Biomet reported surging 2nd-quarter profits today, saying a 61% reduction in legal costs drove the increase.
Warsaw, Ind.-based Biomet posted profits of $89.8 million on sales of $84.3.6 million for the 3 months ended Nov. 30, 2014, representing a 1,732.7% bottom-line gain compared with the fiscal 2014 2nd quarter. Sales growth came in at 2.2%, Biomet said.
The orthopedics giant, which is awaiting European approval of its pending, $13.4 billion merger with Zimmer (NYSE:ZMH), said it logged $43.8 million in 1-time items during the quarter, down 61.3% compared with the same period last year.
That decline came "primarily as a result of decreased litigation costs due to reaching favorable resolution with certain insurance carriers in regards to certain claims," Biomet said. Adjusted to exclude 1-time items, profits were $133.6 million, up 13.2% compared with last year’s corresponding quarter.
Last month Zimmer proposed to divest some of its knee and elbow assets in Europe, aiming to mollify anti-trust regulators there.