MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

Home » Orthofix streamlines, settles infringement suit

Orthofix streamlines, settles infringement suit

By

OFIX logo

UPDATE: Dec. 17, 3:57 p.m.

Orthofix International NV (NSDQ:OFIX) is streamlining its operations, aiming to save up to $7 million a year.

The reorganization is "another key step toward the achievement of our plan to improve our operating profit margin, and was facilitated in part by the recent consolidation of operations into our new facility in Lewisville, Texas," president and CEO Alan Milinazzo said in prepared remarks. It will mean a charge of $4 million, or 13 cents per diluted share, to the company’s fourth-quarter books.

Dan Yarbrough, vice president of investor relations, told MassDevice that "probably less than half" of the employees affected by the layoffs are in the U.S. Yarbrough declined to be more specific about the layoffs.

Orthofix is also shifting a small, 10-person office from Boston to Lewisville, he added, including CEO Alan Millinazzo and CFO Robert Vaters and Yarbrough himself.

"Last summer consolidated a couple of our other business facilities, one in Mass. and one in N.J., and we folded them into an operation we already had in Dallas, and moved it all to a new building there," he told us.

Orthofix also announced the settlement of a patent infringement lawsuit filed against it by NuVasive Inc. (NSDQ:NUVA) and Osiris Therapeutics Inc. (NSDQ:OSIR) in April in the U.S. District court for New Jersey over its Trinity Evolution allograft. The settlement involves a licensing agreement for the tissue graft product that will see Orthofix log another, $2 million (or 7 cents per diluted share) charge on its Q4 books.

As a result, the company lowered its Q4 earnings outlook from 59 cents to 62 cents per share to 39 cents to 42 cents. Revenues are expected to be lower than prior forecasts as well, "primarily due to a slower growth rate in the company’s spine stimulation business." Orthofix said fourth-quarter sales of $142 million to $144 million; full-year sales are pegged at $562.6 million to $564.6 million.

OFIX shares were down 4.2 percent to $28.02 in mid-day activity Dec. 16. Shares closed at $27.26 the next day, down another 1.7 percent.

In case you missed it

RSS From Medical Design & Outsourcing

  • Download COMSOL News Special Edition Biomedical
    Get instant access to this special edition of COMSOL News where you will read user stories that showcases how simulation enables engineers, researchers, and scientists explore and analyze biomedical designs. Download Now.       The post Download COMSOL News Special Edition Biomedical appeared first on Medical Design and Outsourcing.
  • Qosina adds new tube-to-tube barb connectors
    Qosina has added 25 new tube-to-tube barb connectors to its portfolio, the OEM single-use component supplier for the medical and pharmaceutical industries said this week. Ronkonkoma, New York-based Qosina said its inventory of tube-to-tube barb connectors is available in more than 500 configurations. The connectors can fit inner tube diameters between 1/32 in and 1… […]
  • Abbott imaging catheter recall flagged as Class I by FDA
    The FDA has identified the Abbott (NYSE:ABT) recall of its Dragonfly OpStar Imaging Catheter as a Class I recall. That’s the most serious level of a medical device recall, carrying the risk of serious injury or death. Five incidents, one injury and zero deaths were reported when Abbott initiated the recall on April 11. The… […]
  • Zimmer Biomet adds ESG and CEO visibility to executive’s duties
    Zimmer Biomet (NYSE:ZBH) today announced additional responsibilities for Investor Relations SVP and Chief Communications Officer Keri Mattox. Mattox’s new title at the Warsaw, Indiana-based orthopedics company is chief communications and administration officer. She will be responsible for “building and executing a comprehensive strategy around Environmental, Social and Governance (ESG) initiatives and increasing CEO visibility, engagement… […]
  • ‘Catastrophic explosion’ and resin shortage led Medtronic’s supply chain problems
    Medtronic CEO Geoff Martha today said a “catastrophic explosion” in Medtronic’s supply chain for packaging and a shortage of resins were the biggest issues hurting the company’s fourth-quarter performance. Fridley, Minnesota-based Medtronic (NYSE:MDT) reported about $350 million less in sales than analysts were expecting for the quarter, which ended April 29. Martha said about 75%… […]
  • 3M Health Care Business president is leaving this year
    3M Health Care Business Group President Mojdeh Poul will retire from the company on July 1, 2022. Poul joined Maplewood, Minnesota-based 3M (NYSE:MMM) in 2011 as the global business VP of critical and chronic care solutions. She later became VP and general manager of the company’s food safety business and president of numerous 3M divisions,… […]
  • Iterative Scopes announces positive data in Skout AI colonoscopy algorithm clinical trial
    Iterative Scopes this week announced positive trial data in a study of its colorectal cancer screening algorithm, Skout. Cambridge, Massachusetts-based Iterative Scopes designed Skout as a computer-aided device (CADe) that uses artificial intelligence and computer vision technology to detect suspicious tissue and provide real-time feedback for gastroenterologists performing the procedure. Get the full story on… […]
  • Device developer SeaStar Medical hires chief medical officer
    SeaStar Medical has hired Dr. Kevin Chung as chief medical officer of the medtech developer starting July 1. Denver-based SeaStar is developing a platform therapy focused on hyperinflammation of vital organs. The company’s Selective Cytopheretic Device was designated as a breakthrough device by the FDA earlier this year. SeaStar is set to go public in… […]
  • Varta presents microbattery product portfolio at Computex 2022
    Varta will present its broad product portfolio of microbatteries, which make a wide range of future-proof applications possible, at Computex in Taipei starting today. Varta’s microbattery product portfolio ranges from rechargeable lithium-ion button cells to nickel metal hydride button cells, primary silver oxide cells, primary lithium button cells and cylindrical lithium batteries to hydrogen gas… […]
  • Entegris opens Life Sciences Technology Center in Massachusetts
    Entegris (Nasdaq:ENTG) announced today that it opened a new Life Sciences Technology Center in Billerica, Massachusetts. The new Life Sciences Technology Center was built to offer life sciences customers the opportunity to leverage Entegris’ cold-chain supply expertise to optimize processes, reduce costs and increase speed to market. Get the full story at our sister site,… […]
  • MedAcuity hires SVP of business development
    Medtech software development firm MedAcuity today said it has hired Simon Johnson as SVP of business development. Westford, Massachusetts-based MedAcuity said Johnson previously built the client partner team and managed strategic clients at digital consultancy Mobiquity. He also served as SVP of client services at GreenPages Technologies, responsible for driving services revenue growth leading to… […]

Leave a Reply