Zimmer Shows Flexibility

In contrast, Martinelli simply expected sales of spinal and trauma products to remain at last year's levels. However, the company posted a surprising 14% jump in spinal sales instead.

Looking ahead, Martinelli was already predicting that both of those smaller divisions -- along with implants -- would post stronger growth going forward.

Hurdles Ahead

Still, Zimmer could face some challenges in its core orthopedics business. Notably, the company is banking much of its future on "minimally invasive surgery," or MIS, that has led to complications. Indeed, one analyst noted, problems with two-incision MIS -- just one technique promoted by Zimmer -- have caused MIS itself to become a sensitive topic.

Morgan Stanley analyst Glenn Reicin offered his view after attending the recent meeting of the American Academy of Orthopedic Surgeons, where MIS emerged as a major topic of debate this year. He acknowledged that MIS, as a new procedure, could lead to more complications at first. Nevertheless, he suggested that surgeons will grow more adept with experience and drive MIS success rates higher.

In the meantime, Zimmer itself continues to portray the MIS procedures as highly successful already.

"When compared with conventional hip replacement, the MIS two-incision technique -- as taught worldwide at Zimmer Institute facilities -- saved an average of 30% in costs while improving clinical outcomes by more than 30%," the company said. Going forward, "we will continue to pursue the marriage of improved patient quality of life and measurable economic value added to our health care system."

Reicin, for one, has seen no reason to change his favorable outlook on Zimmer even if others have reported less stellar results from the procedure.

"Just as we do not expect positive data on the use of MIS to drive adoption overnight, neither do we expect reports of complications to halt adoption or in any way affect Zimmer's position in this market -- especially since Zimmer now favors a variety of MIS approaches -- despite its previous decision to patent its two-incision approach," Reicin wrote last month. "As we see it, one way or another, this industry is moving toward treating most patients less evasively.