Zimmer Biomet Signs Definitive Agreement to Acquire OrthoGrid Systems, Inc.
Rhea-AI Summary
Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) has announced a definitive agreement to acquire OrthoGrid Systems, Inc., a privately-held medical technology company specializing in AI-driven surgical guidance systems for total hip replacement. The acquisition includes OrthoGrid's Hip AI® platform, two additional FDA-cleared orthopedic applications, and over 40 patents.
OrthoGrid's fluoroscopy-based surgical guidance system offers real-time X-ray imaging, improving surgical accuracy and efficiency without the need for preoperative CT scans. The Hip AI system provides real-time image analysis, automated measurements, and guidance on optimal cup placement, allowing surgeons to tailor the system to their specific techniques.
The acquisition is expected to close by the end of Q4 2024, subject to customary conditions.
Positive
- Acquisition expands Zimmer Biomet's hip portfolio with AI-driven surgical guidance technology
- OrthoGrid's Hip AI system improves surgical accuracy and efficiency without preoperative CT scans
- Acquisition includes over 40 patents and two additional FDA-cleared orthopedic applications
- Hip AI system allows customization to align with specific surgeon techniques and workflows
Negative
- None.
Insights
The acquisition of OrthoGrid Systems by Zimmer Biomet is a strategic move to enhance their hip surgery portfolio. OrthoGrid's Hip AI system, utilizing fluoroscopy-based surgical guidance, addresses key challenges in total hip replacement procedures:
- Eliminates the need for preoperative CT scans, reducing patient radiation exposure and streamlining OR workflow
- Provides real-time image analysis and automated measurements, potentially improving surgical accuracy
- Offers a customizable platform, aligning with surgeons' specific techniques
This acquisition could strengthen Zimmer Biomet's competitive position in the growing market for AI-driven surgical guidance systems. However, the impact on revenue and market share will depend on successful integration and adoption by surgeons.
While financial details are not disclosed, this acquisition aligns with Zimmer Biomet's strategy to expand its technological capabilities. Key financial considerations include:
- Potential for increased market share in the hip replacement segment
- Future revenue growth from OrthoGrid's AI-powered solutions
- Possible margin expansion if the technology proves cost-effective for hospitals
Investors should monitor the integration process and adoption rates of Hip AI. The 40+ patents acquired could provide long-term value and competitive advantage. However, the full financial impact may not be immediate, as the deal is expected to close by Q4 2024.
As an orthopedic surgeon, I see significant potential in OrthoGrid's Hip AI system:
- Real-time fluoroscopy guidance can enhance precision in cup placement and leg length measurements
- Reduced reliance on preoperative CT scans could improve OR efficiency and reduce patient radiation exposure
- Customizable workflow aligns with the varied preferences of hip surgeons
However, the learning curve and integration into existing surgical practices will be important for widespread adoption. Zimmer Biomet's extensive distribution network could accelerate the uptake of this technology, potentially improving outcomes in hip replacement surgeries.
Acquisition Expands Hip Portfolio with Artificial Intelligence-Driven Surgical Guidance System
WARSAW, Ind., Aug. 7, 2024 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that it signed a definitive agreement to acquire OrthoGrid Systems, Inc., (OrthoGrid) a privately-held medical technology company focused on artificial intelligence (AI)-driven surgical guidance systems for total hip replacement. The acquisition includes OrthoGrid's AI-powered, fluoroscopy-based surgical assistance platform Hip AI®, as well as two additional FDA-cleared orthopedic applications and over 40 patents.
Surgical guidance systems often rely on CT-based imaging which can result in a backlog of CT exams and, in turn, impact operating room (OR) workflow and efficiency. Fluoroscopy-based surgical guidance is a technique that uses real-time X-ray imaging to help guide procedures and improve surgical accuracy and safety. Unlike CT scans, fluoroscopy-based systems do not require preoperative preparation, allow real-time navigation with up-to-date images, and provide convenient bedside access to motion imaging.
"OrthoGrid's AI systems address the rapidly growing market demand for fluoroscopy-based surgical guidance solutions while strengthening our portfolio of hip offerings that drive intraoperative efficiencies and improve the quality of life for patients," said Jim Lancaster, President, Recon and Global Headquarters Executive Director at Zimmer Biomet.
OrthoGrid's Hip AI system provides real-time image analysis, automated measurements of leg length and offset, and guidance on optimal cup placement while maintaining a small OR footprint. In addition, surgeons can tailor Hip AI to align with their specific technique and workflow.
"We pride ourselves on being customer-centric and Hip AI exemplifies our commitment to offer solutions that meet the specific needs of each surgeon," added Lancaster.
"The agreement with Zimmer Biomet, a global leader in orthopedics, will significantly accelerate our shared goal of addressing challenging orthopedic problems with innovative technology solutions," said Edouard Saget, Co-Founder and Co-Chief Executive Officer of OrthoGrid.
"While early, the launch of our AI-driven intraoperative surgical guidance platform has received positive feedback from hip surgeons across the
The transaction is subject to customary closing conditions and is expected to be completed by the end of the fourth quarter of 2024.
About Zimmer Biomet
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.
With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.
For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow Zimmer Biomet on Twitter at www.twitter.com/zimmerbiomet.
About OrthoGrid Systems, Inc.
OrthoGrid, founded in 2012, provides intraoperative alignment navigation via procedure-specific musculoskeletal applications for THA, Hip Preservation, and Trauma. Its AI-enabled surgical guidance technology imports images from C-arm image intensifiers to reveal and correct fluoroscopic distortion and helps surgeons achieve desirable and reproducible surgical outcomes. OrthoGrid is based in
Cautionary Statement Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terms such as "may," "will," "expects," "believes," "aims," "anticipates," "plans," "looks forward to," "estimates," "projects," "assumes," "guides," "targets," "forecasts," "seeks" or the negatives of such terms or other variations on such terms or comparable terminology. Forward-looking statements include, but are not limited to, statements concerning Zimmer Biomet's anticipated acquisition of OrthoGrid Systems, Inc. and the expected timing of closing; the expected timing and conditions, if any, of regulatory approvals associated with the acquisition; the benefits of such acquisition; revenue projections; product portfolio and performance; competitive offerings; market performance; business plans relating to OrthoGrid Systems, Inc. and other aspects of Zimmer Biomet's business and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially. Some of these risks and uncertainties include the potential for legal and proceedings or related to the contemplated transactions and the other risks and uncertainties in Zimmer Biomet's periodic reports filed with the Securities and Exchange Commission (SEC). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be set forth in our periodic reports. Accordingly, such forward-looking statements speak only as of the date made. Readers of this communication are cautioned not to place undue reliance on these forward-looking statements, since, while management believes the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in this communication.
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SOURCE Zimmer Biomet Holdings, Inc.
FAQ
What company is Zimmer Biomet (ZBH) acquiring?
What is the main product Zimmer Biomet (ZBH) will gain from the OrthoGrid acquisition?
When is the Zimmer Biomet (ZBH) acquisition of OrthoGrid expected to close?
How does OrthoGrid's Hip AI system benefit surgeons and patients?
