Zimmer Biomet Explained

Zimmer Biomet Holdings, Inc.
Former Name:	Zimmer Holdings, Inc.
Type:	Public
Founder:	Justin O. Zimmer
Key People:	Ivan Tornos (CEO)
Revenue:	(2023)
Operating Income:	(2023)
Net Income:	(2023)
Assets:	(2023)
Num Employees:	(2023)
Location:	Warsaw, Indiana, U.S.
Footnotes:	^[1]

Zimmer Biomet Holdings, Inc. is a publicly traded medical device company. It was founded in 1927 to produce aluminum splints. The firm is headquartered in Warsaw, Indiana, where it is part of the medical devices business cluster.

In 2001, Zimmer was spun off from Bristol-Myers Squibb and began trading on the New York Stock Exchange, on August 7, under the ticker symbol “ZMH”.^[2] In November 2011, the company acquired ExtraOrtho, Inc. (ExtraOrtho). In January 2012, the company acquired Reno, Nevada-based Synvasive Technology, Inc.^[3] On June 29, 2015, the company changed the ticker symbol to "ZBH" to reflect its acquisition of Biomet.^[4]

On January 12, 2017, Zimmer Biomet announced a resolution with the DOJ and the SEC in which it agreed to pay a fine of approximately $30.5 million, an amount which would not affect its 2017 outlook.^[5]

History

Zimmer Biomet was established in 1927 by Justin O. Zimmer (1884–1951)^[6] in Warsaw, Indiana.^{[7] [8]}

On April 24, 2014, it was announced that Zimmer had agreed to purchase Biomet Inc. for $13.4 billion.^[9] In October 2014, however, it was announced that the EU's antitrust regulators had opened an extensive investigation into Zimmer's bid for Biomet due to concern that it would substantially lessen competition in certain markets.^[10] In March 2016, European Commission (“EC”) conditionally cleared Zimmer's proposed acquisition of Biomet, Inc.^{[11] [12]} and on June 24, 2015, Zimmer completed its acquisition of Biomet forming Zimmer Biomet Holdings.

In October 2014, the company announced it would acquire ETEX Holdings, Inc.^{[13] [14]}

In March 2016, Zimmer Biomet announced it would acquire Ortho Transmission, LLC.^[15] The company also announced it would acquire sports medicine company, Cayenne Medical, Inc.^{[16] [17]} Later in the same year the company acquired medical device manufacturer, LDR Holding Corporation for $37 per share ($1 billion in total),^[18] merging it into their Spine division.^{[19] [20]} In July, the company acquired French surgical robotics company Medtech.^[21] In August, the company announced it was acquiring Delaware-based CD Diagnostics,^[22] a diagnostics company developing immunoassays and biomarker testing.^[23] In September, Zimmer announced the acquisition of Clinical Graphics, B.V.^[24]

The Justin Zimmer House in Warsaw is listed on the National Register of Historic Places.

In January 2023, the company announced its intention to acquire Embody, Inc. for $155 million (plus a potential $120 million in milestones).^[25]

In August 2024, Zimmer Biomet announced plans to acquire OrthoGrid Systems, an AI surgical guidance company, in order to expand its market share in hip replacement procedures.^{[26] [27]}

Products

Zimmer designs, develops, manufactures and markets orthopedics products, including knee, hip, shoulder, elbow, foot and ankle artificial joints and dental prostheses. In 2024, Zimmer introduced the ROSA Shoulder, said to be the world's first robotic surgery system for shoulder replacement, and the fourth application for the company's ROSA Robotics portfolio, which includes the ROSA Knee System for total knee arthroplasty and ROSA Hip System for total hip replacement. ^[28] Zimmer has operations in more than 40 countries around the world (US, Australia, Austria, Belgium, Canada, China, Czech Republic, Finland, France, Germany, India, Ireland, Israel, Italy, Japan, Latin America, Netherlands, Brasil, Poland, Portugal, Russia, South Africa, Spain etc.) and sells products in more than 100 countries.^[29]

Acquisition history

The following is an illustration of the company's major mergers, acquisitions and historical predecessors:

• Zimmer Biomet
  • Zimmer Biomet
    • Zimmer, Inc
      • Centerpulse AG (Acq 2003)
      • InCentive Capital AG (Acq 2003)
      • ORTHOsoft Inc (Acq 2007)
      • Medizin-Technik GmbH(Acq 2013)
      • Knee Creations, LLC (Acq 2013)
      • ETEX Holdings, Inc (Acq 2014)
    • Biomet, Inc
      • Orthopedic Equipment Company (Acq 1984)
      • Electro-Biology, Inc (Acq 1988)
      • Arrow Surgical Technologies (Acq 1990, renamed Biomet Sports Medicine)
      • W. Lorenz Surgical, Inc (Acq 1992)
      • Kirschner Medical Corporation (Acq 1994)
      • Innovations, Inc (Acq 1999)
      • Biomet-Merck Joint Venture (Acq 2004, renamed Biomet Europe Group)
  • Ortho Transmission, LLC (Acq 2016)
  • Cayenne Medical, Inc. (Acq 2016)
  • LDR Holding Corporation (Acq 2016)
  • CD Diagnostics (Acq 2016)
  • Clinical Graphics, B.V. (Acq 2016)
  • A&E Medical Corporation (Acq 2020)
  • Embody, Inc. (Acq 2023)
  • OrthoGrid Systems (Acq 2024)

Company data

Zimmer's 2023 sales were approximately $7.4 billion. The company has approximately 18,000 employees worldwide.^[1]

Leadership

• David C. Dvorak, was president and CEO^[30] from May 1, 2007, to July 11, 2017.^[31]
• Dan Florin, Interim President and CEO from July 11, 2017, to December 19, 2017.^[32]
• Bryan C. Hanson, President and CEO from December 19, 2017^[32] to August 22, 2023.
• Ivan Tornos, President and CEO from August 22, 2023 to current.

