Recently, leading orthopedic medical device giant
) launched a new injectable gel to treat osteoarthritis of the
knee. This single injection medicine, known as Gel-One
Cross-linked Hyaluronate, is expected to be a big relief for the
knee arthritis patients, helping them improve knee join function
and restore mobility.
The company is optimistic about this new invention, which is
expected to procure better result in the challenging US knee
market. According to Zimmer, Gel-One Hyaluronate will act as a
supplement to natural synovial fluid. This product is
particularly effective on patients who are not responsive to
conventional treatments like non-pharmacologic therapy,
non-steroidal anti-inflammatory drugs (NSAIDs) or simple
analgesics such as acetaminophen.
We are also encouraged to find the result of a clinical study,
which showed efficacy of Gel-One Hyaluronate over a Phosphate
Buffered Saline control (PBS). Result showed that, on an average,
there is almost 40% reduction in pain from baseline in patients
who are being treated with Gel-One Hyaluronate.
Zimmer is making continuous efforts to strengthen its pipeline
with the launch of new products under the reconstructive implant
division. Moreover, the ongoing shift in demand to premium
products, such as Prolongand Vivacit-EHighly Crosslinked
Polyethylene, Trabecular MetalTM Technology products, high-flex
knees, porous hip stems and the introduction of patient specific
devices, is expected to continue to positively affect sales
growth. Along with the focus on driving Reconstructive and
emerging businesses, Zimmer is exploring opportunities to expand
its reach into early intervention products.
The company should benefit from favorable long-term trends
that point toward sustained growth driven by obesity, wear and
tear of joints from more active lifestyles, growth in emerging
markets, new material technologies, advances in surgical
techniques and proven clinical benefits of joint replacement
More importantly, the percentage of population over age 65 in
the U.S., Europe, Japan and other regions is expected to nearly
double by the year 2030. In the U.S., the oldest baby boomers are
now pushing retirement age. We believe that Zimmer is benefiting
from this aging demography since knee and hip joints tend to wear
out with age and therefore require replacement.
However, the intense competition in the orthopedic market and
pricing pressure remain areas of concern. The company faces tough
competition from players such as
Zimmer currently carries a Zacks Rank #3 (Hold). However,
other medical device stocks worth a look are
). Both these stocks carry a Zacks Rank #1 (Strong Buy).
CYTOKINETCS INC (CYTK): Free Stock Analysis
GIVEN IMAGING (GIVN): Free Stock Analysis
STRYKER CORP (SYK): Free Stock Analysis
ZIMMER HOLDINGS (ZMH): Free Stock Analysis
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