Biotech Values

[DewDiligence]

Re: GLP-1 effect on med-device companies

ZBH’s new CEO concurs with the discussion in the post I’m replying to. From ZBH’s 3Q23 CC transcript:

https://finance.yahoo.com/news/zimmer-biomet-holdings-inc-nyse-224434890.html

…once the cartilage is damaged, there is no recovery. …dropping weight is not going to cure osteoarthritis. …If anything, obesity is a blocker today to joint surgery as many surgeons are uncomfortable operating on patients with a BMI greater than 40 [in some countries] or even above the 30 threshold in some locations.

So why could GLP-1s then be a tailwind for orthopedics? Three compelling reasons. First, if you can lower the patient’s BMI below a certain threshold… these patients now become eligible for surgery. And all the data points that we’re getting in primary markets like the U.S. is that there is a large percentage of patients who today are not going through surgery because their BMI is too high.

Secondly, if a patient does lose…weight…and…become more active, there will be a greater risk for additional joint procedures because there will be injury.

And third, if a patient loses weight, they are likely to live longer… expanding the patient’s [timeline] for an orthopedic procedure. A good example of this is Japan, the second-largest market in the world for osteoarthritis with minimal obesity rates, but very long life expectancy...