How ZimVie’s spine business is setting itself up for future success

2023-12-12

高管变更

Nearly two years after ZimVie spun out of Zimmer Biomet, SVP and Global Spine President Rebecca Whitney says the spine business’ transformation is nearly complete. A new FDA clearance allows for the use of ZimVie’s Vital spinal fixation system with Brainlab’s Spine & Trauma Navigation. It’s an important milestone as ZimVie seeks to compete against Medtronic’s Mazor spine surgery robots. The partnership — announced in March 2023 — is about each company doing what it does best. While ZimVie has a deep legacy and scope when it comes to spine implants, Brainlab has spine imaging, planning, navigation, and robotic-assisted systems to enable surgeons to better plan and execute spinal procedures, accurately place pedicle screws, and minimize radiation exposure. In a recent interview with Medical Design & Outsourcing, Whitney said it made sense for ZimVie to move on from its internal efforts to develop a surgical robot and navigation software and to work with Brainlab instead. “This is the fastest development we’ve ever done with a partner, because our team is so excited to get this out. We see this as the first of several steps to deepen that partnership as we move forward,” Whitney said. The plan is to launch the first Vital and Brainlab sets in early 2024. Next up in 2024, ZimVie will submit for a 510(k) for use of Brainlab software with ZimVie’s Virage OCT spinal fixation system, which uses extreme-angle omnidirectional screws. The partnership with Brainlab is part of Whitney’s answer to skeptics who ask when ZimVie’s spine business will return to growth. Since ZimVie spun out of Zimmer Biomet in early 2022, Whitney and other leaders have trimmed the spine business — and even exited markets such as China. They’ve turned their attention to areas where there are opportunities for growth, like the ambulatory surgery center space. The refocusing means that ZimVie’s spine revenue for the first nine months of 2023 shrunk 8.5%, to $309 million, compared with the same period a year before. David Saxon, senior research analyst at Needham & Co., recently described the spine business as a “pain in the back” for ZimVie versus the more solid footing enjoyed by its dental tech business. Whitney’s response is that it was a situation where things had to get worse before they could get better. “We knew this was going to be a marathon and not a sprint,” she said. “This was all necessary. … We’re staying the course, and we have total confidence that we’re going to come out on the other side. But we’re right in the thick of it right now. It’s kind of hard to see that sometimes if you’re on the outside looking in.” Leading a turnaround A veteran of companies including BD, Covidien and GE HealthCare, Whitney rose up in Zimmer Biomet’s spine business to become its GM in 2018. More than a year later, she left to become VP of ZB’s ambulatory surgery center/outpatient and efficient care lines. In making the change, she saw the difference that comes with moving to a part of the business that is a higher priority. “It was like someone flipped the switch. I remember lobbying for resources, and people saying, ‘You’re asking for 10 people. Why don’t we give you 14?’ And I’m thinking, ‘This is a different environment than what I was living.’” It was little wonder, then, that when future ZiimVie CEO Vafa Jamali asked Whitney in early 2021 about returning to the spine business to lead it through the spinoff and beyond, her initial reaction was: “Why would I do that?” But as Whitney hit it off with Jamali, she saw an opportunity to unearth the spine business and enable it to reach its full potential outside of the Zimmer Biomet umbrella. She saw healthy foundations in the spine business and the chance to rebuild a team including some highly experienced people and get them excited about where the business goes next. “I always felt we had this untapped opportunity with this business. I knew this thing would be messy. I knew this would take time. … I’m drawn to turnarounds. I think they’re challenging and fun.” As it became independent, ZimVie was already a leader in the motion preservation space with its Mobi-C cervical disc and its Tether vertebral body tethering system. “We also have a really robust core spine fusion line, and some of those products that are real workhorses for us haven’t been touched in years because of that challenge in getting investment [under Zimmer Biomet] that I was mentioning. We’ve got really good bones, and a lot of these lasting brands just need a refresh,” Whitney said. She summed up what needed to be done: “We’re big enough to compete, but we’re not so big that we can be everywhere and all the time.” Making choices Whitney is data-driven in how she examines a business and makes choices. For example, she saw 55 R&D projects in the spine pipeline, but nothing struck her as truly world-changing. “We got really focused and said, ‘Let’s focus our efforts where we know we can — where we have a head start already and where we’ve got a commercial plan that allows us to really execute well. So I keep saying this is super simple, but we need the right products being sold in the right markets. Whether that’s certain countries outside of the U.S. or certain sites of care inside the U.S., lining that up is the sweet spot,” Whitney said. “For example, cervical disc replacement is a perfect solution for the ambulatory surgery center that has a right product being sold into the right market, and we have a clear right to win in that space. So let’s get those investors shored up and ensure the mission is solid, and then we can turn our attention to the more cluttered spots.” When it came to China, it didn’t make sense for ZimVie to stay as the country’s government sought to cut what its healthcare system pays for medical devices. Big medtech companies such as Boston Scientific and Medtronic have been able to stick it out because they can make up for the price cuts in the volume of devices sold — but it was much tougher for a smaller pure-play spine player such as ZimVie, Whitney said. “We said, ‘We want to stay if we can make this possible.’ And so we bid a select portion of our portfolio at a higher price point thinking, ‘OK, this is something that we can at least justify, and unfortunately, the government came back and said unless you meet a price point that was just flat out nonsensical for us. We really had no choice.” What’s next for ZimVie’s spine business On top of the Brainlab partnership, Whitney remains excited about the ZimVie Tether, which could change the game for treating adolescent idiopathic scoliosis . Surgeons helped design the system because they saw an opportunity to improve the lives of their pediatric patients. ZimVie announced in October more that 2,000 children worldwide have been treated with The Tether. “It is the most exciting part of our portfolio because of what it does to change these kids’ lives. It’s fantastic, and then the growth is there because only one out of 10 kids that are indicated for it are getting it today,” Whitney said. ZimVie is also just getting started on a refresh of its core spinal fusion line “Part of what we’re doing is not starting over and wiping away everything that we spun out with, but starting from a huge head start to make those products even better.”