ZBH Stock Might Rise Following FDA Nod for Knee Implant Component

Zimmer Biomet Holdings, Inc. ZBH recently received the FDA 510(k) clearance for its Persona SoluTion Porous Plasma Spray (“PPS”) Femur. Persona SoluTion PPS Femur is a total knee implant component offering an alternative for patients with sensitivities to bone cement and/or metal.The latest development is an addition to the company’s clinically proven Persona Knee System. The company expects to commercially launch Persona SoluTion PPS Femur in the United States in the first quarter of 2025. ZBH’s Likely Stock Trend Following the NewsFollowing the announcement, shares of ZBH moved 0.1% south to $110.62 yesterday. The company has been gaining a high level of synergies from its expanding Knees business. Per the latest update, Zimmer Biomet is continuously putting efforts into the overall shift of the company’s legacy knee systems to a fully rounded-out Persona portfolio. Henceforth, we expect the latest FDA clearance to motivate market sentiment in favor of ZBH stock in the upcoming days. ZBH currently has a market capitalization of $22.09 billion. Its earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 1.76%.About ZBH’s Persona SoluTion PPS FemurHypersensitivity to metal is a challenge for patients associated with a traditional cemented total knee replacement (TKR) with an implant made of cobalt-chrome (Co-Cr-Mo) alloy. When exposed to certain metals, people with these hypersensitivities can experience an inflammatory response, pain and implant loosening that may require a revision TKR. Persona SoluTion PPS Femur combines the company’s latest advances in cementless fixation with decades of proprietary clinical expertise in developing novel materials and surface-hardening processes. It offers cementless fixation with clinically proven PPS coating. Together, they provide initial scratch fit stability and support biological fixation through bony growth. Persona SoluTion PPS Femur, combined with Persona OsseoTi tibia and Vivacit-E Highly Crosslinked Polyethylene (HXLPE), minimizes the most common metal sensitizers. This is likely to elicit an immune response. The implant is made of Tivanium (Ti-6Al-4V) alloy with more than 17 years of clinical use. The Tivanium alloy is treated with the Ti-Nidium Surface Hardening Process and is compatible with Vivacit-E HXLPE articular surfaces. Industry Prospects Favor Zimmer BiometPer a report by SkyQuest, the global knee replacement market size is expected to reach $16.99 billion by 2031, at a compound annual growth rate of 5.67% during 2024-2031. Key factors responsible for the potential market growth include the rising incidence of osteoarthritis and expanding demand for joint replacement surgeries.  Image Source: Zacks Investment ResearchRecent Developments by ZBHLast month, Zimmer Biomet received FDA Premarket Approval Application (“PMA”) Supplement approval for the Oxford Cementless Partial Knee. The approval is based on safety and effectiveness data from an Investigational Device Exemption study and non-clinical testing for cementless partial knee replacement. With this, Oxford Cementless Partial Knee has become the only FDA-approved cementless partial knee implant in the United States. The latest FDA PMA Supplement approval expands the company’s Knees product portfolio. ZBH’s Price PerformanceIn the past year, shares of ZBH have lost 4.5% against the industry’s 21% growth. ZBH’s Zacks Rank and Key PicksZBH currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space are Haemonetics HAE, Penumbra PEN and ResMed RMD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. The company’s shares have risen 1.8% compared with the industry’s 23.1% growth in the past year. Estimates for HAE’s 2025 EPS have moved north 0.4% to $4.59 in the past 30 days. Estimates for Penumbra’s 2024 EPS have moved north 8.1% to $2.79 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 10.54%.Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ResMed Inc. (RMD): Free Stock Analysis Report Haemonetics Corporation (HAE): Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks