ZimVie (Nasdaq: ZIMV) saw declining revenue and widening losses during its first full quarter independent of Zimmer Biomet.
The company also reported yesterday evening that it is reducing full-year guidance. ZIMV shares are down more than 11% to $17.56 apiece this morning on the news. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, is up more than 3%.
CEO Vafa Jamali told MassDevice and Medical Design & Outsourcing on March 1 — ZimVie’s first day of public trading — that initial tasks in the company’s spine tech business included pulling out of countries that had proved unprofitable. There were also some spine product discontinuations.
Coupled with a strong U.S. dollar causing headwinds for the dental tech side of the business, ZimVie’s losses roughly doubled year-over-year to $8.7 million, or 33¢ per share, for the quarter ended June 30, 2022. Sales were down 11.5% year-over-year to $233.4 million.
ZimVie reported adjusted EPS of 67¢. Yahoo Finance presently lists one analyst revenue prediction for the quarter who expected $238.3 million in sales.
“We continue to make progress towards our most vital commercial initiatives in both our dental and spine segments” Jamali said in a news release out after market close. “Within dental, we recently launched two highly innovative products: the T3 PRO tapered implant and the Encode emergence healing abutment. Within spine, we received a major positive insurance policy decision from Anthem Blue Cross Blue Shield for The Tether, a device for treatment of pediatric scoliosis, expanding insurance coverage for up to 30 million lives.”
Jamali added: “We are also tracking to our plan to improve the short- and long-term operational efficiency of our newly independent company.”
Facing greater than anticipated foreign exchange headwinds, ZimVie is reducing its full-year revenue forecast to $915 to $930 million versus prior guidance of $1 billion.
The company is also cutting its adjusted EPS guidance to $2.10 to $2.30 from a previous $1.80 to $2.00 amid lower sales.
This story originally ran on Aug. 10, 2022. Updated Aug. 11 with the next-day stock price.
