As Zimmer Biomet prepares to enter a surging robotics market, CEO Bryan Hanson said the company wants to make sure the company does it right.
Surgical robotics is expected to be hotter than ever in 2019, particularly on the orthopedics side, and Zimmer Biomet is sliding into the market just in time. The Warsaw, IN-based company received clearance for the Rosa Knee System to be used in robotically-assisted total knee replacement procedures in January.
Naturally, during the company’s earnings call Friday, analysts were eager to hear the company’s plans for launching the new system.
“We’re going to do a limited launch out of the gate,” Zimmer Biomet CEO Bryan Hanson said during the call, as transcribed by Seeking Alpha. “We want to be very disciplined in our approach to launching a new robotic system to make sure that we do it right. We have the right education. We have the right service levels. And we will do that limited launch for, let’s call it six months. Post that limited launch is when we move into full launch. And that’s when the organization gets unleashed and we utilize that technology in that full launch status.”
The company’s chief competitor, Stryker, took a similar approach with its Mako Total Knee System, and the strategy has proven to be successful. FDA approved the company’s Triathlon Total Knee System for the Mako robot in August 2015, but Stryker made the market wait more than a year for the full commercial launch. Stryker wanted to release the product at a measured pace in an effort to maximize its chance of success. Judging by Stryker’s most recent earnings report, Mako was definitely worth the wait.
So it stands to reason that Zimmer Biomet will also benefit from taking a conservative approach to the market.
Image Credit: Zimmer Biomet