Zimmer distribution agreement with THINK ‘makes sense,’ says Baird

After Zimmer Biomet announced a limited distribution agreement with THINK Surgical regarding its wireless, handheld, TMINI Miniature Robotic System for total knee arthroplasty, Baird noted that the news has driven inbound questions from investors about what this deal might mean for Zimmer’s ROSA robotic platform for total knee arthroplasty. After having checked in with management on that point, the firm was told this deal “in no way signals the company is moving away from ROSA,” says the analyst, who believes the deal “makes sense” when viewed through the lens of CEO Ivan Tornos’ evolving focus on the faster-growing ambulatory surgery center, or ASC, channel. Baird, which adds that it continues to “like the differentiated thinking we’re seeing” from Zimmer leadership, has an Outperform rating and $155 price target on the shares.