Group 1 - Class Action Attorney Juan Monteverde's firm, Monteverde & Associates PC, is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1] - The firm is investigating ZimVie Inc. (NASDAQ: ZIMV) regarding its proposed sale to an affiliate of ARCHIMED, where ZimVie shareholders are set to receive $19.00 in cash per share [1] - The article raises the question of whether the proposed transaction is a fair deal for ZimVie shareholders [1] Group 2 - Monteverde & Associates PC is a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court [2] - The firm operates from the Empire State Building in New York City [2]

Core Viewpoint - The Ademi Firm is investigating ZimVie for potential breaches of fiduciary duty and other legal violations related to its transaction with ARCHIMED, which involves a cash offer of $19.00 per share, totaling approximately $730 million in enterprise value [1][2]. Group 1 - ZimVie shareholders are set to receive $19.00 per share in cash, equating to an enterprise value of around $730 million [2]. - The transaction agreement includes provisions that significantly limit competing offers for ZimVie, imposing penalties if a competing bid is accepted [3]. - The investigation focuses on whether the ZimVie board of directors is adequately fulfilling their fiduciary responsibilities to all shareholders amidst these arrangements [3].

Core Viewpoint - ZimVie Inc. has entered into a definitive agreement to be acquired by ARCHIMED, an investment firm focused on healthcare industries, for $19.00 per share, representing a 99% premium over its recent trading price, with an enterprise value of approximately $730 million [2][3]. Company Overview - ZimVie is a global leader in the dental implant market, developing and delivering a comprehensive portfolio of products aimed at supporting dental tooth replacement and restoration procedures [8]. - The company is headquartered in Palm Beach Gardens, Florida, and is committed to advancing clinical science and technology in the dental sector [8]. Acquisition Details - Under the merger agreement, ZimVie stockholders will receive $19.00 in cash for each share, with the transaction expected to close by year-end 2025, pending customary closing conditions [2][4]. - The Board of Directors of ZimVie has unanimously approved the transaction, which is not subject to a financing condition [4]. - Upon completion, ZimVie will become a privately held company, and its shares will no longer be listed on NASDAQ [5]. Strategic Implications - The acquisition is expected to provide ZimVie with the strategic and financial backing necessary to expand its innovative dental technology globally [3]. - ARCHIMED views ZimVie as having strong fundamentals and compelling growth potential, indicating a positive outlook for the company's future [3]. Go-Shop Period - ZimVie has a 40-day go-shop period during which it can solicit proposals from third parties, ending on August 29, 2025 [6]. - There is no assurance that this solicitation process will yield a superior proposal [6]. Advisory Roles - Centerview Partners is serving as the exclusive financial advisor to ZimVie, while UBS Investment Bank is the exclusive financial advisor to ARCHIMED [7].

Core Insights - The article discusses the author's background in investment management and their approach to analyzing stocks, emphasizing the importance of due diligence in identifying investment opportunities [1]. Group 1 - The author has spent five years as a co-founder and CIO of a hedge fund, indicating significant experience in managing investment portfolios [1]. - Prior to this role, the author worked as a hedge fund analyst and portfolio manager at a leading Canadian alternative asset manager, showcasing a strong foundation in investment analysis [1]. - The article serves as a platform for the author to express personal opinions on stocks of interest, highlighting a commitment to independent research [1].

Core Insights - ZimVie Inc. has launched its RealGUIDE Software Suite and Implant Concierge service in Japan, enhancing access to a digital dental implant ecosystem [1][2] - The Japanese dental implant market is significant, representing ZimVie's largest market in the APAC region [1] Product Offerings - RealGUIDE software provides comprehensive tools for precise implant planning, surgical guides, and restorative design, aimed at improving patient care and operational efficiencies [2] - The software is the first complete cloud-based solution of its kind, consisting of multiple modules for thorough diagnosis and advanced design [2] - Implant Concierge is a virtual outsourcing service that simplifies implant treatment planning and guided surgery, designed for high-volume practices [3] Market Opportunity - The rising adoption of dental implants presents a substantial growth opportunity, necessitating more efficient and integrated treatment workflows [4] - Digital dentistry is becoming the new standard in implantology, with ZimVie experiencing strong traction in other markets [4]

