By the numbers
Q2 revenue: $1.94 billion
3.9% increase year over year
15.8% increase year over year
Zimmer Biomet said Wednesday it agreed to buy Orthogrid Systems, a medtech company that makes artificial intelligence-based surgical guidance systems for total hip replacement.
Salt Lake City-based Orthogrid uses fluoroscopy imaging to help surgeons track the position of an implant during a hip procedure. It also has two other Food and Drug Administration-cleared solutions for hip preservation and trauma surgeries.
By using fluoroscopy instead of CT scans, Orthogrid can offer real-time navigation and a more efficient workflow for operating rooms.
The solution will add to Zimmer’s current suite of tools for hip surgery. The company has its own hip application paired with its Rosa surgical robot that also uses fluoroscopy imaging. Zimmer additionally has a co-marketing agreement with HipInsight, which uses Microsoft Hololens 2 glasses to help surgeons visualize a patient’s pelvic anatomy during surgery.
By comparison, Stryker’s Mako total hip application uses CT imaging, while J&J’s Velys hip navigation uses fluoroscopy.
On a Wednesday earnings call, Zimmer CEO Ivan Tornos citied Orthogrid and clearances earlier this year for a triple taper hip stem and an automated hip impactor, adding that “the expectation is to grow again above market when it comes to hips and regain some of the market share that we lost over the last three years or five years.”
Zimmer did not disclose the price of the acquisition and expects the deal to close by the end of the fourth quarter.
Rosa shoulder update
Zimmer was the first company to debut a surgical robot feature for shoulder replacements with 510(k) clearance in February for its Rosa shoulder application. It’s planning a full launch later in the year, CFO Suky Upadhyay told investors.
Stryker is also working on a shoulder application for its Mako robot, which it plans to introduce before the end of 2024.
Tornos said early feedback “continues to be very compelling” and Zimmer expects Rosa shoulder cases to accelerate in the third and fourth quarters.
“In 2025, we expect Rosa Shoulder to be a very meaningful growth driver for Zimmer Biomet,” he said on the earnings call.
Zimmer has a few other robot features planned. The company is launching two Rosa products for knees, one late this year and one in early 2025, Upadhyay added.
The first offering will have different levels or workflows, smart positioning and a different auto-balance procedure, and is designed for kinematic alignment during a total knee procedure, he said. The later product will add a CT scan base for Rosa users that prefer that type of device.