In 2014, Zimmer Spine had a huge year. This was evident at November's North American Spine Society (NASS) Annual Meeting, where the company showcased 12 new spine technologies launched throughout 2014 to grow their presence and reputation in the market place.
So what's next for Zimmer Spine? Steve Healy, President of Zimmer Spine, has a plan going forward.
"We've really focused on our research and development as well as external licensing and distribution agreements," he says. "Our strategy is to innovate in core fusion. We recently introduced the Virage® OCT Spinal Fixation System, for posterior fixation procedures, and it has been really well received."
Traditionally, Zimmer Spine was focused on non-fusion technologies, but four years ago the company reset its strategy. Now, the fusion devices that have been in the development stage for the past few years are ready for prime time.
"The team has worked extremely hard and we had some nice growth in the third quarter and are working to repeat that in the fourth quarter," Mr. Healy says.
In the United States, there are several healthcare trends impacting the device industry, including:
• Consolidation — hospitals, payers and device companies are consolidating; additionally, more physicians are becoming hospital-employed
• Price pressure — reimbursements are declining and providers must do more with less
• Standardization — hospitals are consolidating the number of vendors they work with
"Surgeons have concerns revolving around some uncertainty they see in healthcare and how much of their practice they control versus how much insurance companies and hospitals are dictating what they need to do," says Mr. Healy. "There are surgeons joining hospitals and that works out for some, but not for everyone. There isn't a one-size-fits-all solution."
Zimmer Spine recognized these changes and developed spine systems that are more intuitive for surgeons and designed for shorter operating time and streamlined efficiency in the OR. Many of the new devices are for minimally invasive procedures, which potentially have better outcomes than open surgery, and lower the overall cost of care versus open procedures. "They also promote surgeon preservation. Surgeons drive in hundreds of screws per month, and that takes a toll. We wanted to find a way to reduce physical wear and tear so they can have longer careers," says Mr. Healy.
Zimmer is building a strong foundation in spine with these core technologies, focusing on complex procedures. "That's really where we targeted most of our development," says Mr. Healy. "In 2015, we'll introduce a thoracolumbar system that will integrate with the Virage System. This new system will allow Zimmer to be involved in opportunities where we weren't before."
The company is also looking to the global arena for continued growth in the future. Here are five key observations from Mr. Healy:
1. Global Zimmer is in more than 100 markets around the world
2. Europe is a strong market for the company
3. Asia has a high growth potential
4. Many surgeons abroad train in the United States and are interested in the same implants and devices
5. There has been growth in some markets that offset pricing challenges in others
"We are building momentum in what has traditionally been a tough market," says Mr. Healy. "We've got a great sales management team and we stay close with our representatives to make sure we are getting them the training and support so surgeons are using the technology effectively the first time and achieving great results with their patients. Our sales and marketing team really hustles to get out and cover first cases and make sure things are going well."
In 2015, the sales force stands to grow more successful as the company introduces additional sets for its new products within the United States. Additionally, Zimmer Spine will introduce the Optio-C® Anterior Cervical System — a unique no-profile modular stand-alone ACDF device — and the Virage System into global markets this year. "We've turned the corner," says Mr. Healy. "We're becoming a significant competitor with opportunities to grow."