1. Like the Johnson & Johnson of joint replacements and orthopedic surgical tools.

2. Like Medtronic but primarily focused on orthopedic implants and surgical instruments (e.g., hips, knees, spine).

• Knee Implants: Devices used for total and partial knee replacement surgeries, addressing various degenerative and traumatic conditions.
• Hip Implants: Prosthetics designed for total hip replacement and hip resurfacing procedures, restoring mobility and reducing pain.
• Spine Products: Implants and instruments for spinal fusion, deformity correction, and other treatments for a range of spinal disorders.
• Dental Implants: Comprehensive solutions for tooth replacement, including dental implants, restorative components, and digital workflow tools.
• Extremities & Sports Medicine Products: Devices and systems for surgical treatment of conditions affecting the shoulder, elbow, wrist, hand, ankle, and foot, alongside solutions for soft tissue repair.
• Trauma Products: Internal and external fixation devices, including plates, screws, and nails, used to treat bone fractures and other musculoskeletal injuries.
• Craniomaxillofacial (CMF) & Thoracic Products: Implants and instruments specifically designed for reconstructive, trauma, and corrective surgeries involving the skull, face, and chest cavity.
• Biologics & Bone Cement: Products derived from biological sources to enhance healing and regeneration, as well as bone cements used to secure orthopedic implants.

Zimmer Biomet (symbol: ZBH) primarily sells its medical devices and related products to other companies, operating on a Business-to-Business (B2B) model. Its major customers are healthcare institutions globally.

The primary categories of these customer companies include:

• Hospitals and Healthcare Systems: These are the largest purchasers of Zimmer Biomet's orthopedic reconstruction products, surgical technologies, sports medicine products, and other medical devices. They utilize these products in their operating rooms and for patient care. This category encompasses a wide range of institutions, from large university hospitals and academic medical centers to smaller community hospitals, often organized into extensive integrated delivery networks (IDNs).
• Ambulatory Surgery Centers (ASCs): With a continuing trend towards outpatient surgical procedures, Ambulatory Surgery Centers are a significant and growing customer segment. They frequently purchase devices for less complex orthopedic and sports medicine surgeries performed in an outpatient setting.
• Government Healthcare Providers: In many international markets, national health services and government-owned or managed hospitals are major customers. These entities procure medical devices through established governmental purchasing frameworks and contracts.

While Zimmer Biomet sells to "other companies" (i.e., healthcare providers and institutions), these entities are predominantly private, non-profit, or government-owned organizations. Consequently, they are typically not publicly traded companies with stock symbols that can be listed. Zimmer Biomet often engages with these customers through direct sales forces, authorized distributors, and by contracting with Group Purchasing Organizations (GPOs), which aggregate purchasing power for numerous healthcare facilities across various systems.

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Ivan Tornos, Chairman, President and Chief Executive Officer

Ivan Tornos was appointed Chairman of the Board of Directors in May 2025 and President, Chief Executive Officer, and a member of the Board of Directors in August 2023. He joined Zimmer Biomet in November 2018 as Group President, Orthopedics, and a year later became Group President, Global Businesses and the Americas. In March 2021, he was named Chief Operating Officer, responsible for overseeing all global businesses, global operations, clinical and medical education, and global R&D and New Product Development functions, including oversight of the Americas and Europe, Middle East and Africa (EMEA) regions. Prior to Zimmer Biomet, Mr. Tornos served as Worldwide President of the Global Urology, Medical and Critical Care Division of Becton, Dickinson and Company. He also held positions of increasing responsibility at C.R. Bard, including President, EMEA, and was Vice President and General Manager of the Americas Pharmaceutical and Medical/Imaging segments of Covidien International. Additionally, he served as International Vice President of Business Development and Strategy with Baxter International Inc.

Suketu Upadhyay, Chief Financial Officer and Executive Vice President, Finance, Operations & Supply Chain

Suketu Upadhyay was appointed Chief Financial Officer and Executive Vice President, Finance, Operations & Supply Chain in August 2023, expanding his responsibilities to include global operations and supply chain functions. He initially joined Zimmer Biomet in 2019 as Executive Vice President and Chief Financial Officer. Before Zimmer Biomet, he was Senior Vice President, Global Financial Operations at Bristol-Myers Squibb Company from November 2016 to June 2019. He also served as Executive Vice President and Chief Financial Officer of Endo International plc from September 2013 to November 2016. Earlier in his career, Mr. Upadhyay held roles at Becton, Dickinson and Company (BD), including Interim Chief Financial Officer, Chief Accounting Officer, and CFO of International, and leadership roles at AstraZeneca and Johnson & Johnson. He began his career in public accounting with KPMG and holds CPA and CMA designations. He also serves on the board of directors of Vertex Pharmaceuticals Incorporated and CSC (Corporate Services Company), a privately held business solutions company.

Wilfred van Zuilen, Group President, Europe, Middle East and Africa

Wilfred van Zuilen was appointed Group President, Europe, Middle East and Africa (EMEA), in September 2023. He joined Zimmer Biomet in June 2021 as President, EMEA, and is responsible for sales, marketing, and distribution in the region, as well as leading certain global R&D projects. Previously, Mr. van Zuilen was Regional Vice President, North Western Europe at Medtronic.

