Issue link: https://beckershealthcare.uberflip.com/i/1273484
21 DEVICES & IMPLANTS Zimmer Biomet posts $509M loss in Q1; expects 'significant negative impact' in Q2 By Alan Condon Z immer Biomet on May 11 posted a first-quarter net loss of $509 mil- lion, dropping from a net profit of $246.1 million for the same period last year. e company noted a steep decline in elective procedure volumes at the end of the first quarter and projected a "significant negative impact" in the second quarter. Seven things to know: 1. First-quarter net sales decreased 9.7 percent to $1.78 billion year over year. 2. e company's dental, spine and craniomaxillofacial and thoracic sales de- creased 12.4 percent to $252 million, compared to the same period in 2019. 3. Knee sales in the first quarter decreased 9.3 percent to $630 million, and hip sales fell 10.3 percent to $433 million year over year. 4. e company's sports medicine, extremities and trauma sales dropped 6.5 percent in the first-quarter to $333 million. 5. Diluted loss per share was $2.46 for the first quarter. Adjusted diluted earn- ings per share were $1.70, representing a 9.1 decrease year over year. 6. While Zimmer Biomet's first quarter financial results were severely im- pacted by COVID-19, the company's operational performance was "trending ahead of our expectations" prior to the pandemic, according to CEO Bryan Hanson. 7. Due to the uncertainty surrounding the duration of the COVID-19 pan- demic, the company did not provide a full-year financial forecast. n 'Even my customers were upset': Stryker acquired Mako amid criticism, and now the investment in robotics is paying off By Laura Dyrda S tryker CEO Kevin Lobo talked about the company's robotics strategy and the deci- sion to acquire Mako Surgical early, which propelled the company to become a market leader in orthopedic robotics, in a Chief Execu- tive report. Mr. Lobo said the $1.65 billion deal for Mako Surgical was among the most controversial deals Stryker has ever done; it was also his first big deal leading the company. "Even my customers were upset. It was a disruptive idea," Mr. Lobo said in the report. "Most of the deals we do are simple tuck-in products. They're obvious. It's a need that we have. We fill the gap. This was disruptive." Mr. Lobo said customers and consultants told him when the deal was made in 2013 that robotics wasn't needed in orthopedic surgery, and they didn't want the technology. However, Mr. Lobo made the purchase with a keen eye for the future. He saw that the future of knee surgery would de- pend on how well the knee is balanced and min- imal disruption to the soft tissue, not the implant; robotics could provide the next level of care with 3D planning technology and the ability to create a more personalized procedure. When Stryker revealed the deal, its stock price dropped 5 percent and the company faced stark criticism. However, the market and tolerance for robotics in orthopedics has changed, and Mr. Lobo said there are now around 800 Mako robots being used, with about one of three knee surger- ies being done with the robot. Now, Stryker sees its robotics offering as integral to its strategy to maintain market share. "Two of our competitors launched new knees three or four years ago, and we're taking mar- ket share from them with an older knee. Why? Because instead of investing in a new knee, we chose to invest in robotics to help put the knee in perfect balance, and we chose to invest in one component of the knee that's 3D printed so that you don't need to use bone cement when you do the procedure." n Medtronic launches cannula for balloon kyphoplasty By Alan Condon Medtronic on May 19 launched the Kyphon Assist Directional Can- nula for balloon kyphoplasty procedures. Three things to know: 1. Medtronic's balloon kyphoplasty products are intended to treat vertebral compression fractures due to osteoporosis, cancer or be- nign lesions. 2. Kyphon Assist is designed to offer physicians more directional control during balloon kyphoplasty. 3. The device can be inflated away from the lateral wall and pro- vides additional height restoration in a vertebral body, compared to a traditional balloon kyphoplasty cannula. n