Zimmer Biomet took a key step forward toward its spine and dental spinoff company, ZimVie.
The company filed a Form 10 registration with the Securities and Exchange Commission in connection with the planned spinoff, according to a Jan. 21 news release.
Six things to know:
1. Zimmer Biomet identified three spine product categories with mid-single-digit and high-single-digit market growth between 2021 and 2026: minimally invasive solutions, motion preservation devices and enabling technologies. Core and complex solutions, which include spinal fusion and orthobiologics, are expected to grow in the low single digits; however, its estimated market size is $9 billion.
2. In dentistry, dental implant solutions, biomaterials and digital dentistry were areas expected to see mid- to high-single-digit growth between 2021 and 2026.
3. The separation of ZimVie will be a pro rata distribution to stockholders of more than 80 percent of outstanding common shares of common stock. After distribution, Zimmer Biomet will have less than 20 percent of outstanding shares of ZimVie common stock.
4. Reasons for separation include allowing investors to separately value Zimmer Biomet and ZimVie's distinct investment identities and better pursue distinct operating priorities and strategies. Zimmer Biomet expects to be in a better position to shift its portfolio mix while ZimVie will have flexibility to chase avenues for growth and tap into underpenetrated global markets.
5. Risk factors related to ZimVie's business operations include the effects of the COVID-19 pandemic and supply chain disruptions.
6. ZimVie's formation was unveiled in February 2021, and it will be led by former Medtronic executive Vafa Jamali.