Zimmer Biomet (ZBH) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic transformation and operational progress

• Achieved a 6.5% CAGR over five years, with annual growth rates of 6.5% in 2022, 7.5% in 2023, and 5% in 2024 despite ERP challenges.

• Maintained #1 global position in hips and knees, improving market share and resolving all FDA warning letters and DOJ monitorship.

• Divested dental and spine businesses, increasing weighted average market growth rate from 3% to 4%.

• Employee engagement and retention improved, earning a spot on Forbes' World's Best Employers list in 2025 and lowering turnover.

• Focused on building durable go-to-market models in the U.S. and internationally, targeting 10-12 core countries for 95% of revenue.

Innovation and product portfolio

• Launched over 50 new products in three years, tripling previous launch rates, and closed gaps in the core portfolio.

• Addressing key challenges: awareness, infection, efficiency, and outcomes, with a major focus on infection prediction and prevention.

• Launching the first iodine-coated device in Japan in late 2025, with U.S. launch to follow.

• Expanded robotics and smart implant offerings, including the only FDA-approved mixed reality navigation and proprietary platforms.

• The "Magnificent Seven" products, including Persona OsseoTi and Oxford Partial Cementless, drive 80% of innovation growth.

Sales model transformation and execution

• Accelerating the shift to a specialized, direct sales force in the U.S. over the next two years, aiming for full channel ownership.

• Increasing investment in ASCs, robotics, and sports medicine, with 3.5x to 5x more specialized reps and 4x more ASC-dedicated staff by 2027.

• U.S. sales reps currently average seven cases per week, compared to competitors' 14-16; focus is on increasing productivity.

• International strategy centers on best-in-class execution in 10-12 key geographies.

• Short-term disruption expected, but mid- to long-term acceleration anticipated from sales model changes.