Zimmer Biomet's spine and dental spinoff, ZimVie, will be completed March 1 instead of the previously announced timeline of mid-2022.
Headquartered in Westminster, Colo., ZimVie will focus on key growth areas of the spine and dental markets, including implants, surgical tools, bone grafts, spinal fusion implants, non-fusion alternatives and digital care technologies.
For 2022, the company expects to earn $1 billion in revenue, with an adjusted EBITDA margin of between 13.1 percent to 13.6 percent, but reiterated that uncertainties surrounding the COVID-19 pandemic could affect those projections.
"We intend to prioritize innovation and enhanced commercial and operational focus to improve the adoption of our product platforms within the growing $20 billion global dental and spine markets," ZimVie President and CEO Vafa Jamali said in a Feb. 7 news release.
Mr. Jamali, a former Medtronic executive who oversaw the company's respiratory, gastrointestinal and informatics business, is tasked with leading ZimVie out of the gates in March alongside a team of executives announced in September.
"As an independent company, we will be uniquely positioned to expand the reach of our solutions and execute on opportunities to drive sustainable growth and long-term shareholder value as we bring renewed energy and strategic focus to our brands and products," Mr. Jamali said.
Zimmer Biomet decided to spin off the dental and spine lines together because they include similar implant materials and scalability prospects.
"Although there's not obvious reasons that you would look at from a strategic standpoint that those businesses would be together, from a commercial perspective, there is a lot of capability and know-how and materials that are used for implants across dental as well as spine," said CEO Bryan Hanson.
In the fourth quarter, the company's spine and dental sales decreased 4.1 percent year over year to $260.7 million, with total revenue in the quarter dipping 2.3 percent to $2 billion.
Zimmer Biomet isn't the only company with plans to spin off a portion of its business. Other companies with planned separations over the next two years include Johnson & Johnson, RTI Surgical and DJO's parent company, Colfax.