ZBH’s Launch of Latest Vanguard System Strengthens Knee Portfolio




Zimmer Biomet (ZBH) offers a market-leading musculoskeletal portfolio and is a leading company in the musculoskeletal market. The company has recently been focusing on regaining lost market share due to the company’s focus on integration efforts after the acquisition of Biomet in 2015.

On September 20, 2016, the company announced the launch of its Vanguard total knee replacement system. It’s an individualized design system that enables physicians to personalize the implant according to patient needs.

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The original Vanguard system was launched in 2003. The technology was a pioneer in the personalized knee replacement offerings on the market. Zimmer Biomet is the leading player in the hip and knee reconstruction market. The company generated around 62% of its total sales through its reconstruction segment, which includes its knee and hip implants. Zimmer Biomet’s knee category sales grew around 5% in 2Q16, led by the company’s cross-selling opportunities across its reconstruction portfolio. The above diagram shows the performance of the segment in recent quarters. For more details on Zimmer Biomet’s fundamentals, read Zimmer Biomet: How’s This Double-Headed Giant Doing?

Vanguard total knee replacement system’s features and benefits

The Vanguard Individualized Design (or ID) knee replacement system launched by Zimmer Biomet Holdings is a “first-of-its-kind total knee arthroplasty (or TKA) construct designed to enable a personalized fit while simplifying soft tissue preservation and balance.”

According to Zimmer Biomet, “Our newly released Vanguard Individualized Design will revolutionize total knee replacement. With the ability to fine tune the knee’s balance through the use of independent medial and lateral bearing thickness and constraint options, we will arm the surgeon with the ultimate soft tissue respecting capability.”

Medtronic (MDT), Stryker (SYK), and Johnson & Johnson (JNJ) are Zimmer Biomet’s major competitors in the musculoskeletal market. The iShares Russell 1000 Growth ETF (IWF) has ~0.12% of its total holdings in Zimmer Biomet Holdings.

Next, let’s look at the company’s acquisition of CD Diagnostics.


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