LivaNova (Nasdaq: LIVN) announced today that it intends to begin winding down its advanced circulatory support (ACS) business unit.
The orderly wind-down is part of an effort to focus on the company’s core cardiopulmonary (CP) and neuromodulation units. ACS generated approximately just 4% of LivaNova’s net revenue for the nine months ended Sept. 30, 2023. The company expects to complete the wind-down by the end of 2024.
London-based LivaNova intends to retain all ACS standalone cannulae products and related accessories. That includes the ProtekDuo, transseptal arterial and venous cannulae and corresponding insertion kits. LivaNova plans to transition these offerings into its CP business unit portfolio during the first quarter of 2024.
Other ACS product lines, including the LifeSPARC and Hemolung systems, will have operations and services discontinued by the end of the year. LivaNova expects to support scheduled service for these platforms through the end of 2024.
In connection with the wind-down, LivaNova expects a pre-tax non-cash impairment charge of up to $110 million during the fourth quarter of 2023. It also expects restructuring charges to range between $15 million and $20 million. The company projects a positive contribution from the wind-down to its adjusted operating income in 2024 compared to 2023.
“LivaNova is committed to managing our portfolio and resources toward the highest growth and return opportunities for shareholders,” said William Kozy, interim CEO and board chair. “We have worked steadily to generate enhanced value from the ACS business. After careful consideration, we determined that exiting ACS and focusing resources on our CP and neuromodulation businesses creates greater innovation opportunities for our customers, their patients and shareholders.”