On September 15, 2016, Zimmer Biomet Holdings (ZBH) announced the strategic acquisition of Clinical Graphics. After the acquisition, Clinical Graphics will be a part of Zimmer Biomet’s hip preservation portfolio. The acquisition helps further strengthen the company’s musculoskeletal portfolio. Zimmer Biomet has consistently followed a strategic inorganic growth strategy to expand and strengthen its product portfolio. To know about ZBH’s inorganic growth strategy, read Zimmer Biomet Focuses on Inorganic Growth Strategy.
Strategic benefits and opportunities of the deal
Clinical Graphics, based in the Netherlands, started in 2010. The company is an established firm in the field of “3D interactive range-of-motion simulation reports for common hip conditions such as femoroacetabular impingement and dysplasia.” Clinical graphics operates in more than 25 countries and generates sales from more than 100 countries.
According to Zimmer Biomet, “3D imaging represents the next generation of treating joint pain, and we’re excited to team up with Clinical Graphics and integrate our technologies to further enhance the clinical utility of our market leading hip portfolio.” The acquisition will help expand the company’s technologies and add 3D range-of-motion simulation capability to its wide range of offerings.
Other major competitors of Zimmer Biomet in the musculoskeletal market include Stryker (SYK), Medtronic (MDT), Smith, and Nephew (SNN). The iShares Edge MSCI Min Vol USA ETF (USMV) invests approximately 0.31% of its portfolio in Zimmer Biomet.
Next, let’s discuss the launch of Zimmer Biomet’s Vanguard Individualized Design Knee Replacement system.