Japan approves first iodine-treated hip replacement system

WARSAW - Zimmer Biomet Holdings, Inc. (NYSE and SIX:ZBH), a $19.25 billion medical technology company with robust gross margins of 71.25%, announced Thursday that Japan’s Pharmaceutical and Medical Devices Agency (PMDA) has approved the iTaperloc Complete and iG7 Hip System, described as the world’s first orthopedic implants with Iodine Technology. According to InvestingPro analysis, the company maintains strong financial health with consistently profitable operations.

The new implants are designed to inhibit bacterial adhesion on the surface, addressing Periprosthetic Joint Infection (PJI), which occurs in approximately 1-2% of primary total joint arthroplasty procedures.

The technology, developed by Professor Hiroyuki Tsuchiya, Director at Yokohama Sakae Kyosai Hospital, integrates a controlled-release iodine layer through anodization and electrophoresis processes. This creates an implant that inhibits bacterial adhesion and biofilm formation during the postoperative period.

"By equipping surgeons with advanced tools to identify and address infection risks throughout the continuum of care, we’re helping drive safer surgical outcomes," said Ivan Tornos, Chairman, President & CEO of Zimmer Biomet.

The approved systems combine Zimmer Biomet’s Taperloc Complete Hip System and G7 Acetabular System with the new Iodine Technology. Iodine, a biocompatible nutrient commonly used as an antiseptic, is applied to the implant’s surface during manufacturing to inhibit biofilm formation.

PJI remains one of the most common causes for revision surgeries and a challenging complication in total joint replacement. According to information provided in the company’s press release, the mortality rate associated with PJI approaches the 5-year mortality observed in breast cancer at 11%.

The approval strengthens Zimmer Biomet’s portfolio of infection management solutions spanning prevention, detection, primary and revision products. With annual revenues of $7.83 billion and a stable business model reflected in its low stock price volatility, Zimmer Biomet continues to expand its market presence. InvestingPro subscribers can access additional insights, including exclusive ProTips and comprehensive financial analysis, through the platform’s detailed Pro Research Report, available for over 1,400 US stocks.

In other recent news, Zimmer Biomet reported second-quarter earnings that surpassed analyst expectations, driven by strong performance in its U.S. hip and knee portfolios and its global S.E.T. business. The company also raised its full-year earnings guidance, reflecting confidence in its ongoing operations. Additionally, JMP Securities maintained a Market Outperform rating for Zimmer Biomet, following the company’s 3% year-over-year revenue growth on an organic and currency-neutral basis, which exceeded consensus estimates by about 1%.

Furthermore, Stifel increased its price target for Zimmer Biomet to $118, maintaining a Buy rating after consulting with orthopedic surgeons about two of the company’s products. Rothschild Redburn also initiated coverage of Zimmer Biomet with a Buy rating and a price target of $130, highlighting the company’s potential to reaccelerate organic growth. Meanwhile, Bernstein SocGen Group raised its price target to $105, citing an improved outlook and a higher price-to-earnings multiple.

These developments underscore Zimmer Biomet’s strategic positioning in the orthopedic market and its commitment to innovation.

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