Zimmer Biomet
(NYSE: ZBH)
announced today that it entered into a limited distribution agreement with Think Surgical.
The deal centers around Think’s wireless, handheld TMINI miniature robotic system for total knee arthroplasty (TKA). TMINI, which received FDA clearance in May 2023, features a wireless, robotic handpiece. It assists surgeons in performing total knee replacement.
Following a CT-based three-dimensional surgical plan, the TMINI robotic handpiece automatically compensates for the surgeon’s hand movement to locate bone pins along precisely defined planes. Cutting guides are then connected to the bone pins for accurate bone resection.
The distribution agreement results in an exclusive offering, integrating Zimmer Biomet technology into a customized TMINI solution. Zimmer Biomet said in a news release that TMINI complements its flagship Rosa surgical robot portfolio with a handheld robotic option. Rosa, which recently expanded into shoulder replacement, has four applications, including the knee. The company says it enables accurate implant placement to a predetermined, CT-based, 3D surgical plan.
Dr. Nitin Goyal, Zimmer Biomet’s chief science, technology and innovation officer, says the deal makes the company the first to offer two complementary robotic systems for surgeons looking to incorporate robotic assistance while performing a knee replacement. The company plans to introduce the customized TMINI system in select U.S. markets in the second half of 2024.
“TMINI addresses surgeon demand for an ergonomic, wireless, handheld robotic system and now, in addition to Rosa, underscores our dedication to empowering surgeons with more choices to make the right decision for each patient,” Goyal said. “Our strategic partnership with Think Surgical allows us to explore the value of a handheld platform to accelerate adoption of robotics in orthopedic surgery.
“We believe the TMINI system’s design is particularly valuable and well-suited for knee procedures performed in ambulatory surgery centers and other out-patient settings.”
The analysts’ view on the deal between Zimmer Biomet and Think Surgical
Truist analysts Richard Newitter, Samuel Brodovsky, Ravi Misra and Benjamin Goldstein shared their thoughts on the distribution agreement:
“For [Zimmer Biomet], we view this as a complimentary solution that is consistent with the company’s strategy to grow into the rapidly expanding orthopedic ASC/outpatient site of care and enhance [Zimmer Biomet’s] competitive position within this portion of the market,” the analysts wrote.
They say company management singled out ASCs and outpatient orthopedic procedures as a key growth and focus area last month. According to the analysts, the deal with Think provides another user-friendly offering in its portfolio. It should allow the company to compete with ASC-focused physicians who may have eyes on Stryker’s Mako robotic system.
Currently, Think Surgical has 10 other implant partners working with TMINI. However, the analysts highlighted the customization aspect of Zimmer Biomet’s deal with Think.
“Our thinking is that the TMINI/ZBH solution will be customized not only for ZBH’s implant portfolio (i.e. Persona), but may also integrate other aspects of ZBH’s growing digital ecosystem and workflows,” the analysts said.
According to the Truist team, TMINI costs around $500,000. That lands at nearly half the cost of competitive robotic systems, although they note the possibility of a different business model for the Zimmer Biomet version.
The analysts say that, despite no disclosed financial terms, they wouldn’t be surprised if Think structured participation from recurring implant revenue in some way. They suspect a potential revenue/profit sharing agreement within the relationship between companies.
