ZBH

Zimmer Holdings Inc.

Healthcare, Event Driven/Special Sit


Presented:02/20/2015
Price:$121.59
Cap:$20.60B
Current Price:$104.60
Cap:$21.64B

Presented

Date02/20/2015
Price$121.59
Market Cap$20.60B
Ent Value$20.32B
P/E Ratio28.93x
Book Value$38.42
Div Yield0.7%
Shares O/S169.35M
Ave Daily Vol1,080,000
Short Int2.48%

Current

Price$104.60
Market Cap$21.64B
Zimmer Holdings, Inc., together with its subsidiaries, designs, develops, manufactures, and markets orthopaedic reconstructive devices, spinal and trauma devices, biologics, dental implants, and related surgical products in the Americas, Europe, and the Asia Pacific. It offers orthopaedic reconstructive devices that restore function lost due to disease or trauma in joints comprising knees, hips, shoulders, and elbows; dental reconstructive implants, which restore function and aesthetics in patients who have lost teeth due to trauma or disease; spinal devices that are utilized by orthopedic surgeons and neurosurgeons for the treatment of degenerative diseases, deformities, and trauma in various regions of the spine; and trauma devices used primarily to reattach or stabilize damaged bone and tissue to support the body’s natural healing process. The company also provides related surgical products, such as surgical supplies and instruments to aid in orthopedic surgical procedures and post-operation rehabilitation; and other healthcare related services. It primarily serves orthopaedic surgeons, neurosurgeons, oral surgeons, dentists, hospitals, stocking distributors, and healthcare dealers, as well as agents, healthcare purchasing organizations, or buying groups. The company was founded in 1927 and is headquartered in Warsaw, Indiana.

Publicly traded companies mentioned herein: Smith & Nephew PLC (SNN; SN/ LN), Stryker Corp (SYK), Zimmer Holdings Inc (ZBH)

Highlights

The presenter forecasts further consolidation in the medical devices sector, and thinks both Stryker (SYK) and Zimmer (ZBH) stand to benefit. In the near-term, the closing of the ZBH-Biomet deal should drive up ZBH share prices, and could act as a catalyst for further industry consolidation. He believes SYK shares will likely see positive movement after the ZBH deal closes as investors evaluate the potential merits of a transaction with Smith & Nephew.

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