Greatbatch (NYSE:GB) said it wants to largely shutter a pair of plants in Switzerland and relocate their operations to Ft. Wayne, Ind., and Tijuana, Mexico.
The Clarence, N.Y.-based company said the slumping orthopedics market and downward pricing pressures are precipitating the move, which is expected to affect 90% of the 196 workers at the plants in Orvin and Corgemont, Switzerland – or about 176 employees.
Under Swiss law, Greatbatch must provide a comment period for employees before putting the plan in motion. The Swiss workers have until July 20 to give their input; the company is hoping to execute the move by the end of 2013.
Sign up to get our free newsletters delivered straight to your inbox
"The presentation of this plan follows particularly difficult orthopaedics market conditions since Precimed became part of Greatbatch. Beyond the economic slowdown immediately following the acquisition, customers have started to put more and more emphasis on product pricing as well as slowed down the rate at which they launch major joint replacement programs," according to a press release. "The company remains committed to the global and European orthopaedics markets, with the proposed structure being even more capable of meeting customer design and technical support needs. A limited number of sales, administrative and technical roles would likely remain in Switzerland, aligned with Greatbatch Medical’s regional operating model."
"This consolidation would optimize utilization of our existing operating infrastructure while enhancing the overall competitiveness of the business. The resulting cost savings would permit continuous investments in both our commercial strategy and medical device innovations," president Mauricio Arellano said in prepared remarks. "We are intensely focused on growth in our core business, growth through targeted acquisitions and growth through new, innovative medical devices. Our intention to relocate select production to more highly-efficient sites would be yet another step toward our vision of developing complete medical systems and devices."
ThermoGenesis sells CryoSeal to Asahi Kasei
Japanese conglomerate Asahi Kasei (TYO:3407) is on a tear through the U.S. medical device market. Hard on the heels of its $YY billion buyout of Zoll Medical, Asahi Kasei is picking up its option on ThermoGenesis Corp.‘s (NSDQ:KOOL)
CryoSeal fibrin wound sealant for $2 million. Read more
Masimo, PSS World Medical ink Pronto-7 distribution deal
Masimo (NSDQ:MASI) inked a distribution deal for its hand-held Pronto-7 patient monitor with PSS World Medical (NSDQ:PSSI). Read more
Digirad dodges proxy war
Digirad Corp. (NSDQ:DRAD) said it agreed to alter its bylaws and corporate structure to avoid a proxy war with activist investor the Red Oak Group. Read more
NASDAQ warns Escalon Medical on possible de-listing
Escalon Medical (NSDQ:ESMC) said the NASDAQ stock exchange warned it of a possible de-listing if it can’t get its stock price back above the exchange’s $`-per-share minimum requirement. ESMC shares were trading at 69¢ apiece as of about 11:15 a.m. today. Read more
- Sorin Group drops $14M on cardiovascular cannulae maker California Medical Laboratories
- Natus Medical closes $58M Nicolet divestiture to CareFusion
- One Equity Partners, the PE arm of JP Morgan Chase, to pay more than $1B for M*Modal
Analysts’ ups and downs
- AtriCure (NSDQ:ATRC): Piper Jaffray reiterates "overweight" rating, lowers price target from $14 to $12.
- C.R. Bard (NYSE:BCR): Piper Jaffray reiterates "neutral" rating, increases price target from $92 to $102.
- Cutera (NSDQ:CUTR): Piper Jaffray reiterates "overweight" rating, lowers price target from $12 to $10.
- Haemonetics (NYSE:HAE): Sidoti downgrades to "neutral" from Buy.
- Hansen Medical (NSDQ:HNSN): Piper Jaffray reiterates "overweight" rating, lowers price target from $5 to $4.
- HeartWare International (NSDQ:HTWR): Piper Jaffray reiterates "neutral" rating, raises price target from $80 to $88.
- Insulet (NSDQ:PODD): Canaccord Genuity reaffirms “buy” rating.
Leave a Reply
You must be logged in to post a comment.