Henry Schein (NSDQ:HSIC) said yesterday that it’s planning more changes for its business after announcing the spinout of its animal health business and a joint venture for its dental software operation earlier this year.
In a terse regulatory filing yesterday, Melville, N.Y.-based Schein said it’s “committed to an initiative to rationalize its operations and provide expense efficiencies” by the end of the year, but provided no details on the plan.
“The company is currently unable in good faith to make a determination of an estimate of the amount or range of amounts expected to be incurred in connection with these activities, both with respect to each major type of cost associated therewith and with respect to the total cost, or an estimate of the amount or range of amounts that will result in future cash expenditures,” Schein said.
In April the company revealed plans to spin off the animal health unit in a merger with Vets First Choice to create a new combined animal health business which will operate under the moniker Vets First Corp. The newly formed business posted pro forma sales of roughly $3.6 billion last year, Schein said at the time.
Last week the company unveiled another move, saying that it and Internet Brands formed joint venture Henry Schein One, which aims to produce integrated dental technology focused on improving practice management, marketing and patient communication.
Baird & Co. analyst Jeff Johnson said the latest changes are likely to involve layoffs.
“With all this recent activity, we’re not surprised that management may now be seeing many facility and/or personnel redundancies that have to be addressed,” Johnson wrote in a note to investors, according to Newsday.
Steve MacMillan took over as CEO of Hologic in 2013, drawing on his experience at medtech titans like Stryker and Johnson & Johnson. Since then, Hologic has grown into a $3 billion business.
At DeviceTalks Boston, MacMillan will provide exclusive insights into the Massachusetts-based company and its evolving definition of women's healthcare. You don't want to miss it!
Use code WOMENSHEALTH to save an additional 10%.