Becker's Spine Review

25 DEVICES & IMPLANTS Hospital for Special Surgery to open additive manufacturing 3D printing lab: 5 things to know By Laura Dyrda N ew York City-based Hospital for Special Surgery and LimaCorpo- rate launched a project to develop the first provider-based additive manu- facturing 3D printing facility for custom orthopedic implants. Here are five things to know: 1. Hospital for Special Surgery began work- ing with Lima Corporate in 2016 to source patient-specific custom implants. The initial devices were intended for highly complex cases. 2. The two organizations have expanded their partnership, with Hospital for Special Surgery developing its own 3D printing lab, which Lima will operate. The organiza- tions will combine Lima's advanced tech- nology and experience with HSS clinicians' and researchers' expertise in clinical care and biomechanical engineering. "Having Lima's technology on campus will allow us to treat our patients more effec- tively with close collaboration of surgeons, engineers and custom implant manufac- turing, which is crucial when dealing with challenging conditions," said Leonard Achan, RN, chief innovation officer at HSS. 3. Patients with complex bone injuries will have access to the onsite scans and custom implants created at the lab. Also, implants created at the lab will be available to all pa- tients who need complex implants, not just HSS patients. 4. As the registered manufacturer for all devices produced at the new facility, Lima will oversee operations. 5. HSS expects to open the facility by early 2020 and serve hospitals in the Northeast region prior to expanding nationally. n Zimmer Biomet CEO Bryan Hanson: Growth in 2019 goes beyond the knee & hip markets, product launches By Laura Dyrda Z immer Biomet CEO Bryan Hanson gave a presentation at the 37th Annu- al J.P. Morgan Healthcare Conference in San Francisco Jan. 8. Mr. Hanson discussed the current state of the $7.9 billion company and where it's headed in the future. Here are seven things to know about Zimmer Biomet in 2019: 1. e company's revenue is weighted toward the knee and hip lines; it aims to di- versify further in the future. irty-five percent of the company's revenue comes from knee sales and 24 percent is attributable to hip sales; just 10 percent of the revenue comes from spine sales while dental accounts for 5 percent. However, Mr. Hanson plans to change that. Hips and knees are a slowing market, and the company is poised to grow other segments. 2. More than half — 61 percent — of company revenue comes from the Americas. Mr. Hanson says the company aims to grow revenue from other markets, includ- ing Europe which accounts for 23 percent of its revenue and the Asian Pacific accounting for 16 percent. 3. While Zimmer Biomet is a No. 1 player in the hips and knees markets, it has significantly less presence in sports medicine and trauma. Mr. Hanson sees this as an opportunity to leverage brand recognition for a deeper presence in those markets. 4. For the first year of his tenure, Mr. Hanson spent significant time examining the company's culture and making leadership changes. He restructured several aspects of the organization and appointed new leaders to align the company with its core mission and values. 5. In mid-2018, Zimmer Biomet received a warning letter from the FDA about its North Campus facility. At the conference, Mr. Hanson reiterated the compa- ny's commitment to remediation and updating the facility to align with the FDA's standards for another inspection at the end of the year. 6. Over the next year, Zimmer Biomet expects to achieve FDA clearance for the Rosa Robotic system applications in the spine and knee; the system is already approved for brain surgery applications. Aer achieving clearance, the company aims to have a limited release before rolling out a full launch at the end of the year. 7. Mr. Hanson plans to transform the company and become a top quartile per- former in total shareholder returns. "We have to stabilize the business and get 2 percent to 3 percent growth in 2020, and then focus on the five-year plan that changes the trajectory of revenue growth," he said. He sees increasing free cash flow as the ammunition to stimulate further growth. 8. In 2018, Zimmer Biomet formalized a relationship with Apple to develop an application for joint surgery patients. e company aims to double down on this collaboration and focus on the "unique ecosystem" Zimmer Biomet brings to the table. In the future, Mr. Hanson sees the company focusing more on building the customer platform than product launches. "We are moving away from product launches to solutions that will differentiate us from our competitors," he said. n

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