Zimmer Biomet

Performance indicators

2020: 12.4% decrease in revenue, to $7.02 billion, net loss - $138.9 million

Zimmer Biomet at the end of 2020 raised $7.02 billion, which is 12.4% less than a year earlier. Excluding currency fluctuations, the decline was at 12.4%.

Sales in EMEA fell the most - by 21.3% against $1.39 billion. In the countries of the Americas, the company's turnover on an annualized basis decreased by 11%, to $4.34 billion. In the Asia-Pacific region, the figure decreased by 6%, to $1.3 billion.

Zimmer Biomet's revenue from the sale of knee replacement solutions in 2020 was $2.39 billion, which is 15.3% less than a year ago.

Revenue of Zimmer Biomet in 2020 decreased by 12.4%, to $7.02 billion, net loss amounted to $138.9 million

In the hip endoprosthesis segment, sales decreased by 9.4% to $1.75 billion. In the direction combining the development of technologies for the treatment of the spine, teeth, craniofacial and thoracic departments, there was an almost 11 percent decline in revenue, to $1.04 billion.

Another line of business of Zimmer Biomet is related to sports medicine and treatment of all kinds of injuries. Here, the annual turnover reached $1.32 billion, having decreased by 8.8% compared to 2019.

Thus, Zimmer Biomet has fallen sales of products of all categories and in all regions. The worst situation was with technologies for knee replacement in EMEA countries: here, at the end of 2020, revenues decreased by more than 26%, to $487 million.

In 2020, Zimmer Biomet registered a net loss of $137.4 million, while a year earlier the company's net profit exceeded $1.13 billion.

As of December 31, 2020, cash and cash equivalents in the amount of $802.1 million accumulated on the balance sheet of Zimmer Biomet. Cash received from core activities in 2020 exceeded $1.2 billion, and free cash flows were measured at $795.3 million.^[1]

History

2024:3% staff cut due to lack of money

On February 8, 2024, medical device manufacturer Zimmer Biomet announced a reorganization aimed at improving the financial situation. This program will reduce global headcount by approximately 3%.

We initiated a global restructuring program to optimize the cost base and improve the efficiency of the entire company. These actions are aimed at ensuring growth and increasing profitability, Zimmer Biomet said in an official statement.

Zimmer Biomet

As of the beginning of 2023, the total staff of Zimmer Biomet exceeds 18 thousand employees. Thus, the layoffs will affect approximately 540 employees. We are talking primarily about employees of back offices who do not directly interact with customers. Reduced employees will receive cash compensation and other due payments. The reorganization is expected to deliver savings of approximately $200 million through 2025. In addition, as noted, Zimmer Biomet will take a number of other measures aimed at reducing costs.

Restructuring the company is not easy. But in this situation, this must be done, - said Ivan Tornos, President and CEO of Zimmer Biomet.

According to him, the changes being implemented will help simplify the structure of the company and allow it to invest in the most promising areas that create maximum value for customers. Until 2025, Zimmer Biomet plans to launch about 40 new products in various areas. One key area of focus is hip surgery. In addition, the company intends to bring a surgical robot to the market for shoulder operations: it is assumed that this system will debut in 2024.^[2]

2023: Ossis acquisition

On May 1, 2023, Zimmer Biomet Holdings announced a final agreement to acquire medical device maker Ossis. Read more here.

2021

Recall of defective neurosurgeon robots

On October 29, 2021, information appeared that Zimmer Biomet was recalling defective robot neurosurgeons Rosa One 3.1 Brain Application for robot-assisted neurosurgical procedures, this review was attributed to class I. In total, three complaints were filed about a problem with the device, with no deaths or injuries reported. Read more here.

Creation of a company for the production of technologies for the treatment of the spine and teeth

In early February 2021, Zimmer Biomet announced its intention to create a new company, ZimVie, which will specialize in the production of technologies for the treatment of the spine and teeth. Zimmer Biomet is set to implement the plan by mid-2022. Read more here.

2020

Purchase of open chest instrument manufacturer A&E Medical

In early December 2020, Zimmer Biomet signed an agreement to buy A&E Medical, a manufacturer of open chest surgery tools, for $250 million. A&E Medical is believed to be operating in an extremely fast growing market and the acquisition of this company will generate excellent revenue for Zimmer Biomet in the future. Read more here.

Fine for defective hip implants M2a Magnum

At the end of November 2020, a US federal court ordered Zimmer Biomet to pay $21 million to the Bayesoa family couple and another $3.55 million to the Nicholsons for the release of defective hip implants M2a Magnum. Zimmer Biomet officials were "disappointed by the inconsistent jury verdict" in the first case, a jury verdict in the second case they said "contradicted the evidence presented in court." Read more here.

Recall of defective orthopedic implants due to increased endotoxin content

In mid-July 2020, it became known that Zimmer Biomet is recalling polyethylene orthopedic implants sold in Europe due to increased endotoxin content. The volume of recalled products is unknown. Read more here.

