Zimmer Biomet Holdings, Inc. ZBH recently received the FDA 510(k) clearance for its Persona SoluTion Porous Plasma Spray (“PPS”) Femur. Persona SoluTion PPS Femur is a total knee implant component offering an alternative for patients with sensitivities to bone cement and/or metal.

The latest development is an addition to the company’s clinically proven Persona Knee System. The company expects to commercially launch Persona SoluTion PPS Femur in the United States 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 $110.62 yesterday. 

The company has been gaining a high level of synergies from its expanding Knees business. Per the latest update, Zimmer Biomet is continuously putting efforts into the overall shift of the company’s legacy knee systems to a fully rounded-out Persona portfolio. 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%.

About ZBH’s Persona SoluTion PPS Femur

Hypersensitivity to metal is a challenge for patients associated with a traditional cemented total knee replacement (TKR) with an implant made of cobalt-chrome (Co-Cr-Mo) alloy. When exposed to certain metals, people with these hypersensitivities can experience an inflammatory response, pain and implant loosening that may require a revision TKR. 

Persona SoluTion PPS Femur combines the company’s latest advances in cementless fixation with decades of proprietary clinical expertise in developing novel materials and surface-hardening processes. It offers cementless fixation with clinically proven PPS coating. Together, they provide initial scratch fit stability and support biological fixation through bony growth. 

Persona SoluTion PPS Femur, combined with Persona OsseoTi tibia and Vivacit-E Highly Crosslinked Polyethylene (HXLPE), minimizes the most common metal sensitizers. This is likely to elicit an immune response. The implant is made of Tivanium (Ti-6Al-4V) alloy with more than 17 years of clinical use. The Tivanium alloy is treated with the Ti-Nidium Surface Hardening Process and is compatible with Vivacit-E HXLPE articular surfaces. 

Industry Prospects Favor Zimmer Biomet

Per a report by SkyQuest, the global knee replacement market size is expected to reach $16.99 billion by 2031, at a compound annual growth rate of 5.67% during 2024-2031. Key factors responsible for the potential market growth include the rising incidence of osteoarthritis and expanding demand for joint replacement surgeries. 

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Recent Developments by ZBH

Last month, Zimmer Biomet received FDA Premarket Approval Application (“PMA”) Supplement approval for the Oxford Cementless Partial Knee. The approval is based on safety and effectiveness data from an Investigational Device Exemption study and non-clinical testing for cementless partial knee replacement. With this, Oxford Cementless Partial Knee has become the only FDA-approved cementless partial knee implant in the United States. The latest FDA PMA Supplement approval expands the company’s Knees product portfolio. 

ZBH’s Price Performance

In the past year, shares of ZBH have lost 4.5% against the industry’s 21% growth. 

ZBH’s Zacks Rank and Key Picks

ZBH currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Haemonetics HAE, Penumbra PEN and ResMed RMD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. The company’s shares have risen 1.8% compared with the industry’s 23.1% growth in the past year. Estimates for HAE’s 2025 EPS have moved north 0.4% to $4.59 in the past 30 days. 

Estimates for Penumbra’s 2024 EPS have moved north 8.1% to $2.79 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 10.54%.

Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.

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