05 Feb 2021
Posted in Medical Devices
Zimmer Biomet Q4 financials signal recovery of dental market amidst news of spin-off
Following the recent release of Q4 financial information and news of a spin-off of the Spine and Dental business segments from Zimmer Biomet;
Dominic Tong, Medical Device Analyst at GlobalData, a leading data and analytics company, offers his view:
“Zimmer Biomet’s recently disclosed its Q4 and full year 2020 financial information, showing that elective procedures like dental procedures have significantly recovered. This is promising for the sales of other medical devices used in elective procedures, like neuromodulation devices.
“For Zimmer Biomet, full year Dental, Spine, & Craniomaxillofacial and Thoracic devices segment net sales was down 10.1% compared to 2019. However, the same segment reported a growth in net sales of 2.6%. Given that other major players in the Dental space reported sales decreases of over 30% in Q2, when elective procedures were halted, there has been significant recovery in this segment.
“Zimmer Biomet also announced that it will spin off its Spine and Dental segments into an independent, publicly-traded company. This move will allow Zimmer Biomet to focus on high-growth areas like Hip and Knee reconstructions, while allowing the new company to focus exclusively on the Dental and Spine treatment space.
“According to GlobalData, Zimmer Biomet is currently a market leader in the Dental Materials, Dental Membranes, and Dental Bone Graft Substitutes & Regenerative Materials spaces, holding over 15% market share in each market. This move will allow the newly spun-off company to focus on growing its hold in these areas, while expanding into other dental markets.”