Zimmer Still Strong Despite Hip Failure Claims
Despite ongoing problems with several products, including the Zimmer Durom Cup hip replacement system, Zimmer Holdings continues to stay near the front of the pack of the orthopedic industry.
Zimmer Holdings in the black
In 2010, Zimmer Holdings of Warsaw, Ind. reported net sales of $4.2 billion, a 3 percent improvement over 2009.
Only 3 medical device manufactures reported greater 2010 net sales: DePuy Orthopedics (a subsidiary of Johnson & Johnson), Stryker and Medtronic.
Zimmer’s success is due in large part to overseas growth, which offset domestic challenges such as reduced demand for orthopedic devices and negative publicity for products involved in lawsuits and recalls.
Zimmer survives increasing reports of hip failure
In 2008, Zimmer Holdings suspended sales of its Durom Cup, a popular hip replacement component, after reports surfaced of high rates of Zimmer hip failure. The shockwaves of that action are still being felt today, as Zimmer hip lawsuits pour into courts and Zimmer hip lawyers advertise Zimmer hip failure on TV.
Several Zimmer knee components have also been named in lawsuits and recall requests.
Still, Zimmer Holdings (NYSE: ZMH) is going strong, trading just a couple dollars off its 52-week high. The company’s 2010 successes include the approval of the Continuum acetabular hip replacement system and the acquisitions of Beijing Montagne Medical Device and SoPlus Orthopaedic Sugical Power Tools.
Earlier this year, Zimmer announced it was undertaking a restructuring effort that would save the company more than $100 million before taxes. In March, the company laid off workers across the US and closed North Carolina plant that employed about 130 workers.
According to regulatory filings, Zimmer Holdings employed more than 8,800 workers at the end of 2010.
Financial success despite $150 million set aside for Zimmer hip lawsuits
Over the past 3 years, Zimmer has set aside more than $150 million to compensate recipients of the Durom Cup for claims of hip implant loosening, hip failure and resulting hip revision surgery. Today, many of those recipients have filed a Zimmer hip lawsuit and secured compensation through mediation.