Summary of Zimvi's Conference Call Company Overview - **Company**: Zimvi - **Industry**: Dental Implants and Digital Dentistry - **Key Products**: TSX implant, T3 Pro implant, Real Guide software, Implant Concierge, Puros Allografts, Immediate Molar Implant Core Points and Arguments 1. **Market Opportunity**: In the U.S., there are approximately 8 million candidates for tooth replacement, but only 25% receive dental implants, indicating significant growth potential in the market [4][5][6] 2. **Adoption and Education**: Zimvi focuses on increasing adoption of dental implants through training and education for both staff and referring dentists, emphasizing the importance of clinical outcomes and customer experience [5][6][7] 3. **Product Innovation**: 43% of Zimvi's sales come from products launched in the last three years, showcasing a strong innovation pipeline [9][58] 4. **Digital Dentistry**: The company is investing in digital solutions, including AI and cloud-based software, to enhance workflow and patient experience, with Real Guide software seeing a 39% growth in 2024 [10][24][29] 5. **Financial Performance**: Despite headwinds, Zimvi reported a 41% improvement in EBITDA and a 238% increase in EPS, indicating strong operational efficiency [35][36] 6. **Growth Projections**: For the full year, Zimvi anticipates flat to 3% growth in top-line revenue, with adjusted EBITDA growth of 17% and adjusted EPS growth of 31% to 55% [37] Additional Important Insights 1. **Market Dynamics**: The dental implant market is underpenetrated, and Zimvi aims to capture more market share through new product introductions and improved customer relationships [8][12] 2. **Full Arch Market**: Zimvi has increased its share in the full arch market from 5% to approximately 8.5-9%, with plans to further enhance this segment [22][44] 3. **Cost Management**: The company has improved gross margins by 360 basis points through cost reductions and operational efficiencies, with aspirations to reach over 70% gross margin in the long term [50][52] 4. **Pent-Up Demand**: There is potential for pent-up demand in the dental market as consumer sentiment improves and interest rates decrease, which could lead to accelerated growth [54][56] 5. **Customer Retention**: The renewal rate for Real Guide software exceeds 90%, indicating strong customer loyalty and satisfaction [61] Conclusion Zimvi is positioned for growth in the dental implant market through strategic product innovation, digital transformation, and operational efficiencies. The company is optimistic about capturing additional market share and improving financial performance in the coming years.

Company Overview - ZimVie Inc. is a global leader in the dental market, focusing on life sciences and offering a comprehensive portfolio of products for dental tooth replacement and restoration procedures [2] - The company is headquartered in Palm Beach Gardens, Florida, and operates additional facilities worldwide [2] - ZimVie aims to enhance smiles, function, and confidence through its dental implants, biomaterials, and digital workflow solutions [2] Upcoming Events - ZimVie management will participate in the Stifel 2025 Jaws & Paws Conference, scheduled for May 28, 2025, at 3:00 p.m. Eastern Time [1] - A live webcast and archived recording of the event will be available on ZimVie's investor website [1]

