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Zimmer Biomet Holdings, Inc. ZBH recently received Food and Drug Administration ("FDA") 510(k) clearance for the OsseoFit Stemless Shoulder System for total shoulder replacement. The system is designed to match the natural humeral (upper shoulder bone) anatomy to optimize anatomical fit while maximizing the preservation of healthy bone.
The OsseoFit Stemless Shoulder System expands the company's expansive total shoulder portfolio. The company plans to launch the system commercially in the first quarter of 2025.
ZBH’s Likely Stock Trend Following the News
Following the announcement, shares of ZBH moved 0.1% south to $106.74 on Friday. The company has been gaining synergies from its expanding shoulder portfolio, which is part of its S.E.T. business. Zimmer Biomet is currently on a diversification journey with its S.E.T. business. It has strategically grown S.E.T. sales by at least mid-single digits in recent times. Henceforth, we expect the latest FDA clearance to motivate market sentiment in favor of ZBH stock in the upcoming days.
ZBH currently has a market capitalization of $22.09 billion. Its earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 1.76%.
More on ZBH’s OsseoFit Stemless Shoulder System
OsseoFit Stemless Shoulder System integrates with Identity Humeral Heads with Versa-Dial Technology for infinite offset placement as well as the Alliance Glenoid for a broad range of glenoid options to adapt to a patient's unique anatomy. The system combines an anatomically shaped implant to support bone conservation. It is designed for stable initial fixation with proprietary OsseoTi Porous Metal Technology for biological fixation.
The anatomically designed left or right-sided anchor implants feature fins that create a press-fit during insertion and contain fully porous windows. The fin geometry and anchor spacing of the implant determine proper orientation and fit into the natural bone and help avoid cortical impingement while reaching dense bone areas.
In addition, the design includes strategically located anterior reattachment suture holes on the anchor to facilitate subscapularis repair. The system is available in a singular instrument tray to maximize workflow and sterile process efficiency, fitting nicely in a variety of settings, including ambulatory surgical centers.
Industry Prospects Favor ZBH
Per a report from Maximize Market Research, the total shoulder replacement market was valued at $1.66 billion in 2023 and is expected to grow at a compound annual rate of 7.6% from 2024 to 2030, reaching nearly $2.77 billion. The increasing incidence of arthritis is the major contributor to disability among adults and the geriatric population. The growing global geriatric population and increased susceptibility to osteoarthritis are key market growth drivers.