NOVEMBER 22, 2016 BY BRAD PERRIELLO

Medtronic (NYSE:MDT) shares dropped in pre-market trading today after the world’s largest medical device company missed Wall Street’s expectations with its fiscal 2nd-quarter sales and lowered its outlook for the rest of the year.

Fridley, Minn.-based Medtronic posted profits of $1.12 billion, or 80¢ per share, on sales of $7.35 billion for the 3 months ended Oct. 28, for bottom-line growth of 114.4% on sales growth of 4.1% compared with Q2 2015.

Adjusted to exclude 1-time items, earnings per share were $1.18, 6¢ ahead of the forecast on The Street. But analysts there were looking for sales of $7.46 billion; investors reacted by pushing MDT shares down -7.3% to $74.70 in pre-market activity today.

“Q2 revenue was disappointing and did not meet our expectations. We faced issues that affected our growth, including slower-than-expected revenue as we await new product introductions, particularly in CVG and Diabetes,” chairman & CEO Omar Ishrak said in prepared remarks. “Despite this revenue shortfall, we produced a strong improvement in operating margins and double digit constant currency earnings per share growth.”

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By GlobeNewswire,  November 21, 2016

This article appears in: News Headlines

Referenced Stocks: ALSPW

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WARSAW, Ind., Nov. 22, 2016 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global leader in musculoskeletal healthcare, today announced that the Company has been chosen as an Indo UK Institutes of Health (IUIH) preferred orthopaedic partner to improve the delivery of and access to quality, affordable musculoskeletal healthcare for approximately 400 million people in India over the next 20 years through IUIH’s 11 centers of excellence (“Medicities”) to be created in major states across the country.  IUIH Medicities will offer patients throughout India and abroad access to world-class services and clinical expertise in a modern, technology-led hospital.  In addition, each Medicity will establish a medical college, nursing college, post-graduate training center, global standard research and development center and medical manufacturing facilities.  The partnership was announced by the IUIH Medicities Program at the India-UK Technology Summit inaugurated by the Prime Minister of India, Narendra Modi, and the Prime Minister of the UK, Theresa May.  The UK Secretary of State for International Trade, Dr. Liam Fox, chaired the roundtable that announced the partnership.

“At its one-year anniversary, the IUIH Medicities Program is delighted to announce Zimmer Biomet as a preferred orthopaedic partner for the next two decades,” said Ajay Rajan Gupta, M.D., Group Chief Executive Officer of IUIH.  “IUIH shares Zimmer Biomet’s commitment to improve the quality of life for patients around the world.  This partnership demonstrates a significant step toward achieving our vision to transform the delivery of quality healthcare and medical education services across India.”

The newly created partnership between IUIH and Zimmer Biomet delivers value throughout the orthopaedic care continuum.  Total Zimmer Biomet commitments to the program include an equity investment in UK Global Healthcare Limited (UKGH), the parent organization for IUIH; the supply and distribution of quality large joint implants, trauma products and small fixation devices for replacement surgery; the implementation of the Rapid Recovery and Theatre Care Rapide programs to optimize patient-focused processes and protocols in the hospitals and operating rooms across the 11 Medicities; and the establishment of the Zimmer Biomet Institute of India, a state-of-the-art medical training and education facility.  In addition to the opportunity to improve patient outcomes, the efficiencies created through the long-term partnership are expected to significantly contribute to the delivery of affordable care in India by reducing the total cost of orthopaedic care by approximately 25 percent.

“Zimmer Biomet is proud to be chosen as a preferred orthopaedic partner for the IUIH Medicities program,” said David Dvorak, President and CEO of Zimmer Biomet.  “This long-term commitment demonstrates an unprecedented level of partnership between a forward-looking healthcare provider and a leading musculoskeletal healthcare company, putting transformational patient care and exponential value creation within reach.”

About Zimmer Biomet

Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer Biomet is a global leader in musculoskeletal healthcare. We design, manufacture and market orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; office based technologies; spine, craniomaxillofacial and thoracic products; dental implants; and related surgical products.

We collaborate with healthcare professionals around the globe to advance the pace of innovation. Our products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Together with healthcare professionals, we help millions of people live better lives.

