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Zimmer Biomet’s Spin Off, NewCo is Taking Over The Spinal and Dental Market

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Zimmer Biomet's spin off, NewCo is Taking Over The Spinal and Dental Market

Zimmer Biomet recently announced they will be initiating a spin-off of their spine and dental businesses into a new, independent, publicly-traded company called NewCo. Zimmer Biomet plans to have this transaction complete by mid-2022 through structures of tax redistribution of newly issued NewCo shares to ZB shareholders. 

From Seeking Alpha, the businesses that fall under the NewCo banner made up nearly 13% of Zimmer Biomet revenues over the past two years, bringing in $1.022 billion in 2019 and $897 million in 2020.

Additionally, Zimmer Biomet released news that Vafa Jamali has been appointed as CEO of NewCo. Mr. Jamali most recently served as the Chief Commercial Officer of Rockley Photonics. Prior to that, he was President of Respiratory, Gastrointestinal & Informatics (RGI) at Medtronic, responsible for the strategic direction, R&D, and global execution.  

Zimmer Biomet Market Share Impact

Zimmer Biomet held almost 9.5% share of the dental implant and final abutment market in 2020. The company was originally formed through the merger of Zimmer and Biomet in June 2015, combining the dental divisions of each company. 

Zimmer Biomet’s main portfolio of implant systems currently features the following product lines: T3®, 3.1mmD Eztetic™, Tapered Screw Vent®, OSSEOTITE®, Trabecular Metal™, and LOCATOR® Overdenture Dental Implants System. In addition to their implant products, Zimmer Biomet also offers bone regeneration products, computer-guided surgery solutions, and digital dentistry solutions through their Zfx brand. 

Register to receive a free synopsis for the US Market Report Suite for Dental Implants and the US Market Report Suite for Spinal Devices

Zimmer Biomet was the fourth-leading competitor in the U.S. spinal implant market in 2020, with approximately a 9% share. Zimmer Biomet has a well-established line of traditional fusion devices, and their main  product portfolio is offered in the cervical fixation, thoracolumbar fixation, and inter-body device markets. They will continue holding a strong position in the market by introducing new products,  like the recent CE mark approval for their Trauma Implants

According to the Zimmer Biomet CEO, “this transaction will provide greater optionality to invest more in the business while delivering a leading margin profile, and that’s an incredibly powerful lever.” With the combined value of the spinal and dental implants market reaching over $20 billion by 2022. This split allows Zimmer Biomet to solely focus on growing their orthopedics division and let NewCo focus on the Spinal and dental divisions.

Via: Zimmer Biomet 

Source: https://idataresearch.com/zimmer-biomets-spin-off-newco-is-taking-over-the-spinal-and-dental-market/

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