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Zimmer Biomet Chosen as IUIH Preferred Orthopaedic Partner

Zacks Equity Research

Zimmer Biomet Holdings, Inc. ZBH, a major player in musculoskeletal healthcare, recently announced that it has been selected as an Indo UK Institutes of Health (IUIH) preferred orthopaedic partner.

This partnership aims to offer enhanced quality and affordable musculoskeletal healthcare to almost 400 million people through the establishment of IUIH's 11 centers of excellence (Medicities) in major states across India.

This 20-year collaboration was announced by the IUIH Medicities Program during its one-year anniversary event at the India-UK Technology Summit. The summit was inaugurated by the Prime Ministers of India and U.K. 




The Medicities program will provide patients throughout India and abroad access to top-notch clinical services and expertise in modern, technology-led hospitals.  In addition, each Medicity will establish a medical college, nursing college, post-graduate training center, global standard research and development center and medical manufacturing facilities.

Per the partnership, Zimmer Biomet will commit to an equity investment in UK Global Healthcare Limited, the parent company of IUIH. The company will also supply and distribute quality large joint implants, trauma products and small fixation devices for replacement surgery.The partnership will also execute the Rapid Recovery and Theatre Care Rapide programs to optimize patient-focused processes and protocols in hospitals and operating rooms across the 11 Medicities. The tie-up will also aid the establishment of the Zimmer Biomet Institute of India – a modern medical training and education facility.   

Over the recent past, Zimmer Biomet has been working toward gaining traction in the emerging markets of Asia that offer long-term growth opportunities. The company’s strategic investments in these regions over the past several quarters to improve operational and sales performance are yielding results. Management believes that the newly created alliance would significantly contribute to the delivery of affordable care in an emerging market like India, by reducing approximately 25% of orthopaedic care costs.

As per a Medgadget report, the global orthopedic devices market has been forecasted to grow at a CAGR of 4.57% during the 2016–2020 period. This opens up scope for Zimmer Biomet to gain further traction in the growing but still untapped orthopedic markets of highly populated emerging nations. We are also hopeful that the latest partnership to serve India will boost the company’s forthcoming quarter results.  

Zacks Rank & Key Picks

Zimmer Biomet currently carries a Zacks Rank #4 (Sell). Better-ranked medical stocks are NxStage Medical Inc. NXTM, Baxter International Inc. BAX and Bovie Medical Corporation BVX. NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NxStage Medical surged 28.4% in the last one year compared to the S&P 500’s 5.6% over the same period. The company has a four-quarter average positive earnings surprise of 50.00%.

Baxter International rallied 22.9% over one year, much higher than the S&P 500’s 5.6%. It has a trailing four-quarter average positive earnings surprise of 27%.

Bovie Medical recorded a 114.8% gain in the past one year, way better than the S&P 500’s 5.6%. The company has a trailing four-quarter positive average earnings surprise of 28.7%.

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