Uncle Sam will be getting some of his knees and hips from Zimmer Holdings Inc. (NYSE:ZMH) after the company signed a deal with the U.S. Dept. of Defense that could stretch to 2015.
The Warsaw, Ind.-based orthopedic company will receive “a maximum $13,475,000 fixed-price with economic price adjustment, sole-source, indefinite-delivery/indefinite-quantity contract for orthopedic implantation products,” according to a DOD release.
The contract runs for one year with an option for four one-year options ending March 31, 2015. The implants will be used by the Army, Navy, Air Force, and Marine Corps.
The pickup should bode well for Zimmer, which saw its profits drop some 17 percent during 2010, largely due to a $204 million fourth-quarter charge to its spinal unit’s books, based on the company’s dim view of the spinal market’s prospects.