Zimmer Biomet Expands Orthopedic Portfolio with New Paragon 28 Devices

Zimmer Biomet has launched two new orthopedic devices developed by Paragon 28, the foot and ankle specialist it acquired for $1.1 billion earlier this year. The introduction of these products marks a significant step in Zimmer's strategy to maintain Paragon's double-digit growth and expand its sports medicine, extremities, and trauma (SET) business.

New Devices Target Complex Fractures

The newly launched devices, the Gorilla Pilon Fusion Plating System and the Phantom TTC Trauma Nail, are designed to address challenging orthopedic injuries. The Gorilla system, which received FDA 510(k) clearance in July, is used for stabilization and fixation of various fractures, with a specific focus on pilon fractures—a type of shinbone break that accounts for 7% to 10% of tibial fractures.

Dr. Clayton Bettin, division chief of hospital orthopedics at Campbell Clinic, praised the Gorilla system, stating, "It offers a lower-profile option that is anatomically contoured and enables stable fixation across both columns." This system is only the second plate on the market specifically designed for primary ankle fusion in comminuted pilon fractures, following Arthrex's 2021 510(k) clearance for a similar device.

The Phantom TTC Trauma Nail, also FDA-cleared in July, is a fixation device for demanding trauma cases, including complex pilon fractures. These additions to Zimmer's portfolio demonstrate the company's commitment to expanding its offerings in specialized orthopedic care.

Preserving Paragon 28's Growth and Culture

Zimmer Biomet's approach to integrating Paragon 28 has been notably hands-off, aiming to preserve the acquired company's culture and growth trajectory. Suketu Upadhyay, Zimmer's CFO, emphasized this strategy at a recent Morgan Stanley event, stating, "We're not doing that. They have their own design centers, their own management team, their own quality management system."

This decision has allowed Paragon to retain its entire commercial team, minimizing disruptions in sales personnel. The goal is to enable Paragon to maintain the double-digit growth it experienced before the acquisition, a crucial element of Zimmer's plan to expand its SET business.

CEO Ivan Tornos expressed ambitious growth plans for the SET segment at the same Morgan Stanley event, saying, "I'll be really surprised if we don't double the size of the business over the next five to seven years through organic and inorganic means." Tornos views the Paragon 28 acquisition as a platform for building new businesses and exploring adjacent opportunities in the orthopedic space.

The launch of these new devices, coupled with Zimmer's strategic approach to Paragon's integration, underscores the company's commitment to innovation and growth in the competitive orthopedic market. As the industry continues to evolve, Zimmer Biomet appears poised to leverage its expanded portfolio and specialized expertise to address complex orthopedic challenges and drive future expansion.