About Zimmer Biomet Holdings

Zimmer Biomet Holdings, Inc. (Zimmer Biomet) operates as a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. The company designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; craniomaxillofacial and thoracic (CMFT) products; surgical products; and a suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. The company collaborates with healthcare professionals around the globe to advance the pace of innovation. The company's products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Customers, Sales and Marketing f The company's primary customers include orthopedic surgeons, neurosurgeons, and other specialists, healthcare institutions, stocking distributors, healthcare dealers and, in their capacity as agents, healthcare purchasing organizations or buying groups. These customers range from large multinational enterprises to independent clinicians. The company markets and sells products through two principal channels: direct to healthcare institutions, such as hospitals and ambulatory surgery centers, referred to as direct channel accounts; and through stocking distributors and healthcare dealers. With direct channel accounts and some healthcare dealers, inventory is generally consigned to sales agents or customers. With sales to stocking distributors, some healthcare dealers and some hospitals, title to product passes upon shipment. Consignment sales represented approximately 85 percent of the company's net sales in 2023. The company utilizes a network of sales associates, sales managers and support personnel, some of whom are employed or contracted by independent distributors and sales agencies. The company's operating segments include the Americas; Europe, Middle East and Africa (EMEA); and the Asia Pacific. Americas The Americas operating segment is the company's largest operating segment. This segment is comprised principally of the U.S. and includes other North, Central and South American markets. This segment also includes research, development engineering, medical education and brand management for the company's product category headquarter locations. The U.S. accounted for approximately 95 percent of net sales in this region in 2023. The U.S. sales force consists of a combination of employees and independent sales agents, most of whom sell products exclusively for Zimmer Biomet. The sales force in the U.S. receives a commission on product sales and is responsible for many operating decisions. In this region, the company contracts with group purchasing organizations and managed care accounts and have promoted unit growth by offering volume discounts to customer healthcare institutions within a specified group. Generally, the company is designated as one of several preferred purchasing sources for specified products, although members are not obligated to purchase its products. EMEA: The EMEA operating segment is the company's second largest operating segment. France, Germany, Italy, Spain and the United Kingdom (the U.K.) collectively accounted for approximately 55 percent of net sales in the region in 2023. This segment also includes other key markets, including Switzerland, Benelux, Nordic, Central and Eastern Europe, the Middle East and Africa. The company's sales force in this segment consists of direct sales associates, commissioned agents, independent distributors and sales support personnel. In most European countries, healthcare is sponsored by the government and therefore government budgets impact healthcare spending, which can affect the company's sales in this segment. Asia Pacific: The Asia Pacific operating segment includes key markets, such as Japan, China, Australia, New Zealand, Korea, Taiwan, India, Thailand, Singapore, Hong Kong and Malaysia. Japan is the largest market within this segment, accounting for approximately 50 percent of the region's sales in 2023. In Japan and most countries in the Asia Pacific region, the company maintains a network of dealers, who act as order agents on behalf of hospitals in the region, and sales associates, who build and maintain relationships with orthopedic surgeons and neurosurgeons in their markets. Seasonality The company's business is seasonal in nature to some extent, as many of its products are used in elective procedures, which typically decline during the summer months. Distribution The company distributes its products both through large, centralized warehouses and through smaller, market specific facilities, depending on the needs of the market. The company maintains large, centralized warehouses in the U.S. and Europe to be able to efficiently distribute its products to customers in those regions. In addition to these centralized warehouses, the company maintains smaller distribution facilities in the U.S. and in each of the countries where it has a direct sales presence. Products The company's products include orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; CMFT products; surgical products; and a suite of integrated digital and robotic technologies. KNEES Total knee replacement surgeries typically include a femoral component, a patella (knee cap), a tibial tray and an articular surface (placed on the tibial tray). Knee replacement surgeries include first-time, or primary, joint replacement procedures and revision procedures for the replacement, repair or enhancement of an implant or component from a previous procedure. There are also procedures for partial reconstruction of the knee, which treat limited knee degeneration and involve the replacement of only one side, or compartment, of the knee with a unicompartmental knee prosthesis. The company's significant knee brands include the Persona Knee, NexGen Knee Implants, Vanguard Knee, and Oxford Partial Knee. Additionally, the company's