Financial Performance - Q1 2025 - Net sales decreased by $6.2 million, a 5.2% decrease, to $112.0 million compared to $118.2 million in Q1 2024[30] - Adjusted Cost of Products Sold as a percentage of sales improved by 360 basis points, from 37.2% in Q1 2024 to 33.6% in Q1 2025[30] - Adjusted EBITDA increased by $5.1 million, a 41% increase, to $17.6 million compared to $12.5 million in Q1 2024[30] - Adjusted EPS increased by $0.19, a 238% increase, to $0.27 compared to $0.08 in Q1 2024[30] - Cash and Cash Equivalents decreased by $8.2 million, from $75.0 million as of December 31, 2024, to $66.8 million[30] Financial Outlook - FY 2025 - Net sales are projected to be in the range of $445 million to $460 million, representing a reported growth of -1% to 2% and constant currency (CC) growth of flat to 3%[32] - Adjusted EBITDA is projected to be in the range of $65 million to $70 million, representing a reported growth of 8% to 17% and CC growth of 8% to 17%[32] - Adjusted EPS is projected to be in the range of $0.80 to $0.95, representing a reported growth of 29% to 53% and CC growth of 31% to 55%[32] Portfolio Revitalization - The company is revitalizing its portfolio with recent launches in dental implants, biomaterials, and digital dentistry[23] - Recent launches include TSX® and T3® PRO Immediate Molar Implant Systems, Azure Multi-Platform Solutions Portfolio, and RealGUIDE® 5.4 Software[23, 24, 25] Digital Dentistry Adoption - The company is seeing rapid adoption of guided surgery software, with 39% growth in FY24[29]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $112 million, representing a decrease of 5.2% in reported rates and a decline of 4.1% in constant currency [18] - Adjusted EBITDA was $17.6 million, translating to a 15.7% adjusted EBITDA margin, reflecting a 41% increase year-over-year [21] - Adjusted earnings per share attributable to continuing operations was $0.27, a 238% increase from $0.08 in the prior year [22] Business Line Data and Key Metrics Changes - Dental implant sales declined low single digits in Q1, consistent with the overall market performance, but showed improvement in March and April [9][10] - Biomaterials portfolio grew just over 1% during the quarter, reflecting ongoing investments in innovation [12] - Digital dentistry business, excluding oral scanner sales, grew high single digits, with the implant concierge service growing 11% year-over-year [13] Market Data and Key Metrics Changes - U.S. net sales were $65.8 million, a decline of 2.8% compared to the prior year, driven by lower implant sales and oral scanners [18] - International net sales were $46.2 million, a decrease of 8.5% on a reported basis, impacted by lower implant sales and headwinds from various factors [19] - The company emphasized a focus on the Japanese market, which is seen as a significant growth opportunity with a healthy premium implant market [43] Company Strategy and Development Direction - The company is focused on improving and streamlining manufacturing and supply chain processes, reducing corporate infrastructure, and refocusing on proprietary premium products [6][8] - A strategic acquisition of a distributor in Costa Rica aims to enhance local market presence and reduce third-party selling costs [15][23] - The company plans to continue prioritizing debt reduction while remaining open to opportunistic acquisitions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dental market's resilience and the potential for growth in dental implants, which are still considered under-adopted [68] - The company anticipates a moderate market recovery and successful execution of commercial strategies in the latter half of 2025 [25] - Management is confident in their manufacturing capabilities and flexibility to mitigate tariff impacts [59][61] Other Important Information - The company has incorporated the estimated $3 million annual tariff costs into their guidance and has plans to mitigate these costs [6][25] - The company reiterated its full-year 2025 revenue guidance range of $445 million to $460 million, reflecting a potential decline to moderate growth [24] Q&A Session Summary Question: Can you provide more details on the uptick in implant units sold in April? - Management noted that April showed resilience with improvements in same-store sales and the success of the new immediate molar implant launch [31][32] Question: What is the current pricing trend in the dental market? - Management indicated that the premium implant market has been less price competitive, allowing for selective pricing strategies to offset tariff impacts [34][36] Question: What are the reasons for the greater decline in international sales compared to the U.S.? - Management highlighted several headwinds affecting international sales, including foreign exchange impacts and a focus shift away from China [40][41] Question: What is the opportunity size for the implant concierge service in Japan? - Management believes the implant concierge service could significantly enhance revenue growth in Japan, improving workflow and accelerating implant adoption [43][44] Question: What actions have been taken to strengthen the supply chain? - Management expressed confidence in their manufacturing capabilities and flexibility, having moved significant operations to mitigate tariff risks [59][61]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $112 million, a decrease of 5.2% in reported rates and a decline of 4.1% in constant currency [18] - Adjusted EBITDA was $17.6 million, translating to a 15.7% adjusted EBITDA margin, reflecting a 41% increase year-over-year [22] - Adjusted earnings per share attributable to continuing operations was $0.27, a 238% increase from $0.08 in the prior year period [23] Business Line Data and Key Metrics Changes - Dental implant sales declined low single digits in Q1, consistent with the overall market performance, but showed improvement in March and April [10][11] - Biomaterials portfolio grew just over 1% during the quarter, reflecting ongoing investments in innovation [13] - Digital dentistry business, excluding oral scanner sales, grew high single digits, with the implant concierge service growing 11% year-over-year [14] Market Data and Key Metrics Changes - U.S. net sales were $65.8 million, a decline of 2.8% compared to the prior year, driven by lower implant sales and oral scanners [19] - International net sales were $46.2 million, a decrease of 8.5% on a reported basis, impacted by lower implant sales and headwinds from various factors [20] - Normalized sales outside the U.S. declined 1.6% in constant currency when accounting for specific headwinds [42] Company Strategy and Development Direction - The company is focused on improving and streamlining manufacturing and supply chain processes while reducing corporate infrastructure [6] - A new Vice President of Americas Sales has been appointed to enhance the sales process and expand the customer base [7] - The company is prioritizing higher-margin implant and digital sales over lower-margin distributed products [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dental market's resilience and the potential for growth in dental implants, which are still under-adopted [66] - The company anticipates continued margin improvement and cash flow generation, aiming to deliver shareholder value [6] - Management reiterated full-year 2025 revenue guidance of $445 million to $460 million, reflecting a 1% decline to 2% growth [25] Other Important Information - The company made a strategic acquisition of a distributor partner in Costa Rica, expected to enhance local market presence and reduce third-party selling costs [16][24] - The company has plans in place to mitigate tariff costs estimated at $3 million per year, largely due to EU-USA tariff rates [6][27] Q&A Session Summary Question: Can you provide more details on the uptick in implant units sold in April? - Management noted that April showed resilience with improved same-store sales and growth in implant units sold, particularly from the new immediate molar implant launch [34] Question: How is pricing trending in the dental market? - Management indicated that the premium implant market has been less price competitive, with selective pricing strategies in place to offset tariff impacts [36][37] Question: What are the reasons for the greater decline in international sales compared to the U.S.? - Management highlighted several headwinds affecting international sales, including foreign exchange impacts and a focus shift away from China [42] Question: What is the current position in the Japanese market? - Management stated that the company has a strong market position in Japan, with the implant concierge expected to drive significant revenue growth [45][47] Question: What actions have been taken to strengthen the supply chain? - Management expressed confidence in manufacturing capabilities and flexibility, having moved significant operations to mitigate tariff risks [58][60]