We have operations in more than 25 countries around the world and sell products in more than 100 countries. For more information, visit www.zimmerbiomet.com or follow Zimmer Biomet on Twitter at www.twitter.com/zimmerbiomet.

About Indo UK Institutes of Health

On November 12, 2015, the Indian and British Prime Ministers signed a historic Health Collaboration Agreement for the establishment of the Indo UK Institutes of Health (IUIH). The IUIH is a Private Public Partnership (Indo UKpartnership) that is linked to the Indian Government’s Smart Cities programme and aims to build 11 IUIH “Medicities” along with 89 Indo UK Clinics (IUCs).

The IUIH facilities’ global operations and research expertise will be supported by collaboration with the UK National Health Service (NHS) and partnerships with leading international healthcare industry companies and international partners in research, education, manufacturing and healthcare delivery.

The vision is to develop fully integrated healthcare that is Affordable, Available and Accountable.

Please visit iuih.co.uk for more information or contact victoria.lusher@iuih.co.uk.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, but are not limited to, statements concerning Zimmer Biomet’s expectations, plans, prospects, and product and service offerings, including new product launches and potential clinical successes.  Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially.  For a list and description of some of such risks and uncertainties, see our periodic reports filed with the SEC.  These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in Zimmer Biomet’s filings with the SEC.  We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be set forth in our periodic reports.  Accordingly, such forward-looking statements speak only as of the date made.  Readers of this news release are cautioned not to place undue reliance on these forward-looking statements, since, while management believes the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate.  This cautionary statement is applicable to all forward-looking statements contained in this news release.

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SOURCE Zimmer Biomet Holdings, Inc.

News Provided by Acquire Media

November 22, 2016

WARSAW, Ind., Nov. 21, 2016 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) (the “Company”) today announced the commencement of cash tender offers (collectively, the “Offers”) for up to $1.1 billion aggregate purchase price (excluding accrued and unpaid interest to, but not including, the applicable settlement date and excluding fees and expenses related to the Offers) (the “Maximum Tender Amount”) of its 5.750% Senior Notes due 2039, its 4.450% Senior Notes due 2045, its 4.250% Senior Notes due 2035, its 3.550% Senior Notes due 2025 and its 4.625% Senior Notes due 2019 (collectively, the “Notes”). The purpose of the Offers is to reduce the principal amount of the Company’s outstanding debt securities. Notes purchased in the Offers will be retired and cancelled.

The following table sets forth certain information regarding the Notes and the Offers:

(1) The Tender Cap for each series represents the maximum aggregate principal amount of Notes of such series that will be purchased in the Offers.

(2) The applicable page on Bloomberg from which the dealer managers will quote the bid side prices of the applicable U.S. Treasury Security. In the above table, “UST” denotes a U.S. Treasury Security.

(3) The Hypothetical Total Consideration is inclusive of the Early Tender Premium (as defined below) but exclusive of accrued and unpaid interest from the last interest payment date applicable to the relevant series of Notes up to, but not including, the Early Settlement Date (as defined below) and is based on the reference yield of the Reference U.S. Treasury Security as of 11:00 a.m., New York City time, on November 18, 2016. The actual reference yields of the Reference U.S. Treasury Securities will be determined by the dealer managers based on certain quotes available at 11:00 a.m., New York City time, on the price determination date, which is expected to be December 6, 2016.

The Offers are being made pursuant to and are subject to the terms and conditions, including a financing condition, set forth in the Offer to Purchase dated November 21, 2016 (the “Offer to Purchase”) and the related Letter of Transmittal (the “Letter of Transmittal”). The Offers will expire at 11:59 p.m., New York City time, on December 19, 2016, unless extended or earlier terminated by the Company (the “Expiration Date”). Tenders of Notes may be withdrawn at any time at or prior to 5:00 p.m., New York City time, on December 5, 2016 (the “Withdrawal Deadline”), but may not be withdrawn thereafter except in certain limited circumstances where additional withdrawal rights are required by law.
(3) The Hypothetical Total Consideration is inclusive of the Early Tender Premium (as defined below) but exclusive of accrued and unpaid interest from the last interest payment date applicable to the relevant series of Notes up to, but not including, the Early Settlement Date (as defined below) and is based on the reference yield of the Reference U.S. Treasury Security as of 11:00 a.m., New York City time, on November 18, 2016. The actual reference yields of the Reference U.S. Treasury Securities will be determined by the dealer managers based on certain quotes available at 11:00 a.m., New York City time, on the price determination date, which is expected to be December 6, 2016.

The consideration paid in the applicable Offer for each series of Notes that are validly tendered and accepted for purchase will be determined in the manner described in the Offer to Purchase by reference to a fixed spread over the yield to maturity of the applicable U.S. Treasury Security specified in the table above and in the Offer to Purchase (the “Total Consideration”). Holders of Notes that are validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time, on December 5, 2016 (the “Early Tender Deadline”) and accepted for purchase will receive the applicable Total Consideration, which includes an early tender premium of $30.00 per $1,000 principal amount of the Notes accepted for purchase (the “Early Tender Premium”). Holders of Notes who validly tender their Notes following the Early Tender Deadline and on or prior to the Expiration Date will only receive the applicable “Tender Offer Consideration” per $1,000 principal amount of any such Notes validly tendered by such holders that are accepted for purchase, which is equal to the applicable Total Consideration minus the Early Tender Premium. The Total Consideration will be determined at 11:00 a.m., New York City time, on December 6, 2016, unless extended by the Company.

Payments for Notes purchased will include accrued and unpaid interest from the last interest payment date applicable to the relevant series of Notes up to, but not including, the applicable settlement date for such Notes accepted for purchase.

The settlement date for Notes that are validly tendered and not validly withdrawn on or prior to the Early Tender Deadline and accepted for purchase is expected to be December 13, 2016 (the “Early Settlement Date”). The settlement date for Notes that are validly tendered following the Early Tender Deadline but on or prior to the Expiration Date and accepted for purchase is expected to be December 20, 2016, the first business day after the Expiration Date (the “Final Settlement Date”), assuming the Maximum Tender Amount of Notes is not purchased on the Early Settlement Date.

Subject to the applicable tender caps specified in the table above (the “Tender Caps”), the Maximum Tender Amount and proration, all Notes validly tendered and not validly withdrawn on or before the Early Tender Deadline having a higher Acceptance Priority Level (with 1 being the highest) will be accepted before any validly tendered Notes having a lower Acceptance Priority Level (with 5 being the lowest), and all Notes validly tendered after the Early Tender Deadline having a higher Acceptance Priority Level will be accepted before any Notes validly tendered after the Early Tender Deadline having a lower Acceptance Priority Level. However, even if the Offers are not fully subscribed as of the Early Tender Deadline, subject to the Tender Caps, the Maximum Tender Amount and proration, Notes validly tendered and not validly withdrawn on or before the Early Tender Deadline will be accepted for purchase in priority to Notes validly tendered after the Early Tender Deadline even if such Notes validly tendered after the Early Tender Deadline have a higher Acceptance Priority Level than Notes validly tendered prior to the Early Tender Deadline. Subject to applicable law, the Company may increase or decrease any Tender Cap without extending the Early Tender Deadline or the Withdrawal Deadline.

Notes of a series may be subject to proration (rounded to avoid the purchase of Notes in a principal amount other than in an integral multiple of $1,000) if the aggregate principal amount of the Notes of such series validly tendered and not validly withdrawn is greater than the applicable Tender Cap or would cause the Maximum Tender Amount to be exceeded. Furthermore, if the Offers are fully subscribed as of the Early Tender Deadline, holders who validly tender Notes following the Early Tender Deadline will not have any of their Notes accepted for payment regardless of Acceptance Priority Level. The Company’s obligation to accept for payment and to pay for the Notes validly tendered in the Offers is subject to the satisfaction or waiver of the conditions, including a financing condition, as described in the Offer to Purchase. The Company reserves the absolute right, subject to applicable law, to: (i) waive any and all conditions to the Offers, including, without limitation, the financing condition; (ii) extend or terminate the Offers; (iii) increase or decrease the Maximum Tender Amount and/or increase, decrease or eliminate one or more of the Tender Caps without extending the Early Tender Deadline or the Withdrawal Deadline; or (iv) otherwise amend the Offers in any respect.

Information Relating to the Offers

J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are acting as the dealer managers for the Offers. The information agent and tender agent for the Offers is D.F. King & Co, Inc. Copies of the Offer to Purchase, Letter of Transmittal and related offering materials are available by contacting D.F. King & Co, Inc. by telephone at (888) 564‑8149 (toll-free) or (212) 269‑5550 (banks and brokers) or by email at zbh@dfking.com. Questions regarding the Offers should be directed to J.P. Morgan Securities LLC, Liability Management Group, at (212) 834-3424 (collect) or (866) 834-4666 (toll-free) or Wells Fargo Securities, LLC, Liability Management Group, at (704) 410-4760 (collect) or (866) 309-6316 (toll‑free).

This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The Offers are being made only pursuant to the Offer to Purchase and only in such jurisdictions as is permitted under applicable law.

About Zimmer Biomet

Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer Biomet is a global leader in musculoskeletal healthcare. We design, manufacture and market orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; office based technologies; spine, craniomaxillofacial and thoracic products; dental implants; and related surgical products.

We collaborate with healthcare professionals around the globe to advance the pace of innovation. Our products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Together with healthcare professionals, we help millions of people live better lives.

We have operations in more than 25 countries around the world and sell products in more than 100 countries. For more information, visit www.zimmerbiomet.com, or follow Zimmer Biomet on Twitter at www.twitter.com/zimmerbiomet.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding the cash tender offers for certain outstanding senior notes of the Company. Forward‑looking statements may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “assumes,” “guides,” “targets,” “forecasts,” and “seeks” or the negatives of such terms or other variations on such terms or comparable terminology. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially. For a list and description of some of such risks and uncertainties, see the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s filings with the SEC. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be set forth in its periodic reports. Accordingly, such forward‑looking statements speak only as of the date made. Readers of this communication are cautioned not to place undue reliance on these forward‑looking statements, since, while management believes the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in this communication.

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SOURCE Zimmer Biomet Holdings, Inc.

Related Links

http://www.zimmerbiomet.com

By Michael Wong, JD, Co-authored with Lynn Razzano, RN, MSN, ONCC, November 18,2016

According to the Centers for Medicare & Medicaid Services (CMS), hip and knee replacements are the most common inpatient surgery for Medicare beneficiaries. In 2014, there were more than 400,000 procedures, costing more than $7 billion for the hospitalizations. CMS says that there is little consistency across providers in terms of the quality and cost of care for these procedures.

With an aim to improve the consistency of the quality and cost of care among providers,  CMS has introduced a new payment model, Comprehensive Care for Joint Replacement (CJR), in April 2016, using a concept known as bundled payments.

A significant aspect of this new model is that it contains exceptions to what will be reimbursed—exceptions that could prove potentially harmful to patients recovering from hip and knee replacements. Reconsidering these exceptions could go a long way in improving patient safety, reducing the number of readmissions, and reducing the cost of care for patients undergoing hip and knee replacement.

Comprehensive care for joint replacement (CJR): How it works

To understand how CJR works and its implications on patient care, it is helpful to understand how the system currently operates.

Consider a scenario:

A patient is admitted to a hospital and the doctor recommends undergoing surgery for major joint replacement (the example would also hold true in the event of the reattachment of a lower extremity). The patient goes into surgery, is then hospitalized after the operation, gets discharged, and continues her recovery from home.

The quality and cost of this episode of care—surgery, hospitalization, and recovery—varies considerably from hospital to hospital. For instance, according to the CMS, the rate of complications (e.g., infections, implant failures) can be three times as high at some hospitals, putting those patients cared for at increased risk. Simultaneously, the cost could range anywhere from $16,500 to $33,000 under the current fee-for-service model.

Under the CJR model, CMS provides bundled payments to hospitals for these kinds of surgeries. Bundled payment is the reimbursement of healthcare providers based on the expected costs of a clinically-defined episode of care like the one described above. It has been estimated that one-third of healthcare costs recovered by hospitals are through bundled payments, and that figure is increasing.

With CJR, CMS reimbursement includes all related items and services paid under Medicare Part A (e.g., inpatient hospital care, skilled nursing facility, hospice, lab tests, surgery, and home health care) and under Medicare Part B (e.g. outpatient care, durable medical equipment, home health care, and some preventive services), with certain exceptions.

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