Issue link: https://beckershealthcare.uberflip.com/i/883254
34 DEVICES & IMPLANTS Zimmer Biomet CEO David Dvorak Exits after 10 Years By Laura Dyrda D avid Dvorak stepped down as CEO of Zimmer Biomet and the company is conducting a search for his replace- ment. In the interim, Senior Vice President and CFO Daniel P. Florin will act as CEO. "Serving alongside Zimmer Biomet's ded- icated employees over the past 16 years and leading the company as CEO for 10 of those years has been a privilege and a highlight of my professional career," said Mr. Dvorak. Since he joined the company, Zimmer Biom- et has grown from 3,000 employees in 2001 to 18,000 employees and joined the Fortune 500. Mr. Dvorak also stepped down from the com- pany's board of directors but will remain in an advisory capacity for an undisclosed time- frame, according to Inside Indiana. e announcement came on the same day as the company released a portion of its second quarter 2017 results; the company report- ed flat revenues at nearly $2 billion for the quarter, consistent with their previous esti- mates. However, excluding basis points of contribution from recent acquisition LDR, the revenues would have been down 1.3 per- cent, and certain brands didn't achieve target- ed production levels as quickly as expected post-Biomet merger. "We also experienced slower than expected sales recapture from previously affected cus- tomers in the United States," said Mr. Florin. "As we look toward the second half of 2017, we are focused on restoring full product sup- ply and improving customer engagement, while continuing to progress on our quality enhancement efforts." Mr. Dvorak oversaw Zimmer's merger with Biomet and continued efforts to grow the com- pany's global brand. "rough a combination of organic growth and strategic acquisitions, Zimmer Biomet's revenue has doubled and the company has established a leading portfolio of technologies, solutions and personalized ser- vices," said Board Chairman Larry C. Glass- cok. "On behalf of the board, I thank David for his many important contributions to our company and industry over the years and wish him much success in the future." While interim CEO, Mr. Florin will work with the board, senior leadership and sales force to support customers and enhance stockholder value. He was appointed senior vice president and CFO in June 2015 aer 16 years of ex- perience in the medical device industry; he served in the same role for Biomet prior to its merger with Zimmer. Zimmer Biomet share prices dropped 2 percent aer the company announced Mr. Dvorak's de- parture, and in its preliminary earnings report the company said it expects per-share earnings to be at the bottom range of the previously is- sued guidance, according to MarketWatch. n Medtronic May Soon Conclude Infuse Lawsuits — 5 Things to Know By Laura Dyrda M edtronic PLC reportedly informed investors that it's close to settling lawsuits pertaining to its bone morphogenetic protein product Infuse, according to the Star Tribune. Here are five things to know: 1. The company reached an agreement to settle "substantially all" of the lawsuits related to Infuse, totaling around 6,000 actual and threatened suits in a securities filing. 2. The settlement amounts are confidential. However, the company set aside $300 million for legal fees. 3. The attorneys general in five states sent subpoena documents and requests for information on the sale and marketing of Infuse, and Medtronic has cooperated with the requests; the company set aside funds for inquires last year as well. 4. Last December, a St. Louis judge paved the way for a jury trial al- leging personal injuries from Infuse, which would reveal the sealed internal documents. 5. The company continues to deny allegations associated with the lawsuits filed by patients, investors and employee whis- tleblowers. n Stryker, Spineguard & More: 5 Device Company Mergers, Acquisitions and Agreements By Mackenzie Garrity H ere are five device company mergers, acquisitions and agreements that took place in June. General Electric's GE Additive partnered with Stryker to enhance the orthopedic device com- pany's global supply chain operations Stryker purchased Novadaq Technologies for $701 million. SpineGuard announced its exclusive distribu- tion agreement with XinRong Medical Group for PediGuard in China, Hong Kong and Macau. CONMED acquired MedShape's ExoShape ACL Fixation System. SpineGuard signed an exclusive licensing agree- ment with Adin Dental Implant Systems for the use of SpineGuard's Dynamic Surgical Guidance technology. n