Application for defective temporary knee prostheses after the release of 230,000 devices

In mid-March 2020, Zimmer Biomet warned users of adverse events that may occur when using StageOne and StageOne Select disposable cement spacer molds due to insufficient cleaning and inadequate monitoring. Read more here.

2019: Selling machinery in hospitals through bribes

In mid-October 2019, the Brazilian Federal Court of Appeal once again considered the case of bribery of third parties who distributed the Zimmer Biomet technique in hospitals due to bribery of chief doctors. One of the former employees of Zimmer Biomet, Alejandro Yeatts, accused the company of libel for bringing him to justice in a bribery case, but the court rejected his application.

In 2008, Biomet discovered that its distributor in Brazil, Sergio Galindo, was bribing hospitals to distribute products. The company severed ties with Galindo and his partners, including South American business manager Alejandro Yates, according to court documents. However, Galindo's firm still owned documents for the sale of Biomet products in Brazil and required the company to enter into a new deal. Biomet turned down Galindo and hired new distributors, but they continued to interact directly or indirectly with people implicated in the bribery case, including Galindo and Yates.

Brazilian Federal Court of Appeal once again considered the case of bribery of third parties distributing Zimmer Biomet technique in hospitals due to bribery of chief doctors

In 2012 and 2015, Biomet paid more than $52 million for violations of the Foreign Corruption Act as a result of a large-scale investigation, during which the Ministry of Justice asked manufacturers of medical devices to evaluate their foreign channels for signs of bribery. Among other things, Biomet fired Yates and also added his name to a "list of individuals who pose significant and unacceptable regulatory risks.

Yetts sued Biomet in October 2016, alleging the company slandered him. However, the Brazilian Federal Court of Appeal ruled that Yates' inclusion on the unreliable list was sufficiently justified and not subject to cancellation through the courts.^[3]

2018

Former top manager of Zimmer Biomet spoke about the hostile working environment and violations in the company

At the end of November 2018, the former top manager of Zimmer Biomet spoke about the hostile working environment and violations in the company. Read more here.

Zimmer Biomet will adapt Apple Watch for rehabilitation after joint replacement

On October 18, 2018, Apple partnered with Zimmer Biomet to use the branded Apple Watch to rehabilitate patients who have undergone hip or knee replacements. Read more here.

2017

Brian Hanson is the new CEO of Zimmer Biomet

In December 2017, former Medtronic top manager Brian Hanson headed Zimmer Biomet Corporation. Read more here.

Fine of 1 million rubles for incorrect packaging of the endoprosthesis

In December 2017, the Russian subsidiary of Zimmer was fined 1 million rubles for importing an incorrectly packed component of the NexGen endoprosthesis into the territory of the Russian Federation.

From July to September 2017, Roszdravnadzor conducted an audit, during which it found in five imported medical devices "NexGen Extension Leg (Nex Jen) direct 15.0x75 mm" manufactured by the United States with a total value of 29.9 thousand rubles the absence of instructions in Russian, as well as the presence of modernized packaging not taken into account in the product registration certificate .

Zimmer Office

According to the results of the examination of quality, efficiency and safety conducted by the Federal State Budgetary Institution VNIIIMT of Roszdravnadzor, the selected samples of the medical device NexGen Extension Leg (Nex Jen) straight 15.0x75 mm did not meet the requirements of the registration documentation set No. FSZ 2011/09139 of the 15.11.2016 in terms of packaging, the agency said in a statement.

As a result, the component of the NexGen endoprosthesis, according to which claims were made, was recognized by Roszdravnadzor as poor-quality, and in relation to the Zimmer CIS company , a protocol was drawn up on an administrative offense under Article 2 of Art. 6.33 of the Administrative Code of the Russian Federation - "Circulation of falsified, counterfeit, poor-quality and unregistered medicines, medical devices." 

The Moscow Arbitration Court ruled to fine Zimmer in the amount of 1 million rubles.

In April 2016, the Guild of Manufacturers of Medical Goods and Services of the Moscow Chamber of Commerce and Industry (MTPP) sent an appeal to the then Minister of Economic Development of the Russian Federation Alexei Ulyukaev, in which she asked to urgently adjust the rules for countering the circulation of falsified, counterfeit and low-quality medical devices and equipment. Clinics fear that due to the new norms they will lose their working medical equipment and will be forced to compensate for the costs of new devices by raising prices for medical services.^[4]

2015: Zimmer completes $13.4 billion Biomet takeover

On April 24, 2014, it was announced that Zimmer had agreed to purchase Biomet Inc. for $13.4 billion. In October of that year, EU antitrust authorities launched an investigation into the deal. On June 24, 2015, Zimmer completed the acquisition of Biomet, resulting in the formation of Zimmer Biomet Holdings holding.

Notes