Sales took a minor hit for Kinetic Concepts during its 3rd quarter 2013, reporting as part of the Centaur Guernsey companies which now includes both LifeCell and Systagenix.
Kinetic Concepts revenues were down about 2.7% during the 3 months ended September 30, amounting to about $320.9 million for the quarter, Centaur Guernsey reported. KCI attributed its decline to Medicare’s competitive bidding program, which expanded earlier this year to include more cities, putting more pressure on KCI to lower its prices.
The Centaur Guernsey companies in total posted a 1.1% increase in revenue for the 3 months ended September 30, but the company’s losses grew more than 1000% thanks to a $443.4 million charge listed in its goodwill and intangible assets impairments. Centaur Guernsey said it attributed the charges to "LifeCell goodwill and other intangible assets."
"We are encouraged by the continued momentum in the business and the positive growth we achieved this quarter. Our recent financial performance provides a preview to our long-term potential and is the result of initiatives we’ve been hard at work on since I joined KCI," KCI and LifeCell president & CEO Joe Woody said in prepared remarks. "In addition, we are excited about the opportunity to take three outstanding individual franchises in KCI, LifeCell and Systagenix and create the global leader in transformational healing solutions with a world-class wound care and biologics portfolio."
Centaur Guernsey is a non-operating holding company comprised of Kinetic Concepts, LifeCell and Systagenix. The trio earlier this year announced that they would join forces to form a single wound care, biologics and regenerative medicines company, led by KCI president & CEO Joe Woody.
LifeCell and Kinetic Concepts merged earlier, with Systagenix joining the mix officially in the 4th quarter of 2013 after a $485 million buyout. KCI announced that deal back in July, saying it would bring a large suite of complementary advanced wound care products into its portfolio.
Kinetic Concepts last year was snapped up in a $6.1 billion leveraged buyout by an Apax Partners-led consortium that included a coupe of Canadian pension funds. The deal was one of the largest leveraged buyouts since before the global recession of 2008.