ROSA Robot utilizes robotic technologies to assist a surgeon with implant positioning in total knee arthroplasty or partial knee arthroplasty. HIPS Total hip replacement surgeries replace both the head of the femur and the socket portion of the pelvis (acetabulum) of the natural hip. Hip procedures include first-time, or primary, joint replacement as well as revision procedures. Hip implant procedures involve the use of bone cement to attach or affix the prosthetic components to the surrounding bone, or are press-fit into bone, which means that they have a surface that bone affixes to through either ongrowth or ingrowth technologies. The company's significant hip brands include the Taperloc Hip System, Avenir Complete Hip System, Arcos Modular Hip System, and G7 Acetabular System. The company's ROSA Robot is also utilized in hip procedures. S.E.T. The company's S.E.T. product category includes sports medicine, biologics, foot and ankle, upper extremities, trauma and CMFT products. The company's sports medicine products are primarily for the repair of soft tissue injuries, most commonly used in the knee and shoulder. Sports medicine products represented 11 percent of the company's S.E.T. product category net sales in 2023. The company's biologics products are used as early intervention for joint preservation or to support surgical procedures. Biologics products represented 8 percent of the company's S.E.T. product category net sales in 2023. The company's foot and ankle and upper extremities products are designed to treat arthritic conditions and fractures in the foot, ankle, shoulder, elbow and wrist. The company's foot and ankle products represented 4 percent of its S.E.T. product category net sales in 2023. The company's upper extremities products represented 33 percent of its S.E.T. product category net sales in 2023. The company's trauma products are used to stabilize damaged or broken bones and their surrounding tissues to support the body's natural healing process. Trauma products represented 24 percent of the company's S.E.T. product category net sales in 2023. The company's CMFT product division includes face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest in order to facilitate healing or reconstruction after open heart surgery, trauma or for deformities of the chest. CMFT products represented 20 percent of the company's S.E.T. product category net sales in 2023. The company's significant S.E.T. brands include the JuggerKnot Soft Anchor System, Gel-One Cross-linked Hyaluronate, Comprehensive Shoulder, Natural Nail System, and SternaLock System. Gel-One is a registered trademark of Seikagaku Corporation. Other The company's other product category primarily includes its robotic technology, surgical and bone cement products. The company markets a collective suite of its products and technologies as the ZBEdge Platform. The ZBEdge Platform connects robotic and digital technologies together to collect data before, during and after surgery, that can deliver insights to surgeons to assist in making informed decisions on patient care. Government Regulation and Compliance In the U.S., numerous laws and regulations govern the processes by which the company's products are brought to market. These include the Federal Food, Drug and Cosmetic Act, as amended (FDCA), and associated regulations. All of the company's devices marketed in the U.S. have been cleared or approved by the FDA, except for those exempt from FDA premarket clearance and approval and those in commercial distribution prior to May 28, 1976. The FDA review may involve substantial delays that adversely affect the marketing and sale of the company's products. Most of the company's new products fall into a classification that requires the submission of a Premarket Notification (510(k)) to the FDA before it can market the new device. Other devices the company develops and markets require stringent FDA clinical investigation and Premarket Approval (PMA) requirements, including submission of clinical and laboratory data that establishes that the new medical device is safe and effective. Additionally, certain of the company's new products incorporate innovations related to artificial intelligence, machine learning and software as a medical device, which are subject to emerging FDA oversight and regulation. The company is subject to FDA Quality System regulations governing design and manufacturing practices, testing, manufacturing quality assurance, labeling and record keeping and reporting requirements for its products, which apply both to its own and to its third-party manufacturers' operations. The company is required to establish a quality system by which it monitors its (and its third-party manufacturers') manufacturing processes and maintain records that show compliance with FDA regulations and manufacturers' written specifications and procedures. The company's operations outside the U.S. are subject to the extraterritorial application of the U.S. Foreign Corrupt Practices Act (the FCPA). The company's global operations are also subject to non-U.S. anti-corruption laws, such as the United Kingdom Bribery Act. Competition In the global markets for its knees, hips, and S.E.T. products, the company's major competitors include the DePuy Synthes Companies of Johnson & Johnson, Stryker Corporation and Smith & Nephew plc. Intellectual Property The company owns or controls through licensing arrangements over 6,000 issued patents and patent applications throughout the world that relate to aspects of the technology incorporated in many of its products. History The company was founded in 1927. It was incorporated in Delaware in 2001. The company was formerly known as Zimmer Holdings, Inc. and changed its name to Zimmer Biomet Holdings, Inc. in 2015.