Recognition

In 2016, the company was recognized on the Fortune 500 list for the first time, ranking in position #431.^[33] Since then, it has been on the list for three straight years.^[34] As of 2018, the company is ranked 361st on the list.^[35]

Criticism

During the 2022 Russian invasion of Ukraine, Zimmer Biomet continued to sell to the Russian market. Research from Yale University updated on April 28, 2022, identifying how companies were reacting to Russia's invasion identified Zimmer Biomet as continuing business-as-usual in Russia: companies defying demands for exit/reduction of activities.^[36]

Public-private engagement

Activism

Zimmer Biomet is a corporate partner of Human Rights Campaign, a large LGBT advocacy organization.^[37]

Notes and References

1. Web site: Zimmer Biomet Holdings, Inc. 2023 Annual Report (Form 10-K) . February 23, 2024 . U.S. Securities and Exchange Commission.
2. Web site: Zimmer Biomet Inc, Form 10-12B/A, Filing Date Jul 6, 2001 . secdatabase.com . Apr 25, 2018.
3. Web site: Zimmer Biomet Inc, Form 10-K, Annual Report, Filing Date Feb 27, 2013 . secdatabase.com . Apr 25, 2018.
4. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Jun 26, 2015 . secdatabase.com . Apr 25, 2018.
5. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Jan 18, 2017 . secdatabase.com . Apr 25, 2018.
6. Web site: justin o zimmer. 2020-09-17. chicagonyeparty.com.
7. Web site: Vaidya. Anuja. 15 things to know about Zimmer Biomet. 2020-09-17. www.beckersspine.com. en-gb.
8. Web site: 2020-05-12. Zimmer Biomet Holdings (ZBH) Receives a Buy from Leerink Partners. 2020-09-17. Smarter Analyst. en-US.
9. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Apr 24, 2014 . secdatabase.com . Apr 25, 2018.
10. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Oct 2, 2014 . secdatabase.com . Apr 25, 2018.
11. Web site: Zimmer Biomet Inc, Form 425, Filing Date Mar 30, 2015 . secdatabase.com . Apr 25, 2018.
12. Reuters. 3 October 2014. EU regulators open extensive probe into Zimmer, Biomet deal .
13. Web site: Zimmer Biomet Inc, Form 10-K, Annual Report, Filing Date Feb 23, 2015 . secdatabase.com . Apr 25, 2018.
14. Web site: Zimmer Acquires ETEX Holdings, Inc.. investor.zimmerbiomet.com.
15. Web site: Zimmer Biomet Acquires Ortho Transmission, LLC and Assets for Pioneering Technology to Restore Limb Amputee Patients. investor.zimmerbiomet.com.
16. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Apr 25, 2016 . secdatabase.com . Apr 25, 2018.
17. Web site: Zimmer Biomet Completes Acquisition of Cayenne Medical. investor.zimmerbiomet.com.
18. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Jun 7, 2016 . secdatabase.com . Apr 25, 2018.
19. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Jul 13, 2016 . secdatabase.com . Apr 25, 2018.
20. Web site: Zimmer Biomet To Acquire LDR To Enhance Innovation And Growth Of Spine Business. investor.zimmerbiomet.com.
21. Web site: EX-99.1. www.sec.gov. 2019-01-23.
22. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Aug 15, 2016 . secdatabase.com . Apr 25, 2018.
23. Web site: Zimmer Biomet Strengthens Musculoskeletal Diagnostic Offering with Acquisition of CD Diagnostics. investor.zimmerbiomet.com.
24. Web site: Zimmer Biomet Adds 3D Range-of-Motion Simulation Capability with Strategic Acquisition of Clinical Graphics. investor.zimmerbiomet.com.
25. Web site: Zimmer Biomet to Acquire Embody, Inc .
26. Web site: Zimmer Biomet Signs Definitive Agreement to Acquire OrthoGrid Systems, Inc. . 2024-08-12 . investor.zimmerbiomet.com . en.
27. Web site: Zimmer Biomet to acquire AI surgical guidance company OrthoGrid Systems . Fiercebiotech.
28. Web site: Zimmer Biomet wins FDA clearance for ROSA Shoulder System (NYSE:ZBH) | Seeking Alpha. Preeti . Singh. February 22, 2024. seekingalpha.com.
29. [Simon, Hermann]
30. Web site: Leadership. www.zimmerbiomet.com.
31. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Jul 11, 2017 . secdatabase.com . Apr 25, 2018.
32. Web site: Zimmer Biomet Inc, Form 8-K, Current Report, Filing Date Dec 21, 2017 . secdatabase.com . Apr 25, 2018.
33. News: Here Are the 15 New Companies Joining the Fortune 500. Fortune. 2018-06-06. en.
34. Web site: Zimmer Biomet Holdings. Fortune. en-US. 2018-06-06.
35. Web site: Zimmer Biomet Holdings. Fortune. 2018-12-18.
36. Web site: . Over 750 Companies Have Curtailed Operations in Russia—But Some Remain . . 28 April 2022.
37. Web site: Corporate Partners . live . https://web.archive.org/web/20220714072833/https://www.hrc.org/about/corporate-partners . 2022-07-14 . 2022-07-14 . Human Rights Campaign.