Shaun Braun, Senior Vice President, Chief Information and Technology Officer

Shaun Braun serves as Senior Vice President, Chief Information and Technology Officer. He joined Zimmer Biomet in July 2019 as Senior Vice President, Chief Digital Officer, and assumed his current role in March 2023. Prior to Zimmer Biomet, he spent 19 years at Medtronic, where he held various IT leadership roles, including Vice President, Global Commercial, Digital & Data Technology, and Vice President, Global Enterprise & Digital Transformation.

Jahanzeb Noor, Senior Vice President, Chief Strategy, Innovation and Business Development Officer

Jahanzeb Noor is the Senior Vice President, Chief Strategy, Innovation and Business Development Officer. He joined Zimmer Biomet in May 2022. Prior to this role, he was a Partner at McKinsey & Company, specializing in the medical device sector. He brings extensive experience in strategy, mergers and acquisitions, and business development within the healthcare industry.

The key risks to Zimmer Biomet's business include product liability and regulatory scrutiny, intense competition and pricing pressure, and potential supply chain and manufacturing disruptions.

Product Liability and Regulatory Scrutiny

Zimmer Biomet faces significant risks related to product liability, including ongoing lawsuits and recalls of certain medical devices. Specifically, the company has encountered legal challenges and warnings from the U.S. Food and Drug Administration (FDA) concerning its CPT Hip System, which has been linked to an increased risk of thigh bone fractures. Allegations against the company include defective product design and a failure to adequately warn consumers and healthcare providers about potential risks associated with these implants. Beyond specific product issues, Zimmer Biomet has a history of receiving FDA Form 483s, indicating observations of non-compliance with quality control and manufacturing process regulations at its facilities, with some issues dating back several years and requiring substantial remediation efforts.

Competition and Pricing Pressure

The company operates in a highly competitive medical technology industry, where rivals vie for market share based on factors such as technology, innovation, quality, customer service, and pricing. Zimmer Biomet has experienced challenges in closing performance gaps in the global hip and knee replacement markets, partly due to the accelerating adoption of competitor robotic systems, such as Stryker's MAKO. Furthermore, the business is subject to downward pressure on pricing due to efforts by third-party payors and government healthcare systems to contain costs by limiting coverage and reducing reimbursement rates for medical products. International markets, including China, have implemented volume-based procurement processes that further decrease product prices, impacting Zimmer Biomet's profitability. Increased operational expenditures and tariffs also contribute to pressure on profit margins.

Supply Chain and Manufacturing Disruptions

Zimmer Biomet has faced and continues to be susceptible to risks associated with its supply chain and manufacturing operations. Past issues have included instances of product shortages, an inability to meet customer demand, and compromises in product quality due to high demand. In 2016, FDA violations related to quality control and supply chain management led to a decline in market growth and prompted a $170 million investment to optimize manufacturing and quality systems. The company's reliance on a concentrated number of manufacturing plants for specific product lines globally makes it vulnerable to interruptions. Moreover, the complex supply chain and dependence on specialized third-party suppliers for critical components mean that disruptions, such as material shortages and sterilization delays, can significantly impact production schedules and costs.

The increasing shift of orthopedic procedures to Ambulatory Surgical Centers (ASCs) and other outpatient settings. This trend favors lower-cost, simpler, and more efficient device solutions tailored for a high-volume, cost-sensitive environment, potentially enabling competitors to gain market share with specialized offerings that challenge Zimmer Biomet's traditional hospital-centric business model and product portfolio.

The emergence of highly advanced, AI-driven surgical platforms from technology giants or innovative startups that could establish themselves as foundational operating systems for surgery. Such platforms could offer superior pre-operative planning, intra-operative guidance, and outcome prediction, potentially commoditizing traditional implant hardware and shifting power away from device manufacturers like Zimmer Biomet to the platform providers.

Zimmer Biomet (ZBH) operates in several significant addressable markets within the musculoskeletal healthcare industry. Here's an overview of the estimated market sizes for their main products and services:

• Global Knee Replacement Market: The global knee replacement market was valued at approximately USD 8.96 billion in 2024, with projections to reach USD 13.17 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.0%. North America holds a dominant share of this market, accounting for 50.89% in 2024. Other estimates place the global market at USD 10.97 billion in 2024, with North America holding a 40.2% market share.
• Global Hip Replacement Market: The global hip replacement market was valued at around USD 7.9 billion in 2024 and is anticipated to reach USD 11.4 billion by 2034, with a CAGR of 3.9%. North America led this market with a 50.6% revenue share in 2024, with the U.S. alone valued at USD 3.84 billion in the same year. Another source estimates the global market at USD 9.1285 billion in 2024, projected to grow to USD 13.7224 million by 2034, with North America holding 49.1% of the worldwide market share in 2024.
• Global Shoulder Replacement Market: The global shoulder replacement market was valued at USD 2.66 billion in 2024 and is expected to grow to USD 4.69 billion by 2033, demonstrating a CAGR of 6.5%. North America is a significant contributor to this market.
• Global Spinal Implants and Devices Market: This market was estimated at USD 13.91 billion in 2024 and is projected to reach USD 23.13 billion by 2033, with a CAGR of 6.0%. North America dominated the global market with a revenue share of 47.82% in 2024. Another report indicates the market size at USD 14.16 billion in 2024, expected to reach USD 24.50 billion by 2034, with North America accounting for USD 6.50 billion in 2023.
• Global Dental Implants Market: The global dental implants market was valued at USD 6.8 billion in 2024 and is estimated to reach USD 9.8 billion by 2033, growing at a CAGR of 4.16%. North America currently dominates this market, holding over 36.8% of the market share in 2024. Another estimate for the global market in 2024 is USD 6.7 billion, with a projected growth to USD 10.48 billion by 2030.
• Global Orthopedic Surgical Robots Market: The global orthopedic surgical robots market was valued at USD 1.7 billion in 2024 and is expected to grow from USD 2 billion in 2025 to USD 8.3 billion in 2034, at a strong CAGR of 17.2%. North America held the largest share of 41.9% in 2024, with the U.S. market alone accounting for USD 695.5 million in the same year. Other data suggests the market size was USD 7.29 billion in 2024, expected to reach USD 45.76 billion by 2032, at a CAGR of 25.80%, with the U.S. capturing 78.4% of the North American market in 2024.

Zimmer Biomet (ZBH) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and product advancements. The company's forward guidance and commentary from recent earnings calls highlight a focus on innovation, technological integration, and enhanced market penetration.

Here are 3-5 expected drivers of future revenue growth for Zimmer Biomet:

1. New Product Innovation and Accelerated Adoption: Zimmer Biomet anticipates significant revenue growth from its robust innovation pipeline, particularly the continued adoption of recently launched products and forthcoming "new-to-the-world" technologies. The company has seen strong performance from its "Magnificent Seven" new products, which are driving accelerated adoption in its U.S. business. Key product advancements include Persona OsseoTi for knees and Z1, HAMMR, and OrthoGrid in hips. Furthermore, the upcoming launch of the iodine-treated hip, the world's first orthopedic implant with Iodine Technology designed to inhibit bacterial adhesion, is expected to be a meaningful revenue contributor starting in 2026, following its planned launch in late 2025.
2. Expansion of Robotics and Digital Technologies: The integration and adoption of advanced robotic and digital technologies are crucial for Zimmer Biomet's future growth. Strong placements of its ROSA robotic systems have been a significant driver, especially in the U.S. The company is also looking forward to the launch of the world's first semi-autonomous robot with Persona implants in early 2027, a result of its acquisition of Monogram Technologies, with a fully autonomous platform anticipated in late 2027 or early 2028.
3. Strategic Acquisitions and Diversification into Higher-Growth Markets: Zimmer Biomet has engaged in strategic acquisitions, such as Paragon 28 and Monogram Technologies, which are expected to yield meaningful long-term growth by diversifying its portfolio and accelerating revenue in higher-growth areas. The company's strategy involves expanding its global presence to address demand in the musculoskeletal space and strengthening its foothold in international developed and emerging markets.
4. Improved Commercial Execution and Market Penetration: The company is focused on enhancing commercial execution through initiatives such as new sales leadership for Ambulatory Surgical Centers (ASCs) and key account management, alongside sales force specialization for high-growth categories like robotics and SCT. These efforts are aimed at maximizing visibility, consistency, and accountability across its U.S. businesses and driving sales excellence.

Share Repurchases

• In May 2024, Zimmer Biomet's board approved a new stock repurchase authorization of up to $2 billion.
• In 2024, the company executed approximately $868.0 million to $870 million in share repurchases to return cash to investors and limit dilution from stock issuances and acquisitions.
• As of December 31, 2024, $1.25 billion remained authorized under the share repurchase program.

Share Issuance

• Zimmer Biomet's share repurchase programs are designed to minimize dilution from stock issuances and reduce the overall share count over time.
• Shares outstanding have shown a declining trend over the last few years, with 204 million shares outstanding in 2024, representing a 2.77% decline from 2023.
• The company expects fully diluted weighted average shares outstanding to be approximately 201 million shares for the full year 2025.

Outbound Investments

• Zimmer Biomet made strategic acquisitions, including Embody in early 2023 for approximately $155 million, to enhance its portfolio in soft-tissue healing solutions.
• In 2024, the company acquired Video Interventionnelle Medicale Scientifique (VIMS) for advanced camera technology and sports medicine implants, and a major distributor in the EMEA market.
• Looking ahead, definitive agreements were announced to acquire Monogram Technologies for an upfront payment of approximately $177 million (equity value) to expand its robotics suite, and Paragon 28, Inc. to enter the foot and ankle orthopedic segment.

Capital Expenditures

• Zimmer Biomet's capital expenditures averaged $456.2 million from fiscal years 2020 to 2024.
• Capital expenditures showed variability, peaking at $602.8 million in December 2023 and reaching a 5-year low of $370.9 million in December 2020.
• Primary focus areas for capital expenditures include investments in innovation, research and development programs, and enhancing its robotics and digital solutions like the ROSA Robotics platform.