ZimVie Inc. (NASDAQ:ZIMV) Q3 2023 Earnings Call Transcript

Operator: Next question comes from the line of Matt Miksic from Barclays.

Matt Miksic : So I appreciate all the color. I wanted to get a sense of following up on the question on spine. It seemed like when you described at NAV, the opportunity to sort of get after a more significant part of the cervical disc replacement market with the new sizes that you’ve rolled out in the U.S. based on — I think it was like 30% of the European market was addressed by these new sizes. Can you — would you actually describe the current competitive environment in the U.S. like you’ve been at a disadvantage because these other — these patients say 1/3 roughly of the U.S. population is possibly been unaccessible to you, and this is going to open that up? Or would you say this is kind of a market expansion opportunity for folks who are maybe looking at a patient and saying, “You know what, we have to fuse this because we just don’t have the size for this patient”.

I’d love to get a sense for how big of an inflection you think this is for the U.S. market? And I have one follow-up.

Vafa Jamali : Sure. Matt. So I think the underlying concern that we had with our portfolio was we haven’t innovated since the acquisition of LDR, and we needed to continue to innovate the portfolio specifically to Mobi-C. So there’s a couple of things we’re doing there. The size it just adds to our portfolio. So it adds more suitable patients to that portfolio, and puts it competitively at parity with the newer launch that’s come out. So that’s important to be able to at least offer everything that’s happening there. At the same time, we think that we can — we have — the biggest opportunity is still to expand the market in terms of who is eligible for a disc versus fusion. And so the combination of the sizes that we are offering now along with the newly announced hybrid study, which will allow a surgeon to put a fusion next to cervical disc these are really, really important drivers of new market growth.

So we haven’t put a hard number on either one of those, but look at it as a way for us to become more and more competitive within the cervical disc market but never lose sight of the fact that really the greatest opportunity we serve the biscuit is improving the users and the patient population that get versus fusion versus going after competitive share.

Matt Miksic : Got it. That’s super helpful. And just one more on spine, there’s a lot of what’s being categorized as sort of disruption or dislocation because of some major spine deals and actions as you’re aware of, I’m sure. Is there — has there been any effect on your ability to or to either recruit reps or distributors or your the pressure on you to sort of other folks trying to pick off some of your better distributors. What’s that dynamic like? And then I have just one more follow-up on dental.

Vafa Jamali : Yes. So on that particular situation, that’s a situation we were on the wrong side of that when we announced the span. And right now, I feel like there is a lot of very, very excellent talent out there, particularly in the United States where we hope to be the recipient of a lot of that talent to improve our sales channel or to go into areas where we have less penetration. So we’re feeling like we will be a net beneficiary of that disruption, and I look forward to sharing that news with you over next a while. It won’t be something we do suddenly. All these things take a little bit of time, but if we’re fast enough, but nevertheless, I think we’ll be the beneficiary of some positive news there.