyaluronic acid-based viscosupplement to treat knee OA pain.

International release of the Subchondroplasty procedure (SCP), following its approval under the CE Mark. ZBH also received approval for distribution in Canada, Hong Kong, Malaysia and Singapore.

The minimally invasive outpatient procedure addresses defects associated with subchondral bone marrow lesions. SCP fills the chronic lesions with AccuFill Bone Substitute, a porous injectable calcium phosphate, which is resorbed and replaced with healthy bone.

Initially used in bone defects of the knee, the SCP Procedure has been successfully performed in other areas including the foot, ankle and hip. ZBH owns 36 patents and eight trademarks in this area, with others pending.

*All revenue and growth figures cited herein are ORTHOWORLD estimates.
†ORTHOWORLD estimates revenue for five major categories and one general: Joint Reconstruction, Trauma, Arthroscopy/Soft Tissue Repair, Spine, Orthobiologics and Other.

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