Zimmer Biomet Holdings, Inc. ZBH recently announced the addition of features to mymobility with Apple Watch, thus creating a first-of-its-kind remote care management system. Notably, the addition of features expands the existing collaboration between Zimmer Biomet and Apple Inc. AAPL through which the companies launched the mymobility care management system in October 2018.
For investors’ note, these features are currently being demonstrated by Apple at the virtual Worldwide Developers Conference (Jun 22-26).
With this, Zimmer Biomet aims to strengthen its musculoskeletal healthcare business across the globe.
More on mymobility System
The mymobility with Apple Watch comes with the new feature of a gait quality measurement metric and will use sensors in the Apple Watch and iPhone to passively collect patient data. The gait quality measurement feature will be available to hip and knee joint replacement patients and their healthcare providers through the mymobility digital platform later this year.
Further, the new metrics will be added to Zimmer Biomet’s OrthoIntel Orthopedic Intelligence Platform.
Significance of the Latest Features
The latest features in the mymobility system to measure gait quality will enable the healthcare providers to obtain more virtual touchpoints and real-time patient information for better treatment decisions. At the same time, patients will continue to receive connected and customizable experience throughout the entire period of care.
For investors’ note, gait analysis evaluates the manner or style of walking of an individual, usually done by observing the individual walking naturally in a straight line.
Zimmer Biomet’s management believes that the latest gait quality metrics from Apple Watch will enable healthcare providers compare patients’ progress against a database for better management of post-operative care and potentially identify issues. It is also believed that the latest features will enhance patient experience as well as lessen patient issues, without requiring additional in-office visits.
Per a report by Mordor Intelligence, the global joint replacement market is expected to witness a CAGR of approximately 4.5% between 2020 and 2025. Factors like increasing prevalence of osteoarthritis, rising cases of orthopedic injury and a growing elderly population are expected to drive the market.
Given the market potential, the addition of the latest features to Zimmer Biomet’s care management system seems to be strategic.
Overall Prospects of Zimmer Biomet
Zimmer Biomet, in 2019, pitched its plans to begin delivering 2-3% growth in 2020 and stabilize its business. To achieve the goal, the company has been progressing per its three-pillar strategy for 2020 and beyond.
The company is operating on a more comprehensive and diversified musculoskeletal portfolio and attractive cross-selling opportunities. Thus, Zimmer Biomet expects to benefit from favorable long-term trends that point toward sustained growth driven by factors like new material technologies and advances in surgical techniques, to name a few. Several strategic partnerships joining the likes of Apple also buoy optimism.
Shares of the company have gained 6.1% in the past year versus the industry’s 6.9% fall and the S&P 500’s 5.2% rise.
Zacks Rank & Key Picks
Currently, Zimmer Biomet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Quest Diagnostics Incorporated DGX and Hologic, Inc. HOLX.
Quest Diagnostics’ long-term earnings growth rate is projected at 7.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic’s long-term earnings growth rate is estimated at 7%. The company presently has a Zacks Rank #2.
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