Zimmer Biomet’s inorganic growth strategy
Zimmer Biomet Holdings (ZBH) has implemented a consistent, strong inorganic growth strategy over the years to expand its product portfolio and strengthen the company’s market position. Although the company makes significant investments in research and development, it keeps a keen eye on strategic investment opportunities, primarily bolt-on acquisitions.
In October 2016, Zimmer Biomet Holdings announced the acquisition of the RespondWell telerehabilitation platform, which will be added to the company’s signature solutions portfolio. It will provide “personalized, clinician-supervised post-surgical physical therapy” at the patient’s home.
According to David Nolan, group president of Biologics, Extremities, Sports Medicine, Surgical, Trauma, Foot and Ankle and Office Based Technologies, “The new value-based reimbursement environment compels hospitals and providers to assume responsibility for patient outcomes well after discharge and through the critical rehabilitation period. Integrating an innovative and comprehensive telerehabilitation program into our Zimmer Biomet Signature Solutions offering addresses the emerging need for healthcare providers to oversee and optimize post-surgical recovery outcomes in order to maximize value across the entire episode of care.”
Medtech and LDR Holdings are Zimmer Biomet’s other recent acquisitions. The Medtech acquisition allowed the company to enter the robotics surgery market. Intuitive Surgical (ISRG) is the leading player in this space, and Medtronic (MDT) is a recent entrant. Another major competitor of Zimmer Biomet in the robotics surgery space is Stryker (SYK). You can invest in the iShares Russell 1000 Value (IWD) for exposure to ZBH.
Next, let’s look at ZBH’s innovation-led growth strategy and its recent launches.