Dive Brief:

• Zimmer Biomet has partnered with Think Surgical to exclusively distribute a wireless handheld robotic knee surgery device, the companies said Tuesday.
• The planned product is a customized version of Think’s existing robotic device, which works with implants from multiple manufacturers. Zimmer is integrating its technology into the customized device but said its existing Rosa robotics platform remains its core focus.  
• J.P. Morgan analysts said the partnership is a “low cost way of adding more robotic options,” but they are “staying cautious on the potential for meaningful share gains.” Ambulatory surgery centers (ASCs), a key focus for Zimmer, are facilities where the handheld device may have advantages.

Dive Insight:

Zimmer’s Rosa competes with Stryker’s Mako and Johnson & Johnson’s Velys for the robot-assisted knee surgery market. Think’s Tmini device is different from those traditional, console-based systems. Tmini has a smaller footprint and a wireless robotic handpiece that is guided by a CT-based surgical plan. Think is promoting the product as a way to bring robotics to more clinics and operating rooms. 

Truist Securities analysts said in a note to investors that Tmini currently works with 10 other implant partners, “predominantly smaller market share players,” in addition to Zimmer. The distribution deal covers a customized robotic device tailored exclusively to Zimmer’s knee implants. 

Nitin Goyal, Zimmer’s chief science, technology and innovation officer, said in a statement that Tmini is “well-suited for knee procedures performed in ambulatory surgery centers and other out-patient settings.” ASCs were a core topic at Zimmer’s investor day in May, when executives explained how they are working to capture the $7 billion opportunity that is growing in the high single digits.

CEO Ivan Tornos indicated an interest in technologies such as Tmini at the investor day, telling attendees the company was looking for “robotic knee categories or platforms that can deliver a better solution.” The company is committed to Rosa, Tornos said, but “looking at other optionality.”

Zimmer is planning to launch its Think-partnered device in the second half of 2024. The product may have a lower price than existing robotic systems, with Truist analysts noting Tmini is nearly half the cost of rival devices.

J.P. Morgan analysts highlighted the “mixed success of Smith and Nephew’s handheld Cori” as a reason to question if Zimmer will win market share and discussed potential next steps. 

“We wouldn’t completely write off the potential for an acquisition in the future,” the analysts said. “Although this would give Zimmer Biomet control over Tmini as well as the full Think Surgical robot, it would be replacing a decent option for Zimmer Biomet in the form of Rosa. All told, we’re not completely sure how much value this would add to the company.”