Can a Spin-Out Revive Zimmer Biomet’s Spine Business?

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ARTICLE SUMMARY:

While a spin-out will undoubtedly free Zimmer Biomet to commit more resources to its much larger, thriving orthopedics franchise, its spine business will face a crowded market, with a product line in need of revitalization and a commercial infrastructure that has been put to the test by the disruption.

Zimmer Biomet’s announcement February 5 that it plans to spin out its spine and dental businesses in mid-2022 didn’t surprise Wall Street, which generally hailed it as a positive move for the parent company. CEO and president Bryan Hanson has been clear about his intentions to cull underperforming assets and focus on the company’s strengths, with the goal of achieving 4-5% top line growth and 30% operating margins by 2023.

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